Is a Bath Tune Up franchisee allowed to advertise in a Gray Area?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
ot intentionally direct your advertising or marketing at customers in other franchisees' territories. You must obtain our prior written approval before selling Bath Improvements for installation in unassigned Gray Area outside your assigned Territory. Generally, we will grant permission for you to operate in Gray Area. The Bath Improvements you sell must be installed in buildings located in your Territory or, with our consent, in Gray Area.
If we give you permission to operate in Gray Area, we have the right to sell or assign it, or part of it, at any time, without notice to you. You will not have a right of first refusal or option to buy a territory that was formerly designated as Gray Area.
Although we will not grant anyone else the right to operate in your territory, except as described above and in section 2.2(b) of the franchise agreement or the joint marketing provisions contained in section 2.2(c) of the franchise agreement, we do not promise that another franchisee will not violate his or her franchise agreement and conduct business in your territory.
You may increase your territory only by entering into a franchise agreement for an available additional territory. An additional territory must generally be contiguous or close to your first territory.
Source: Item 16 — RESTRICTION ON WHAT FRANCHISEE MAY SELL (FDD pages 37–38)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee must obtain prior written approval before selling Bath Improvements for installation in an unassigned Gray Area outside their assigned territory. Generally, Bath Tune Up will grant permission for the franchisee to operate in a Gray Area. However, Bath Tune Up retains the right to sell or assign the Gray Area, or part of it, at any time, without notice to the franchisee. The franchisee does not have a right of first refusal or option to buy a territory that was formerly designated as a Gray Area.
Bath Tune Up may also direct the franchisee to cease all marketing activities in any Gray Area, regardless of whether the Gray Area has been sold to another franchisee. After receiving a notice to cease marketing, the franchisee has a maximum of 30 days to complete installations for orders completed before the notice was given.
In practical terms, this means that while a Bath Tune Up franchisee may be allowed to operate and advertise in a Gray Area with permission, this permission can be revoked at any time. This creates a risk for the franchisee, as they could invest time and resources into marketing in a Gray Area only to have their ability to operate there terminated without notice. Prospective franchisees should carefully consider this risk and inquire about the potential for Gray Areas in their market and the conditions under which permission to operate in those areas may be granted or revoked.