What is the minimum monthly National Advertising Fee that a Bath Tune Up franchisee must pay?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
pay the following Royalty Fee each month for both territories combined:
| Continuing Royalty | Combined Gross Revenue for the Prior |
|---|
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are required to pay a National Advertising Fee. According to section 4.4(a) of the franchise agreement, the franchisee will pay the greater of 1% of the franchisee's monthly gross revenue for the previous month or $500. However, according to an addendum to the franchise agreement, franchisees will pay the greater of 1% of the franchisee's monthly gross revenue for the previous month or $750.
This fee contributes to the National Advertising Fund, which Bath Tune Up uses for national, regional, local, and other advertising and public relations programs. These initiatives are at the discretion of the franchisor and aim to promote and protect the Bath Tune Up system. The funds are used for website development, public relations, media costs, internet marketing, market research, and creative and production costs.
It's important to note that the National Advertising Fund is not a trust or escrow account, and Bath Tune Up has no fiduciary obligation to franchisees regarding the fund. Bath Tune Up has the right to determine the creative concepts, materials, endorsements, and media used in advertising programs, as well as the placement and allocation of these programs. Franchisees must also authorize Bath Tune Up to withdraw the National Advertising Fees directly from the franchisee's bank account.