How many days does a Bath Tune Up franchisee have to discharge a levy of signing on the franchise?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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 I
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the initial franchise fee and the territory fee are both payable upon signing the franchise agreement. Specifically, Section 4.1 states that the initial franchise fee of $16,958 is due concurrently with the franchisee's signing of the agreement. Similarly, Section 4.2 indicates that the territory fee of $38,250 is also due concurrently with the signing of the agreement.
This means a prospective Bath Tune Up franchisee must have the funds readily available at the time of signing the franchise agreement. There is no provision for a delayed payment schedule or installment plan for these initial fees. This immediate payment requirement is a standard practice in franchising, as it secures the franchisee's commitment and provides the franchisor with initial capital to begin the onboarding process.
Failure to pay these fees at the time of signing would likely constitute a breach of contract, potentially delaying or voiding the franchise agreement. Therefore, it is crucial for potential franchisees to ensure they have the necessary capital in advance to meet this obligation.