In a Bath Tune Up franchise transfer, what documentation is the existing franchisee required to sign?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Existing Franchisee shall sign all documentation deemed necessary by Franchisor to transfer the Franchise to New Franchisee.
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- New Franchisee shall sign Franchisor's current form of franchise agreement for a new ten (10) year term. Upon signing of the current form of franchise agreement by New Franchisee, the Franchise Agreement shall be terminated and superseded by the franchise agreement signed pursuant to this Section 7.
- (a) As consideration for Franchisor and New Franchisee to enter into this Consent and Assumption, Existing Franchisee shall refrain from, either directly or indirectly, for {itself or himself or herself or themselves} or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or other entity, within the Territory, and from the date of this Agreement through :
- (i) Diverting or attempting to divert any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or doing or performing, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's Marks and the System (as that term is defined in the Franchise Agreement);
- (ii) Employing or seeking to employ any person who is at that time employed by Franchisor, affiliates of Franchisor, or by any other franchisee or licensee of Franchisor, including but not limited to New Franchisee, or otherwise directly or indirectly inducing or seeking to induce such person to leave his or her employment thereat; or
Within the Territory and within a twenty five (25) mile radius of any business licensed or operated by Franchisor in existence or under development as at the Transfer Date owning, maintaining, engaging in, or having any interest in any business (including any business operated by Existing Franchisee prior to entry into this Agreement) specializing, in whole or in part, in the retail and/ or installation of window coverings, or providing the same or similar goods or services provided, sold, or offered through the System.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, an existing franchisee transferring their franchise must sign all documentation deemed necessary by the franchisor to complete the transfer to the new franchisee. This requirement ensures that Bath Tune Up maintains control over the transfer process and that all necessary legal and contractual obligations are met.
Additionally, the existing franchisee is obligated to transfer physical possession of the Confidential Operating Manual, along with all items required by the Franchise Agreement. This includes books, manuals, financial records, receipts, invoices, and documents related to the franchised business, as well as any materials containing Bath Tune Up's marks. This ensures the new franchisee receives all necessary operational and brand-related resources.
Furthermore, upon the transfer date, the existing franchisee must cease operating under the Franchise Agreement and comply with all termination provisions outlined in Article 12 of the agreement. This includes stopping all use of Bath Tune Up's marks. The franchise relationship between the existing franchisee and Bath Tune Up is terminated and superseded by the Consent and Assumption agreement, with all obligations being assumed by the new franchisee. The existing franchisee also waives all rights to relief from forfeiture under California law, acknowledging that no franchise agreement remains between them and Bath Tune Up.
Finally, Bath Tune Up will be provided with a copy of the written sales agreement made between the existing franchisee and the new franchisee. The existing franchisee must also sign a Consent and Assumption agreement, which includes covenants such as refraining from diverting business or customers to competitors, employing individuals employed by Bath Tune Up or its franchisees, and engaging in similar businesses within the territory or a 25-mile radius of any Bath Tune Up business.