How much notice is required for the disposition of collateral under the Bath Tune Up agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If notice of disposition of Collateral is required by law, ten (10) days prior notice by Secured Party to Pledgor designating the time and place of any public sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be reasonable notice thereof and Pledgor waives any other notice.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, if notice of disposition of collateral is required by law, Bath Tune Up will provide ten days prior notice to the franchisee. This notice will designate the time and place of any public sale or the time after which any private sale or other intended disposition of collateral is to be made.
This ten-day notice is deemed reasonable, and the franchisee waives any other notice requirements. This means that if Bath Tune Up needs to sell off any assets (collateral) that you've pledged as security, they only need to give you a 10-day heads up if required by law.
It is important for a prospective franchisee to understand the circumstances under which collateral might be seized and sold, and to be aware of the limited notice period. Franchisees should consult with a legal professional to fully understand their rights and obligations regarding collateral and potential disposition.