What is the geographic limit on where a Bath Tune Up franchisee can provide sales and services?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
of Franchisor's other proprietary information in connection with any other businesses or services without the express prior written permission of the President or other executive officer of Franchisor, which permission, if granted, will bring the other businesses or services within the scope of the Franchised Business.
2.2. Limited Exclusivity
- (a) Except as provided in paragraphs (b), (c), (d) and (e) of this section, during the Term, Franchisor will not establish or operate within the Territory, or franchise any third party to establish or operate within the Territory, any other Bath Improvements business using the System and the Marks.
- (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.
- (c) Franchisee acknowledges that, from time to time, opportunities may arise to participate in joint marketing efforts with other BATH TUNE-UP® franchisees. If Franchisee is afforded the opportunity to participate in joint marketing efforts but declines to do so, the participating BATH TUNE-UP® franchisee must offer any leads for the Territory generated as a result of the joint marketing effort to Franchisee on reasonable terms and conditions (including maximum lead fees per referral) specified from time to time in the Manuals.
Source: Item 16 — RESTRICTION ON WHAT FRANCHISEE MAY SELL (FDD pages 37–38)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee's ability to provide sales and services is generally limited to their assigned territory. The franchisor will not establish or operate another Bath Improvements business or franchise another party to do so within the franchisee's territory during the term of the agreement. This grants the franchisee a limited exclusivity within their designated area.
However, there are exceptions to this exclusivity. Bath Tune Up franchisees may not contract with "Key Accounts," which are larger clients that the franchisor may service across multiple territories. If a franchisee wishes to service these Key Accounts within their territory, they must sign the franchisor's Master Services Agreement. The franchisee can choose whether or not to service a Key Account on a case-by-case basis. If the 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 may grant others the right to service that specific Key Account within the franchisee's territory.
Furthermore, franchisees must avoid making sales in other franchisees' territories. If a customer is from another franchisee's territory, the franchisee must refer the customer to the appropriate franchisee and refrain from quoting prices or sales terms. This is to protect the goodwill of the Bath Tune Up brand and the Marks. Franchisees are not compensated for these referrals.