What is the permitted content of advertising by a Bath Tune Up franchisee in a Gray Area?

According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee must obtain prior written approval before selling Bath Improvements for installation in an unassigned Gray Area outside their assigned territory. Generally, Bath Tune Up will grant permission for a franchisee to operate in a Gray Area. The Bath Improvements that are sold must be installed in buildings located in the franchisee's territory or, with Bath Tune Up's consent, in a Gray Area.

This means that while franchisees are generally allowed to operate in Gray Areas with permission, they need to be cautious about directing advertising or marketing specifically at customers in other franchisees' territories. It is important to get written approval before selling Bath Improvements for installation in these unassigned areas. This policy ensures that franchisees do not encroach on each other's territories and that Bath Tune Up maintains control over market development.

Bath Tune Up retains the right to sell any Gray Area territory at any time, without advance notice to the franchisee. Upon notice from Bath Tune Up, the franchisee must immediately cease all marketing activities in any Gray Area. However, after receiving a notice to cease marketing, a franchisee has a maximum of 30 days to complete installations for orders completed before the notice was given. This policy protects Bath Tune Up's ability to expand its franchise network and prevents franchisees from establishing long-term claims on Gray Areas.