What is the Bath Tune Up franchisee acknowledging regarding the non-compete covenants?

According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees acknowledge several key points regarding potential conflicts and limitations related to the brand name and territory. Specifically, the franchisee acknowledges that other businesses may already be using the "BATH TUNE-UP®" name, even if they are not affiliated with the franchisor. It is the franchisee's responsibility to investigate and determine if such prior use exists within their territory.

Furthermore, as part of the agreement, the franchisee waives any claims against the franchisor for damages or losses resulting from these prior uses of the name. This means that if another business is already operating under the "BATH TUNE-UP®" name in the franchisee's territory, the franchisee cannot hold the franchisor liable for any resulting financial impact. However, this waiver does not limit either party's obligations under Section 6.6 of the agreement, which may cover other aspects of the franchise relationship.

This acknowledgement highlights the importance of conducting thorough due diligence before signing the franchise agreement. Prospective Bath Tune Up franchisees should consult with local counsel and conduct a comprehensive search to identify any existing businesses using the same or similar names in their desired territory. Understanding these potential conflicts and limitations is crucial for making an informed decision about investing in a Bath Tune Up franchise.