What is the 'Note' referring to in the Bath Tune Up franchise agreement?

According to the 2025 Bath Tune Up Franchise Disclosure Document, the 'Note' refers to the legal perspective on maximum price agreements in California. Specifically, the Antitrust Law Section of the Office of the California Attorney General considers maximum price agreements as automatic violations of the Cartwright Act. However, the note clarifies that these agreements are not considered automatic violations under the Sherman Act, which is a federal antitrust law.

For a Bath Tune Up franchisee in California, this distinction is crucial. It means that while setting maximum prices might be acceptable under federal law, it could lead to legal issues under California's Cartwright Act. This could impact how a franchisee structures their pricing strategy and interacts with Bath Tune Up regarding pricing guidelines.

Prospective franchisees should consult with legal counsel to fully understand the implications of this difference between state and federal antitrust laws. This will help them ensure their business practices comply with all applicable regulations and avoid potential legal challenges related to pricing agreements.