Is a Bath Tune Up franchisee permitted to contract with Key Accounts?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee may not contract with Key Accounts. Franchisee agrees that, from time to time, Franchisor may enter into agreements with Key Accounts that contemplate performance in multiple territories, including the Territory, of sales and/or installations of Bath Improvements. If Franchisee wishes to service Key Accounts in the Territory as Franchisor's subcontractor, it shall sign Franchisor's then-
current Master Services Agreement which shall govern all work performed by Franchisee for Key Accounts. Franchisee may choose whether to service any particular Key Account on a case by case basis. If Franchisee chooses to opt out with respect to any Key Account in the Territory, or if Franchisee fails to provide sales, installations, or other services to a particular Key Account in the Territory on any two occasions in a 12-month period, Franchisor may provide or grant others the right to provide sales, installations, or other services with respect to that particular Key Account in the Territory for the remainder of the term.
A customer in the Territory with a job that is too large for Franchisee to undertake or that Franchisee chooses not to service shall be deemed to be a Key Account for purposes of this Section 2.2(b) even if that Key Account is limited to the Territory.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are generally prohibited from directly contracting with Key Accounts. However, Bath Tune Up may enter into agreements with Key Accounts for services spanning multiple territories, including the franchisee's territory. In such cases, a franchisee can potentially participate by signing Bath Tune Up's Master Services Agreement to act as a subcontractor for these Key Accounts.
A Bath Tune Up franchisee has the option to accept or decline specific Key Account jobs on a case-by-case basis. However, if a franchisee opts out of servicing a Key Account or fails to provide services to a Key Account on two occasions within a 12-month period, Bath Tune Up reserves the right to assign that Key Account to another franchisee or service it directly for the remainder of the term.
Furthermore, any customer within the franchisee's territory whose job is deemed too large or is declined by the franchisee is also classified as a Key Account. This designation allows Bath Tune Up to manage these larger projects independently, even if the Key Account is located within the franchisee's exclusive territory.