What constitutes a 'transfer' by a Bath Tune Up franchisee?

According to Bath Tune Up's 2025 Franchise Disclosure Document, a 'transfer' by a franchisee is broadly defined. It encompasses not only the transfer of the franchise agreement itself, but also the transfer of the business's assets or any change in the ownership structure of the franchise. This broad definition means that any action that alters who controls or owns the Bath Tune Up franchise is considered a transfer under the terms of the agreement.

This definition has significant implications for Bath Tune Up franchisees. If a franchisee considers selling their business, bringing in a partner, or even changing the ownership percentage among existing owners, these actions would all be classified as a transfer. As such, they would be subject to the franchisor's approval process, which includes meeting certain conditions and potentially paying a transfer fee.

The franchisor retains the right to approve all transfers, ensuring that any new franchisee or owner meets their standards and qualifications. This control allows Bath Tune Up to maintain consistency and protect the brand's reputation. Franchisees need to be aware of these stipulations, as failing to obtain franchisor approval for a transfer could result in a breach of the franchise agreement.

Prospective Bath Tune Up franchisees should carefully review the specific conditions for franchisor approval of a transfer, as outlined in Section 9.2(b)(i)-(vii) of the franchise agreement. These conditions typically include ensuring the new franchisee is qualified, paying the initial franchise fee and a transfer fee, securing approval of the purchase agreement, arranging for training, obtaining a release from the current franchisee, settling all outstanding debts to the franchisor, and ensuring the new franchisee signs the current franchise agreement.