Are payments of the National Advertising Fee refundable for Bath Tune Up franchisees?

According to Bath Tune Up's 2025 Franchise Disclosure Document, payments made towards the National Advertising Fee are not refundable. This means that once a franchisee pays this fee, they cannot get it back under any circumstances, even if they leave the franchise system or if the advertising campaigns are not successful in their specific territory.

The National Advertising Fee is the greater of one percent of the franchisee's monthly Gross Revenue for the previous month or $500. Bath Tune Up franchisees must pay this fee throughout the term of their agreement. The franchisor has the right to increase this amount, but it cannot exceed 2% of the franchisee's monthly Gross Revenue.

This non-refundable policy is a standard practice in franchising, as these fees are pooled to fund collective advertising and marketing efforts. While the FDD states that the fund is not a trust or escrow account and Bath Tune Up has no fiduciary obligation to the franchisee regarding the fund, the franchisee does have the right to request a summary statement of receipts and expenditures of the fund relating to the preceding calendar year, certified to be correct by an officer of Bath Tune Up, on or before March 31 of each year.