What exhibit is the Bath Tune Up General Security Agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TITLE OF AGREEMENT | EXHIBIT/ SCHEDULE # | SIGNED BY |
|---|---|---|
| Franchise Agreement, State Addendum and Schedules | Exhibit A | You and us |
| Personal Covenant and Guarantee | Schedule 1 | All people having direct or indirect “Control”* over Franchisee or a direct or indirect beneficial ownership interest in Franchisee, including the spouse of Franchisee. |
| Consent to Transfer and Assumption of Franchise | Exhibit H | You, new franchisee and us |
| (includes Release of Claims) | ||
| Veteran’s Addendum to Franchise Agreement | Exhibit I | You (only if you are a veteran) and us |
| Secured Promissory Note | Exhibit J | You (Obligor) |
| General Security Agreement | Exhibit K | You (Pledgor) and us |
| Addendum to Franchise Agreement – Two Territories | Exhibit L | You (only if you purchase two territories) and us |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the General Security Agreement is identified as Exhibit K. This agreement is signed by the franchisee (Pledgor) and Bath Tune Up. A General Security Agreement is a legal document that grants a security interest to the franchisor in certain assets of the franchisee. This means that Bath Tune Up has a claim on those assets if the franchisee defaults on their obligations, such as loan payments or adherence to the franchise agreement terms.
For a prospective Bath Tune Up franchisee, understanding the implications of the General Security Agreement is crucial. It outlines which assets are subject to the security interest, the conditions under which Bath Tune Up can claim those assets, and the franchisee's rights and obligations. The agreement protects Bath Tune Up by providing a means of recovering losses if the franchisee fails to meet their financial or contractual obligations.
Franchisees should carefully review Exhibit K with a legal advisor to fully understand the scope of the security interest and the potential risks involved. This will help them make informed decisions about their assets and financial planning as they enter into the franchise agreement with Bath Tune Up. Knowing what assets are at risk and under what circumstances can help a franchisee mitigate potential financial risks and ensure they are prepared for various business scenarios.