What constitutes a 'transfer' of a Bath Tune Up franchise by the franchisee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| k. “Transfer” by | 1.20, 9.2 | Includes transfer of contract or assets or any ownership |
| franchisee – definition | change. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, a 'transfer' by the franchisee is broadly defined. It encompasses not only the transfer of the franchise agreement itself, but also the transfer of the franchise's assets or any change in the ownership of the franchise. This broad definition means that any action that alters who controls or owns the Bath Tune Up business is considered a transfer under the terms of the franchise agreement.
This definition has significant implications for a Bath Tune Up franchisee. If a franchisee considers selling their business, bringing in a partner, or even changing the ownership structure of their company, these actions would all be considered a transfer. As such, they would be subject to the franchisor's approval process, which includes meeting certain conditions outlined in the franchise agreement.
The FDD states that Bath Tune Up retains the right to approve all transfers. The franchisee needs to be aware of these stipulations, as failure to obtain approval could result in a breach of the franchise agreement. Prospective franchisees should carefully review Section 9.2 of the franchise agreement, as referenced in the FDD, to fully understand the requirements and restrictions associated with transferring their Bath Tune Up franchise.