If the Bath Tune Up franchisee is a partnership, are all partners bound by the franchise agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
An "Affiliate" of Franchisor or Franchisee, as the case may be, means all people in the following categories when they are conducting business activities related to Franchisor or Franchisee: (a) all people who Control, are Controlled by, or are under common Control with, Franchisor or Franchisee, (b) all direct or indirect shareholders, partners, members, or owners of Franchisor or Franchisee, regardless whether they Control Franchisor or Franchisee, and (c) all officers, directors, employees, and agents of Franchisor or Franchisee and of Franchisor's or Franchisee's other Affiliates.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
Based on the 2025 Bath Tune Up Franchise Disclosure Document, the definition of "Affiliate" includes all partners of the franchisee, regardless of whether they control the franchisee. This means that all partners in a Bath Tune Up franchise would be considered affiliates.
As affiliates, all partners are subject to the terms and conditions outlined in the franchise agreement to the extent their business activities are related to the Bath Tune Up franchise. This ensures that all individuals with an ownership stake in the franchise are bound by the agreement's provisions, maintaining consistency and protecting the Bath Tune Up brand.
Prospective franchisees entering a partnership should carefully review the franchise agreement and understand how its terms apply to all partners involved. It is advisable to consult with legal counsel to fully comprehend the obligations and responsibilities of each partner under the agreement.