Can a Bath Tune Up franchisee choose whether or not to service a particular Key Account?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We may negotiate agreements with Key Accounts, such as commercial customers that have multiple sites, offices, or retail premises across two or more territories. We may charge you a reasonable percentage of the job or a fee in return for Key Account referrals. We anticipate such charge will approximate 5% to 10% of the job. If you wish to service Key Accounts in your Territory as our subcontractor, you must sign our then-current Master Services Agreement which shall govern all work performed by you for Key Accounts. You may choose whether to service any particular Key Account on a case by case basis. If you choose to opt out with respect to any Key Account in your Territory, we may subcontract with other franchisees or third parties to service the Key Account.
If we establish a Company-Owned Operation (COO) in the future, a COO may contract with Significant Key Accounts. A Significant Key Account is one that requires such a substantial capital investment in product, or such complexity or volume of work, that a single franchisee cannot practicably perform the work required. In such cases, COO may contract with the Significant Key Account for its own account and underwrite the product purchase, offering you the opportunity to perform some or all of the installation services as COO's subcontractor, for reasonable compensation. If necessary, a COO may also subcontract with other franchisees or third parties to service the Significant Key Account in the territory without compensation to you.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees have the option to decide whether or not to service a specific Key Account on a case-by-case basis within their territory. Key Accounts are commercial customers with multiple locations across different territories. If a franchisee chooses to service Key Accounts, they must sign Bath Tune Up's Master Services Agreement, which governs all work performed for these accounts.
However, if a Bath Tune Up franchisee opts out of servicing a Key Account within their territory, Bath Tune Up reserves the right to subcontract the work to other franchisees or third parties. Bath Tune Up may charge franchisees a percentage of the job or a fee for Key Account referrals, which is anticipated to be approximately 5% to 10% of the job.
Bath Tune Up also has the right to establish Company-Owned Operations (COO) that may contract with Significant Key Accounts, defined as those requiring substantial capital investment or complex work beyond the capacity of a single franchisee. In such cases, the COO may offer the franchisee the opportunity to perform installation services as a subcontractor for reasonable compensation. If necessary, the COO may also subcontract with other franchisees or third parties to service the Significant Key Account in the territory without compensating the original franchisee.