When determining the lease term for Bath Tune Up, what option periods are considered?

According to Bath Tune Up's 2025 Franchise Disclosure Document, when determining the lease term at commencement, the company considers termination and renewal option periods available. These options are included in the lease term if Bath Tune Up is reasonably certain it will exercise them.

This means that Bath Tune Up assesses whether it is likely to renew or terminate a lease when first establishing the lease term for accounting purposes. This assessment impacts how the lease is recorded on the company's financial statements.

For a prospective franchisee, this indicates that Bath Tune Up's financial health and lease obligations are influenced by these considerations. Understanding how Bath Tune Up accounts for lease terms, including renewal options, can provide insight into their financial planning and risk management.