What is the Bath Tune Up New Franchisee agreeing to regarding the Franchisor's guidelines?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) After the signing by Franchisee of a subsequent franchise agreement, and before the effective date of the new franchise agreement, Franchisee will bring its Franchised Business into full compliance with the standards then applicable to new BATH TUNE-UP® franchisees.
Franchisee may display and offer for sale all Products that have been approved for sale by franchisees of Franchisor. Unless otherwise approved in writing by Franchisor (which consent may be withheld arbitrarily or otherwise in Franchisor's sole discretion), Franchisee may not sell any products other than Products that have been approved for sale by all franchisees of Franchisor. Franchisee acknowledges that Franchisor may have other franchisees in the same general area of Franchisee's Showroom and that Franchisor may consider the interests of all franchisees in deciding whether to allow additional products to be sold from the Showroom.
- (c) The name "BATH TUNE-UP®" may be in use by other businesses in the United States who are not Franchisor's franchisees or in any way affiliated with Franchisor. Franchisee acknowledges that Franchisee is responsible for finding out whether the name "BATH TUNE-UP®" is already being used in the Territory. As a material part of the consideration for Franchisor's grant of a franchise to Franchisee, Franchisee waives any claim that Franchisor is liable to Franchisee for damages or losses resulting from any prior use of the name "BATH TUNE-UP®" by anyone else. Nothing in the preceding sentence, however, will be considered to limit a party's respective obligations under Section 6.6 below.
Unless the Initial Franchise Fee was waived under Section 4.1, immediately before the Operating Date, Franchisor will provide virtual training to two management representatives of Franchisee to educate, familiarize and acquaint Franchisee with the business of operating the Franchised Business. Franchisee must successfully complete the initial training program which includes virtual classroom and practical instruction regarding the technical aspects of operating the Franchised Business, basic business operating procedures, basic sales and marketing techniques and other topics selected by Franchisor from time to time ("Initial Training Program"). In addition, Franchisee must participate in and successfully complete Franchisor's "Four Week Pre-Training Program" and "Twelve Week Post-Training/Mentor Program" (collectively, with the Initial Training Program, "Training Programs") which reinforce and supplement the Initial Training Program.
(a) Throughout the Term of this Agreement, Franchisee will pay Franchisor the greater of one percent (1%) of Franchisee's monthly Gross Revenue for the previous month or $500. Monthly National Advertising Fund payments are paid in arrears. Franchisor may increase this amount but not above 2% of Franchisee's monthly Gross Revenue.
If the participating franchisee complies with Franchisor's guidelines on the offering terms for the leads and Franchisee declines to accept the lead on the terms offered, then the participating franchisee will not be required to turn over the lead to Franchisee and the participating franchisee may instead work the lead in the Territory without compensation to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, a new franchisee agrees to several guidelines set by the franchisor. These guidelines cover various aspects of the business, including compliance with standards, intellectual property, and operational procedures. Specifically, franchisees must adhere to the standards applicable to new Bath Tune Up franchisees before the effective date of their franchise agreement. They must also acknowledge that the franchisor may have other franchisees in the same general area and that the franchisor will consider the interests of all franchisees when deciding whether to allow additional products to be sold from the showroom. Franchisees are responsible for determining if the name "BATH TUNE-UP®" is already in use in their territory. They also waive any claims against the franchisor for damages or losses resulting from prior use of the name by others.
Bath Tune Up franchisees must successfully complete the initial training program, which includes virtual classroom and practical instruction. This training covers technical aspects, basic business operating procedures, and sales and marketing techniques. Franchisees also agree to participate in the "Four Week Pre-Training Program" and "Twelve Week Post-Training/Mentor Program." Furthermore, franchisees are required to pay a National Advertising Fee, which is the greater of 1% of their monthly Gross Revenue or $500, although the franchisor may increase this amount up to 2% of the franchisee's monthly Gross Revenue.
These guidelines ensure that Bath Tune Up franchisees operate in a manner that protects the brand's goodwill and maintains consistent standards across all locations. By agreeing to these terms, franchisees acknowledge the franchisor's rights and responsibilities in managing the franchise system. This includes the franchisor's right to direct advertising and promotional programs and to make decisions that affect all franchisees. Franchisees also agree to protect the brand by referring customers from other franchisees' territories and by complying with guidelines on offering terms for leads. These measures help to avoid misunderstandings and ensure that customers receive consistent pricing and service.