What is the duration of the non-compete period for a Bath Tune Up franchisee after the expiration date?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) For a continuously uninterrupted period of two years, beginning with "expiration date" specified below, Franchisee will not, directly or indirectly, for itself, or through, on behalf of, or in conjunction with any other person:
(i) Divert or attempt to divert any business or customer of the Franchised Business to any Competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
(ii) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations, or joint ventures), advise, assist, or make loans to, any Competitor that is, or is intended to be, located within, or within a 25 mile radius of, the Territory or the territory of any BATH TUNE-UP® business in existence or under development as of the expiration date.
For purposes of this section, "expiration date" is the date that this Agreement expires without renewal or is terminated (regardless of the reason for termination), or that Franchisee transfers all of its interest in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, a franchisee is subject to a non-compete period of two years following the expiration date of their franchise agreement. During this two-year period, the franchisee is restricted from engaging in activities that could harm the goodwill associated with the Bath Tune Up brand and system. Specifically, the franchisee cannot divert or attempt to divert any business or customers of the franchised business to a competitor.
This restriction means that for two years after the franchise agreement ends, a former Bath Tune Up franchisee cannot directly or indirectly solicit or take away customers from their former Bath Tune Up business. This includes actions that could be detrimental to the brand's reputation. The "expiration date" is defined as the date the agreement expires without renewal, is terminated for any reason, or when the franchisee transfers their interest in the agreement.
In addition to the restrictions on diverting customers, the franchisee is also prohibited from owning, operating, or having a financial interest in any competing business within a 25-mile radius of their former Bath Tune Up territory or any other existing or developing Bath Tune Up location. This includes involvement as an owner, operator, advisor, or lender to a competing business. This non-compete provision is designed to protect Bath Tune Up's market share and prevent former franchisees from using the brand's confidential information and business model to compete against the franchise system after their agreement concludes.