If Bath Tune Up offers an alternative remedy to termination, what options does the franchisee have?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's right to terminate this Agreement or requires longer notice periods than those stated in this Agreement, and if the parties are prohibited by law from agreeing to the shorter periods stated in this Agreement, then Franchisor will conform to the requirements of those laws and regulations, but only to the
extent necessary to bring Franchisor's actions within the requirements of the law or regulation.
10.6. Alternative Remedies
In those circumstances under which Franchisor may terminate this Agreement, Franchisor may in its sole discretion: (a) redirect customer leads generated by Franchisor on Franchisee's behalf to other franchisees as contemplated in section 2.2(d); and/or (b) grant to Franchisee, in lieu of immediate termination of this Agreement, (i) an extended period of time (not to exceed six months from the last day of the cure period otherwise applicable to the breach) to cure the breach which gave rise to Franchisor's right to terminate, (ii) an option to reimburse Franchisor up to $1,000 for investigating the breach of this Agreement, or (iii) if the breach consists of the offer or sale of Bath Improvements in the territory assigned to another franchisee of Franchisor, require Franchisee to pay, as liquidated damages, and not a penalty, an amount equal to 100% of the total gross sales gen
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, in circumstances where Bath Tune Up has the right to terminate the franchise agreement, they may choose alternative remedies at their discretion. These alternatives include redirecting customer leads generated by Bath Tune Up on behalf of the franchisee to other franchisees, as detailed in section 2.2(d) of the agreement. This means that instead of terminating the agreement, Bath Tune Up could temporarily divert potential customers to other franchisees in the network.
In lieu of immediate termination, Bath Tune Up may also grant the franchisee an extended period of time, up to six months from the original cure period, to correct the breach that led to the potential termination. Another option is to allow the franchisee to reimburse Bath Tune Up up to $1,000 to cover the costs of investigating the breach of the agreement.
Furthermore, if the breach involves the franchisee offering or selling Bath Improvement services in another franchisee's territory, Bath Tune Up can require the franchisee to pay liquidated damages. This amount would be equal to 100% of the total gross sales generated from those sales in the other franchisee's territory. These damages are not considered a penalty but are intended to compensate the other franchisee for the diverted business, including lost goodwill, and to cover Bath Tune Up's investigation costs. The document clarifies that if Bath Tune Up chooses to grant an extended cure period or permit reimbursement, it does not waive any other rights they have under the franchise agreement.