Are Continuing Royalty payments to Bath Tune Up refundable?

According to the 2025 Bath Tune Up Franchise Disclosure Document, Continuing Royalty payments are generally not refundable. The FDD specifies that payments of Continuing Royalty are not refundable. However, if a franchisee submits a late Gross Revenue report and overpays the Continuing Royalty based on an imputed Gross Revenue of $60,000, the overpayment will be applied to the Continuing Royalty for the month following the month in which the Gross Revenue report was received by Bath Tune Up.

This means that while a franchisee cannot get a direct refund of royalty payments, Bath Tune Up will credit any overpayment resulting from a late report to the next month's royalty fees. This policy provides a limited form of adjustment, but it does not cover situations where the franchisee believes the royalty fee was incorrectly calculated for other reasons.

Franchisees should ensure timely submission of their Gross Revenue reports to avoid the imputed revenue calculation and potential overpayment. Additionally, franchisees should carefully review their royalty calculations each month and address any discrepancies promptly with Bath Tune Up, although there is no guarantee of a refund outside the specific scenario described in the FDD.