What happens when a reassessment of a lease results in the re-measurement of a lease liability for Bath Tune Up?

According to the 2025 FDD, Bath Tune Up monitors for events or changes in circumstances that require reassessment of lease classification. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the lease asset.

For a Bath Tune Up franchisee, this means that if there are changes to the lease terms or conditions that require a re-measurement of the lease liability, the value of the lease asset will be adjusted accordingly. This could occur due to changes in market conditions, renegotiation of lease terms, or other factors that impact the lease liability.

This policy ensures that the financial statements accurately reflect the current value of the lease assets and liabilities. It's important for franchisees to understand how lease reassessments can impact their financial position and to maintain accurate records of all lease-related information.