Will a Bath Tune Up franchisee be compensated for referring customers to other franchisees' territories?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
To ensure no sales are made in the territories of other franchisees and to avoid misunderstandings when customers are quoted a price for Products that are different than the prices of other franchisees, Franchisee must as a preliminary matter first determine if the customer is from another franchisee's contracted territory. If so, Franchisee must refer the customer to the franchisee in whose territory the customer is located and provide such franchisee's name and contact information and must not quote any prices, sales terms or other information to the customer. Franchisee will not be compensated for these referrals but will provide them as a means to protect the goodwill of the BATH TUNE-UP® brand and the Marks.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are not compensated for referring customers to other franchisees' territories. The FDD specifies that if a customer is from another franchisee's territory, the franchisee must refer the customer to the correct franchisee, providing their name and contact information, and must not quote any prices or sales terms.
This referral process is in place to prevent sales from occurring in other franchisees' territories and to avoid misunderstandings related to price differences. Bath Tune Up franchisees are expected to make these referrals to protect the goodwill of the Bath Tune Up brand and its trademarks.
While franchisees are not directly compensated for these referrals, there is a reciprocal arrangement for leads generated through joint marketing efforts. If a franchisee declines to participate in joint marketing, the participating franchisee must offer any leads generated in the non-participating franchisee's territory on reasonable terms, including maximum lead fees per referral, as specified in the manuals. This creates a potential indirect benefit for franchisees who may receive leads from other franchisees' marketing efforts.