What factors might Bath Tune Up consider when evaluating a proposed transfer of the franchise?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or any of its owners proposes to make any other form of Transfer, and if Franchisor elects not to exercise its right of first refusal (or if the right of first refusal is not applicable to the proposed Transfer, as provided in this Agreement), Franchisor may withhold or condition Franchisor's consent to any Transfer, as Franchisor deems appropriate, based on the circumstances of the Transfer or otherwise.
If Franchisor believes that the terms and conditions of any Transfer would not be in the best interests of the Franchisor, the proposed transferee or the BATH TUNE-UP® System, Franchisor may refuse to consent to such Transfer.
Without limitation, Franchisor may consider the effect that the Transfer and the prospective transferees will have or may reasonably be expected to have on the reputation or business operations of the Franchised Business, the Marks, or Franchisor, or any of Franchisor's Affiliates.
Additionally, it will not be unreasonable for Franchisor to impose, among other things, the following conditions precedent to its consent to any Transfer:
(i) The proposed assignee of the interest to be subjected to the Transfer will complete Franchisor's application for a franchise agreement, and Franchisee and the proposed assignee will fully disclose in writing all of the terms and conditions of the proposed Transfer.
(ii) The proposed assignee(s) of the interest to be subjected to the Transfer demonstrate(s) that it has or they have the skills, qualifications, and economic resources necessary, in Franchisor's reasonable judgment, to conduct the business contemplated by this Agreement.
Among other things, this may require the possession of certain skills and qualifications of the prospective transferee, including experience in or ability to learn the bathroom improvement business, financial and operational skills and qualifications, economic resources, reputation and character of the prospective transferees, and the ability of the prospective transferee(s) to fully and faithfully conduct the Franchised Business as contemplated by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the franchisor has broad discretion in approving franchise transfers. Bath Tune Up may withhold consent for any reason if a franchisee seeks to sublicense their interest in the agreement. For other types of transfers, Bath Tune Up may withhold or set conditions based on the specific circumstances.
Bath Tune Up may refuse a transfer if it believes the terms aren't in the best interest of the franchisor, the potential new franchisee, or the Bath Tune Up system as a whole. They will consider the potential impact of the transfer and the new franchisee on the reputation and operations of the franchise, the brand, and Bath Tune Up itself.
As conditions for approval, Bath Tune Up can require the proposed new franchisee to complete a franchise application and fully disclose all terms of the transfer in writing. The potential new franchisee must also demonstrate they possess the necessary skills, qualifications, and financial resources to operate the Bath Tune Up business successfully. This includes experience or the ability to learn the bathroom improvement business, financial and operational skills, sufficient economic resources, and a good reputation and character. Ultimately, Bath Tune Up seeks assurance that the new franchisee can fully and faithfully run the business according to the franchise agreement.