What is the maximum administrative fee that Bath Tune Up can take from the National Advertising Fund?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund may not be used to defray any of Franchisor's general operating expenses, except for any reasonable salaries that Franchisor may incur in activities reasonably related to the Fund's advertising and promotional programs (including, without limitation, conducting market research, managing programs supported by the Fund, and retaining outside agencies), and an administrative fee of 15% of the annual aggregate National Advertising Fees received by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the franchisor can take an administrative fee from the National Advertising Fund. This fee is capped at 15% of the total annual National Advertising Fees collected by Bath Tune Up.
This means that if Bath Tune Up collects $100,000 in National Advertising Fees in a year, the maximum administrative fee they can take is $15,000. The remaining funds must be used for advertising and promotional activities to benefit the Bath Tune Up system.
It is important to note that the FDD specifies that the National Advertising Fund cannot be used for Bath Tune Up's general operating expenses, except for reasonable salaries related to advertising and promotional programs. This administrative fee is intended to cover the costs associated with managing the fund and its related activities.