If Bath Tune Up requests, is a franchisee required to participate in Electronic Commerce?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
8.13. Electronic Commerce
Franchisor may, at its sole option, use Franchisor's Web site or another Web site created for the purpose, to engage in "Electronic Commerce." The term "Electronic Commerce" means offering and selling merchandise and services associated with the Marks, and receiving and accepting orders and payment for that merchandise and services, directly or indirectly, through any means of electronic communication, including receiving and accepting orders over the Internet. Upon Franchisor's request, Franchisee will be required to participate in Electronic Commerce and will sign Franchisor's then-current electronic commerce participation agreement, which will, among other things: (i) state the terms on which Franchisee and Franchisor will share program revenues and expenses, (ii) authorize Franchisor, from time to time, to establish, and thereafter modify, procedures, policies, protocols, and standards and specifications that govern Electronic Commerce and use of end-user information, (iii) require specified computer (hardware and software) and communications equipment, and (iv) authorize Franchisor to disable or terminate endusers' ability to place orders or schedule appointments with Franchisee during any period that Franchisee is in breach of this Agreement or any other agreement with Franchisor or its Affiliates.
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 participate in Electronic Commerce if the franchisor requests it. Electronic Commerce involves offering and selling merchandise and services associated with Bath Tune Up's marks through electronic communication, including the internet.
If Bath Tune Up requests a franchisee's participation, the franchisee must sign the franchisor's electronic commerce participation agreement. This agreement will detail the terms for sharing program revenues and expenses between the franchisee and franchisor. It also grants the franchisor the authority to modify procedures, policies, protocols, and standards governing electronic commerce and the use of end-user information.
Furthermore, the agreement will specify the necessary computer hardware, software, and communications equipment required for participation. It also allows Bath Tune Up to disable or terminate end-users' ability to place orders or schedule appointments with the franchisee if the franchisee breaches the franchise agreement or any other agreement with the franchisor or its affiliates. This means that participation in electronic commerce is not optional if requested by Bath Tune Up, and it comes with specific requirements and potential consequences for non-compliance.