When do payments begin for Bath Tune Up financing?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If you meet our credit standards, we will, at your request, provide financing as shown below.
To obtain financing, you must sign a Secured Promissory Note and General Security Agreement substantially in the form of Exhibits J and K to this disclosure document. No separate personal guaranty is required to obtain financing. Payments begin with the first royalty due date. The note can be prepaid without penalty at any time during its term. The General Security Agreement grants us a security interest in substantially all of your assets to secure your payments under the Secured Promissory Note. You waive your right to notice of a collection action and to assert any defenses to collection against us.
Source: Item 10 — FINANCING (FDD pages 26–27)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, if a franchisee meets the credit standards, Bath Tune Up will provide financing at the franchisee's request. To obtain this financing, the franchisee must sign a Secured Promissory Note and General Security Agreement. A separate personal guaranty is not required. Payments on this financing begin with the first royalty due date. The franchisee can prepay the note without penalty at any time during its term.
The General Security Agreement grants Bath Tune Up a security interest in substantially all of the franchisee's assets to secure payments under the Secured Promissory Note. The franchisee also waives their right to notice of a collection action and to assert any defenses to collection against Bath Tune Up.
This means that a new Bath Tune Up franchisee who receives financing from the company will not have to make their first payment until the first royalty payment is due. This could provide some initial financial relief as the franchisee starts their business. However, the franchisee should be aware that Bath Tune Up has a security interest in their assets and that they have waived certain legal rights.