What does 'Control' mean in the context of the Personal Covenant and Guarantee for a Bath Tune Up franchise?
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, the term 'Control' within the context of the franchise agreement refers to the power to direct the management and policies of the franchisee's business. This control can be exerted directly or indirectly.
'Control' can be established through various means, including ownership of voting securities, contractual agreements, or other arrangements that grant the ability to influence the franchisee's business decisions. This definition is important because it clarifies who is subject to the Personal Covenant and Guarantee, ensuring that all individuals or entities with the power to direct the franchisee's operations are bound by the terms of the Franchise Agreement.
For a prospective Bath Tune Up franchisee, this definition means that not only the franchisee themselves but also any other individuals or entities that have the power to influence the management and policies of the franchise must sign the Personal Covenant and Guarantee. This ensures that all parties with significant influence over the franchise's operations are held accountable for complying with the Franchise Agreement.