For Bath Tune Up, what are some examples of costs that are directly attributable to obtaining a contract?

According to Bath Tune Up's 2025 Franchise Disclosure Document, costs directly attributable to obtaining a contract include broker fees, referral fees, and training fees. These costs are recognized once Bath Tune Up has substantially performed its material contractual obligations, which typically means upon completion of training.

For a prospective Bath Tune Up franchisee, this means that certain upfront costs like broker and referral fees, which may be incurred to connect the franchisee with the opportunity, as well as the training fees required to get the franchisee up to speed, are considered costs of obtaining the franchise contract. Bath Tune Up recognizes these expenses for accounting purposes only after they have fulfilled their obligations, primarily the training.

This accounting practice is important for franchisees to understand because it affects how Bath Tune Up's financial performance is reported. It also highlights that Bath Tune Up views training as a key element of fulfilling its initial obligations to the franchisee. Franchisees should ensure they fully understand what is included in the training program and what other obligations Bath Tune Up must fulfill before these costs are formally recognized.