What happens if a Bath Tune Up franchisee fails to obtain the required insurance?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
ill 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. At any time after the Effective Date, but before the Operating Date, Franchisee must purchase or lease at Franchisee's expense a motor vehicle or motor vehicle and enclosed trailer meeting Franchisor's standards, as set forth in the Manuals (a "Vehicle") for use in the Franchised Business. At its expense, Franchisee must affix Franchisor's approved vehicle signage to the Vehicle in accordance with the specifications of Franchisor as described in the Manuals and provide a photograph of the fully wrapped Vehicle. Any subsequent modifications to the Mark and distinctive logo on the side of the Vehicle will be at Franchisee's expense. Franchisee will be responsible for all operating and other expenses associated with the Vehicle. Franchisee will deliver to Franchisor a copy of the bill of sale or lease for the Vehicle within ten days after Franchisee purchases or leases it. Franchisee must at all times maintain a policy of comprehensive liability insurance that meets specifications stated in the Manuals with Franchisor
as an additional named insured.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are required to maintain comprehensive liability insurance that meets the specifications outlined in the manuals, with Bath Tune Up named as an additional insured. This insurance requirement remains in effect as long as the franchisee uses the vehicle in any business operating under the fictitious business names.
This requirement is tied to the use of a vehicle in the Bath Tune Up business. The franchisee must purchase or lease a vehicle that meets Bath Tune Up's standards and affix the franchisor's approved vehicle signage. A copy of the bill of sale or lease for the vehicle must be delivered to Bath Tune Up within ten days of purchase or lease.
If the franchise agreement is terminated for any reason, the franchisee must immediately remove the Bath Tune Up name, logo, and any other marks from the vehicle and cease any further use of that name, logo, and marks. The FDD does not explicitly state the consequences of failing to obtain or maintain the required insurance, but it is common practice that failure to maintain proper insurance coverage constitutes a breach of the franchise agreement, potentially leading to penalties, or even termination of the franchise agreement.