Why are initial fees and payments deferred for Bath Tune Up franchisees?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
---|-----------------|--------------|-----------|-------------------|--------|-------| | - | , 20 | 21 (' | "Effective I | Date"), between | een HF | C KTU, | LLC, a | ı De | laware 1 | imited | liabi | ility | | company ("F | ranchisor"), | and _ | | , a( | n) | | | _(" I | Franchis | e e "), to | o am | end | | a Franchise A | greement inte | ende | d to bear the | e same date as | s this A | ddendum | (the " I | Fran | ichise Ag | reeme | nt"), | , for | | a Territory in | the state of _ | | | known as | Bath T | une-Up | | | ( | ("Terri | itory' | "). | | | | | | | | | | | | | | |
This Addendum amends some of the provisions of the Franchise Agreement to reflect the agreement between the parties as to fees payable under the Franchise Agreement. Any capitalized terms that are defined in the Franchise Agreement are used in this Addendum as defined in the Franchise Agreements.
NOW, THEREFORE, the parties agree to amend the Franchise Agreement as follows:
- Initial Franchise Fee. Section 4.1 of the Franchise Agreement is amended as follows:
"Concurrently with Franchisee's signing of this Agreement, Franchisee will pay to Franchisor an "Initial Franchise Fee" of $16,958. Franchisee will receive the BATH TUNE-UP® Start-Up Package (listed in Schedule 3 to this Agreement) when the Initial Franchise Fee is paid in full. The Initial Franchise Fee is payable in a lump sum in lawful money of the United States of America upon signing of this Agreement by Franchisee. The Initial Franchise Fee is not refundable."
2. Territory Fee. Section 4.2 of the Franchise Agreement is amended as follo
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
Based on the 2025 Bath Tune Up Franchise Disclosure Document, there is no mention of deferred initial fees or payments for franchisees. The document specifies that the initial franchise fee and territory fee are payable in a lump sum upon signing the agreement.
Specifically, the initial franchise fee is $16,958, and the territory fee is $38,250. These fees are non-refundable and must be paid when the franchise agreement is signed. The franchisee receives the Bath Tune Up Start-Up Package once the initial franchise fee is paid in full.
Since the FDD does not provide information on deferred payments, it is important for potential franchisees to discuss payment options and any possible financing arrangements directly with the franchisor. Understanding the payment schedule and available resources is crucial for financial planning and ensuring a smooth transition into the Bath Tune Up franchise system.