What is the maximum transfer fee charged by Bath Tune Up when selling to a new franchisee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Fees on Transfer3 | If selling to a new franchisee, greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory. | Before transfer | Payable when you sell your franchise. No charge if your franchise is assigned to a corporation or similar entity that you control. |
Source: Item 6 — OTHER FEES (FDD pages 15–19)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the transfer fee when selling to a new franchisee is the greater of $24,950 or 6% of the sale price, with a maximum fee of $50,000. This fee is due before the transfer is completed.
This means that if a franchisee decides to sell their Bath Tune Up franchise to someone who is not already a franchisee within the system, Bath Tune Up will collect a transfer fee. The fee is calculated as either a fixed amount or a percentage of the sale price, whichever is higher, but it will not exceed $50,000.
It's important to note that there is no transfer fee if the franchise is assigned to a corporation or similar entity that the franchisee controls. This provides an exception for internal restructuring or ownership changes within the franchisee's existing business structure. Prospective franchisees should consider this transfer fee when evaluating the potential resale value of a Bath Tune Up franchise.