Does a Bath Tune Up franchisee's territorial protection depend upon the volume?

According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee's territorial protection is not dependent on sales volume or market penetration. The franchise agreement specifies that Bath Tune Up grants franchisees a protected territory where the company will not establish another franchised business that sells and installs bath improvements using their system and marks.

However, this territorial protection is subject to several exceptions. Bath Tune Up retains the right to operate similar businesses under different trade names and marks within the franchisee's territory. They can also sell bath improvement components through other channels that don't involve both the system and the marks, such as internet sales or direct marketing. Additionally, Bath Tune Up may negotiate agreements with Key Accounts that span multiple territories, potentially impacting a franchisee's business.

While franchisees are generally prohibited from operating in other franchisees' territories, Bath Tune Up does not guarantee that other franchisees will not breach their agreements and conduct business in another's territory. The company also has the right to make sales within a franchisee's territory through the internet, catalog sales, or direct marketing without compensating the franchisee. These factors highlight that while a protected territory is granted, it is subject to various limitations and potential competition from both the franchisor and other franchisees.