For Bath Tune Up, can 'Control' be established through means other than ownership of voting securities or contracts?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person or entity, whether through the ownership of voting securities, by contract, or otherwise.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, control can be established through means other than ownership of voting securities or contracts. The FDD defines "Control" as the power to direct or influence the management and policies of a person or entity, whether through ownership of voting securities, by contract, or 'otherwise.'
This definition indicates that Bath Tune Up recognizes that control can be exerted in various ways beyond just owning stock or having contractual agreements. This could include, for example, having a significant influence over the entity's decisions or operations through other means.
For a prospective franchisee, this broad definition of 'Control' is important because it highlights that the franchisor may assess control based on a variety of factors, not just formal ownership or contractual rights. Franchisees should be aware of this broad interpretation and how it might affect their relationship with Bath Tune Up.