Does the Bath Tune Up Franchise Disclosure Document need to be registered in California?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered or exempt from registration, as of the Effective Date stated below:
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the document must be registered or filed in California. Item 23 includes an exhibit that lists states with franchise laws requiring registration or filing of the FDD, and California is among those states. Additionally, Item 20 states that registrations are effective or proposed registrations will shortly be on file in California.
This registration requirement means that Bath Tune Up has taken steps to comply with California's franchise laws, which are designed to protect prospective franchisees. The California Department of Financial Protection and Innovation reviews the FDD to ensure it meets the state's requirements for disclosure of important information. However, the FDD explicitly states that registration does not constitute approval, recommendation, or endorsement by the commissioner.
Furthermore, the California-specific addenda to the Bath Tune Up Franchise Disclosure Document outline several important legal considerations for franchisees operating in California. These include the applicability of the California Franchise Relations Act, potential unenforceability of certain provisions regarding termination upon bankruptcy and covenants not to compete, and the requirement for a special disclosure document before material modifications to an existing franchise. These addenda also highlight potential conflicts between the franchise agreement and California labor laws, specifically Assembly Bill 5 (AB5), which governs the classification of workers as employees or independent contractors.
Prospective Bath Tune Up franchisees in California should carefully review these state-specific addenda and consult with legal counsel to understand their rights and obligations under California law. They should also be aware that certain provisions in the franchise agreement may not be enforceable in California due to state-specific regulations. The FDD also mentions that the website has not been reviewed or approved by the California Department of Financial Protection and Innovation, and any complaints about the website's content can be directed to the California Department of Financial Protection and Innovation.