Does Bath Tune Up grant franchisees an exclusive territory?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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Total Pages: 212
ITEM 12. TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
During the term of the Franchise Agreement, we will grant you a protected territory. We will not establish another franchised business in your Territory that sells and installs Bath Improvements using our System and Marks. Franchisees are prohibited from doing business in the contracted territory of other franchisees, however, we cannot guarantee that another franchisee will not breach the franchise agreement and do business in your Territory. Your Territory will be described by United States Postal Service ZIP Codes in your franchise agreement. Each territory will begin with about 41,000 households. The ZIP codes making up your territory will not change even if their boundaries are expanded or contracted by the Postal Service or if the population within them decreases or increases.
We may negotiate agreements with Key Accounts, such as commercial customers that have multiple sites, offices, or retail premises across two or more territories. We may charge you a reasonable percentage of the job or a fee in return for Key Account referrals. We anticipate such charge will approximate 5% to 10% of the job. If you wish to service Key Accounts in your Territory as our subcontractor, you must sign our then-current Master Services Agreement which shall govern all work performed by you for Key Accounts. You may choose whether to service any particular Key Account on a case by case basis. If you choose to opt out with respect to any Key Account in your Territory, we may subcontract with other franchisees or third parties to service the Key Account.
If we establish a Company-Owned Operation (COO) in the future, a COO may contract with Significant Key Accounts. A Significant Key Account is one that requires such a substantial capital investment in product, or such complexity or volume of work, that a single franchisee cannot practicably perform the work required. In such cases, COO may contract with the Significant Key Account for its own account and underwrite the product purchase, offering you the opportunity to perform some or all of the installation services as COO's subcontractor, for reasonable compensation. If necessary, a COO may also subcontract with other franchisees or third parties to service the Significant Key Account in the territory without compensation to you.
We may also, in the future, arrange other referral programs, such as web site referral programs, under which you pay fees to referral sources in return for business in your Territory. We will give you information about these programs as they are developed and you may decide whether to opt out of them. If you do not expressly opt out of a referral program, you will be considered to have opted in. This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
You must promote, market, and engage in the Franchised Business diligently and effectively, develop to the best of your ability the potential of the Franchised Business within your Territory, and devote and focus your full time attention and efforts to its promotion and development.
You may not relocate your Territory without our consent. You do not need our approval for the location of your Franchised Business within your Territory, but if you decide to have a retail showroom our prior written approval is required and it must be located at least one mile within the borders of your Territory.
Because the Franchised Business consists of the sale and related installations of Bath Improvements within your Territory, alternative means of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing media, used to generate sales without performing installations, whether they are directed to customers inside or outside your Territory, are not permitted without our prior consent.
You may not use the Internet to solicit business except as described in Sections 6.8 (Use of Marks in Social Media) and 8.11(d) (Franchisor's Web Site) of the franchise agreement.
Source: Item 12 — TERRITORY (FDD pages 34–36)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, Bath Tune Up does grant a protected territory where it will not establish another franchised business that sells and installs Bath Improvements using its System and Marks. The territory is defined by United States Postal Service ZIP Codes, starting with approximately 41,000 households. The ZIP codes will not change even if their boundaries or population change.
Even with a protected territory, franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Bath Tune Up. Bath Tune Up retains the right to establish businesses similar to the franchised business under different trade names and marks within the franchisee's territory without compensation, although they state they have no current plans to do so. Bath Tune Up and its affiliates can also manufacture and sell bath improvement components to other retailers and wholesalers under different trademarks, sell these components at retail without custom measuring or installation under different trademarks, and engage in other business activities that do not involve both the System and the Marks.
Bath Tune Up also retains the right to make sales within the franchisee's territory through the Internet, catalog sales, direct marketing, or any other means that do not involve both the sale and installation of Bath Improvements, without compensating the franchisee. The document indicates that Bath Tune Up may introduce e-commerce capabilities in the future, which franchisees will be required to participate in. Franchisees are prohibited from doing business in other franchisees' contracted territories, but Bath Tune Up cannot guarantee that other franchisees will not breach their agreements.
Furthermore, Bath Tune Up may negotiate agreements with Key Accounts that have multiple locations across different territories and may charge the franchisee a percentage of the job (approximately 5% to 10%) for Key Account referrals. If a franchisee wishes to service Key Accounts in their territory as a subcontractor, they must sign Bath Tune Up's Master Services Agreement. The franchisee can choose whether to service any particular Key Account, but if they opt out, Bath Tune Up may subcontract with other franchisees or third parties. The franchisee cannot relocate their territory without Bath Tune Up's consent and needs written approval for a retail showroom within the territory if it is not at least one mile within the borders of the territory.
In summary, while Bath Tune Up provides a protected territory, it retains significant rights to operate and compete within that territory through various channels and agreements, which could impact a franchisee's potential market share and revenue. A prospective franchisee should carefully consider these factors and seek clarification from Bath Tune Up regarding their specific plans for these alternative channels and Key Account management.