Is the Initial Territory Fee for a Bath Tune Up franchise refundable?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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.
4.2. Territory Fee
I
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the Initial Territory Fee is not refundable. Specifically, if a franchisee is purchasing their territory directly from Bath Tune Up, they must pay a Territory Fee of $45,000 upon signing the agreement. This fee is payable in a lump sum and is explicitly stated as non-refundable.
This policy means that a prospective Bath Tune Up franchisee should be certain of their decision before signing the agreement and paying the Territory Fee, as they will not be able to recover this money should they later decide not to proceed with the franchise. This is a standard practice in franchising, as the franchisor incurs costs in evaluating and setting up a new franchisee.
It is important to note that Bath Tune Up offers a 15% discount on the Initial Territory Fee for veterans, active service members, and their spouses, reducing the fee to $38,250. However, even with this discount, the fee remains non-refundable. Franchisees should carefully consider their financial situation and business plan before committing to this investment, as it represents a significant upfront cost that cannot be recovered if the venture is not successful.