For Bath Tune Up, does the definition of 'GAAP' change over time, and if so, how is it updated?

According to Bath Tune Up's 2025 Franchise Disclosure Document, the definition of Generally Accepted Accounting Principles (GAAP) is dynamic. The franchise agreement specifies that "GAAP" means the accounting principles in effect in the United States of America, as they are defined and updated periodically.

For a Bath Tune Up franchisee, this means that the financial reporting and accounting practices they must follow are not static. As accounting standards evolve, so too will the requirements for franchisees. This ensures that financial reporting remains consistent with current best practices.

The franchisee needs to stay informed about changes to GAAP, as these changes could affect how they prepare their financial statements and reports for Bath Tune Up. While the FDD defines GAAP, it does not specify how Bath Tune Up will communicate these changes to franchisees. It would be prudent for a prospective franchisee to ask Bath Tune Up how they disseminate updates to GAAP and what resources are available to help franchisees comply with evolving accounting standards.