What is the dependency for the Existing Franchisee to transfer the Bath Tune Up franchise to the New Franchisee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the foregoing and of the covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
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- Existing Franchisee shall transfer the Franchise to New Franchisee on or about (Transfer Date) subject to the provisions of paragraph 3, below, and paragraph 9.2 of the Franchise Agreement.
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- Existing Franchisee will transfer physical possession of the Confidential Operating Manual (Manual) to Franchisor and to New Franchisee of all items required by the Franchise Agreement, including, without limitation, (i) all books, manuals, financial records, receipts, invoices, and documents relating to the Franchised Business; and (ii) all other documents, property and other objects containing Franchisor's Marks. New Franchisee has reviewed the Manual and agrees that the Confidential Operating Manual shall apply fully to its operation of the Franchised Business. New Franchisee agrees to abide by all other manuals and guidelines, present and future, of Franchisor, including, but not limited to, those pertaining to advertising.
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- If New Franchisee has not already done so to the satisfaction of Franchisor, New Franchisee shall comply with the training requirements set forth in the Franchise Agreement by attending the next available training program offered by Franchisor for new franchisees.
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- Concurrently upon the Transfer Date New Franchisee shall become a franchisee of Franchisor under the Franchise Agreement and Existing Franchisee shall immediately cease operating under the Franchise Agreement. Existing Franchisee shall thereupon comply with all provisions in the Franchise Agreement concerning termination set forth in Article 12 thereof, including, but not limited to, ceasing all use of the Marks of Franchisor.
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- As between Existing Franchisee and Franchisor, and with the exception of the rights and obligations set forth in Article 12 of the Franchise Agreement (which is incorporated herein by reference), the franchise relationship created by the Franchise Agreement is hereby terminated and superseded by this Consent and Assumption and in all respects having been assumed by New Franchisee as of the Transfer Date. Existing Franchisee hereby waives all rights to relief from forfeiture under §1179 of the California Code of Civil Procedure and acknowledges that there is no subsisting franchise agreement between Franchisor and existing Franchisee.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the existing franchisee's ability to transfer the franchise to a new franchisee is contingent on several factors. The transfer must occur on or about the agreed Transfer Date, and it is subject to the provisions outlined in paragraph 3 of the agreement and paragraph 9.2 of the Franchise Agreement.
The existing franchisee is obligated to transfer physical possession of the Confidential Operating Manual to both Bath Tune Up and the new franchisee. Additionally, all items required by the Franchise Agreement, including books, manuals, financial records, receipts, invoices, and documents related to the franchised business, as well as any materials containing Bath Tune Up's marks, must be transferred. The new franchisee must review the manual and agree to adhere to it, along with all other present and future guidelines provided by Bath Tune Up, including those related to advertising.
Furthermore, if the new franchisee has not already met Bath Tune Up's training requirements, they must attend the next available training program for new franchisees. Upon the transfer date, the new franchisee officially becomes a Bath Tune Up franchisee under the Franchise Agreement, while the existing franchisee must cease operations and comply with all termination provisions outlined in Article 12 of the Franchise Agreement, including discontinuing all use of Bath Tune Up's marks. The existing franchise relationship is terminated, with the new franchisee assuming all responsibilities and obligations as of the transfer date.