Is a Bath Tune Up franchisee allowed to assist a competitor during the term of the agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) In consideration for this specialized training, trade secrets, confidential information, and rights, Franchisee covenants that, except as otherwise approved in writing by Franchisor, Franchisee will not during the Term, either directly or indirectly, for itself or through, on behalf of, or in conjunction with any people, partnership, or corporation:
(ii) Own, maintain, operate, engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts, unincorporated associations, or joint ventures), advise, assist, or make loans to, any Competitor located within the United States, its territories or commonwealths, or any other country, province, state, or geographic area in which Franchisor has used, sought registration of, or registered the Marks or similar marks, or operates or licenses others to operate a business under the Marks or similar marks.
For purposes of this Agreement, a "Competitor" is a business that derives revenues from the direct or indirect retail sale of Bath Improvements or services or other products or services similar to those sold by the Franchisor or any of its franchisees.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee is restricted from assisting competitors during the term of the agreement. Specifically, unless approved in writing by Bath Tune Up, a franchisee cannot advise, assist, or make loans to any competitor. This restriction applies to any competitor located within the United States, its territories, or any area where Bath Tune Up has used, sought registration of, or registered its trademarks, or operates or licenses others to operate under its trademarks.
For the purposes of the agreement, a "Competitor" is defined as any business that generates revenue from the direct or indirect retail sale of bath improvements, services, or other similar products and services offered by Bath Tune Up or its franchisees. This definition is broad, encompassing a wide range of businesses that could be considered competitive.
This restriction is in place to protect Bath Tune Up's market position, trade secrets, and confidential information. By preventing franchisees from supporting competing businesses, Bath Tune Up aims to maintain the integrity of its brand and the competitiveness of its franchise system. Franchisees should be aware that violating this clause could result in legal action or termination of the franchise agreement.