What page in the Bath Tune Up franchise agreement contains the definition of 'Company-Owned Operation'?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Page | ||
|---|---|---|
| 1. | DEFINITIONS | |
| 1.1. | Affiliate | |
| 1.2. | Approved Vendors | |
| 1.3. | Bath Improvements | 1 |
| 1.4. | Company-Owned Operation | 2 |
| 1.5. | Control | 2 |
| 1.6. | Franchised Business | 2 |
| 1.7. | Gray Area | 2 |
| 1.8. | Gross Revenue | 2 |
| 1.9. | Key Account | 2 |
| 1.10. | Manager | 3 |
| 1.11. | Manuals | 3 |
| 1.12. | Marks | 3 |
| 1.13. | Monthly Operating Report | 3 |
| 1.14. | Partnership Vendors | 3 |
| 1.15. | Products | 3 |
| 1.16. | Showroom | 3 |
| 1.17. | System | 3 |
| 1.18. | Territory | 4 |
| 1.19. | Transfer | 4 |
| 2. | THE FRANCHISED BUSINESS | 4 |
| 2.1. | Grant of Franchise | |
| 2.2. | Limited Exclusivity | 4 |
| 2.3. | Reserved Rights | 5 |
| 2.4. | Area and Scope of Operation | 6 |
| 3. | LOCATION OF BUSINESS Principal Place of Business | |
| 3.1. | ||
| 3.2. | Office/Warehouse | 6 |
| 3.3. | Showroom | 6 |
| 4. | PAYMENTS BY FRANCHISEE | 7 |
| 4 1 |
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the definition of 'Company-Owned Operation' can be found on page 2 of the franchise agreement. Specifically, section 1 within the agreement outlines various definitions, and section 1.4 is dedicated to defining 'Company-Owned Operation'.
The document defines a 'Company-Owned Operation' or 'COO' as a business that is similar to the franchised Bath Tune Up business. These operations are owned and run by Bath Tune Up itself or one of its affiliates for their own financial benefit.
This is important for a potential franchisee to understand because it clarifies that Bath Tune Up can operate its own competing businesses. It also helps define the scope and limitations of the franchisee's exclusive territory, as the franchisor may operate its own units or grant franchises to others outside the franchisee's territory.