Who are the parties to the General Security Agreement for a Bath Tune Up franchise?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TITLE OF AGREEMENT | EXHIBIT/ SCHEDULE # | SIGNED BY |
|---|---|---|
| Franchise Agreement, State Addendum and Schedules | Exhibit A | You and us |
| Personal Covenant and Guarantee | Schedule 1 | All people having direct or indirect “Control”* over Franchisee or a direct or indirect beneficial ownership interest in Franchisee, including the spouse of Franchisee. |
| Consent to Transfer and Assumption of Franchise | Exhibit H | You, new franchisee and us |
| (includes Release of Claims) | ||
| Veteran’s Addendum to Franchise Agreement | Exhibit I | You (only if you are a veteran) and us |
| Secured Promissory Note | Exhibit J | You (Obligor) |
| General Security Agreement | Exhibit K | You (Pledgor) and us |
| Addendum to Franchise Agreement – Two Territories | Exhibit L | You (only if you purchase two territories) and us |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the parties to the General Security Agreement are the franchisee (identified as the Pledgor) and the franchisor. This agreement is documented as Exhibit K within the FDD.
In practical terms, this means that as a Bath Tune Up franchisee, you will be required to sign a General Security Agreement with the franchisor. This agreement likely grants the franchisor a security interest in some or all of your business assets. This gives Bath Tune Up a legal claim against those assets if you fail to meet your financial obligations under the Franchise Agreement.
Prospective franchisees should carefully review Exhibit K and seek legal counsel to fully understand the implications of the General Security Agreement. Understanding which assets are subject to the security interest, and the conditions under which Bath Tune Up can exercise its rights, is crucial for assessing the financial risks associated with the franchise.