Is a Bath Tune Up franchisee required to obtain covenants from their Manager?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
quipment, tools, supplies and inventory for use by Franchisee and sources for purchasing such items.
7.11. Initial Promotion and Advertising
Franchisor shall assist Franchisee in developing the pre-opening, and initial post-opening promotion of the Franchised Business. Franchisor will, from time to time, provide Franchisee with promotional and advertising information.
8. OPERATION OF BUSINESS
8.1. Franchisee Operational Requirements
- (a) Manager. Franchisee will employ or engage the services of, on a full time basis, at least one Manager who will devote his or her entire time and attention during normal business hours, as defined in the Manuals, to the management, operation, and development of the Franchised Business in a manner that maximizes Gross Revenue consistent with sound marketing and business practices and will not engage in any other business activity requiring his or her active participation during normal business hours.
- (b) Vehicle.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Bath Tune-Up franchise agreement outlines the operational requirements for franchisees, including the employment of a Manager. According to section 8.1(a), a Bath Tune Up franchisee is required to employ or engage the services of at least one Manager on a full-time basis. This Manager must devote their entire time and attention during normal business hours to the management, operation, and development of the Franchised Business. The goal is to maximize Gross Revenue while adhering to sound marketing and business practices. The Manager should not engage in any other business activity that requires their active participation during normal business hours. However, the FDD does not explicitly state that a franchisee is required to obtain covenants from their Manager.
While the FDD specifies the role and responsibilities of the Manager, it does not mention any requirement for the franchisee to obtain specific covenants, such as non-compete or confidentiality agreements, from the Manager. It is common practice in franchising to have managers sign agreements that protect the franchisor's and franchisee's interests, especially concerning confidential information and competitive activities. The Bath Tune-Up FDD does mention that the franchisee may utilize certain of Franchisor's confidential information and proprietary materials, including the Manuals, when conducting training but only to the extent necessary to conduct such training and only pursuant to Franchisor's confidentiality terms and conditions.
Given the absence of a direct requirement for covenants in the FDD, prospective Bath Tune Up franchisees should seek clarification from the franchisor regarding whether such covenants are expected or recommended. Understanding the franchisor's expectations regarding Manager agreements is crucial for protecting the franchisee's business interests and ensuring compliance with the franchise agreement. It would be prudent for a potential franchisee to discuss this matter with the franchisor and possibly consult with legal counsel to determine the best course of action for their specific situation.