What policies must a Bath Tune Up franchisee comply with regarding Key Accounts?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
or will only be required to provide Franchisee a paper copy of the Manuals and any updates to it, unless Franchisee is not otherwise entitled to the Manuals.
8.15. Change in Status Processing
Requests for (i) change of fictitious business name, (ii) changes in designated Manager or (iii) other changes in status as may be specified from time to time by Franchisor, will be made on the form as designated by Franchisor in the Manuals.
8.16. Key Accounts
Franchisee acknowledges that to competitively attract and effectively service Key Accounts, Franchisor may need to establish policies governing the manner in which Key Accounts will be serviced. Franchisee will comply with all Key Account policies.
Franchisee further acknowledges that Key Account policies to be established by Franchisor may obligate Franchisee to pay to Franchisor a lead referral fee or a percentage of the job in exchange for referral of leads from the Key Account. Franchisee acknowledges that Franchisor makes no representation or warranty that any specified amount of Key Account business will be provided within the Territory.
8.17. Vendor Allowances
Franchisee acknowledges and agrees that Franchisor shall have the right to collect and retain all manufacturing allowances, marketing allowances, rebates, discounts, commissions, credits, monies, payments or benefits (collectively, "Allowances") offered by vendors to Franchisor or its affiliates based upon Franchisee's (and other franchisees') purchases of Products and other goods and services. Franchisee acknowledges that such Allowances are additional consideration for the rights granted by Franchisor to Franchisee under this Agreement and that Franchisor has exclusive right, title and interest in and to any and
all such Allowances. Franchisee further acknowledges that Franchisor is entitled to collect, retain and utilize any or all such Allowances without restriction (unless otherwise instructed by the vendor).
8.18. Privacy
- (a) With regards to Privacy Information (defined below) Franchisee and Franchisor must comply with their obligations under applicable Privacy Law.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees must comply with all Key Account policies established by the franchisor. These policies are designed to competitively attract and effectively service Key Accounts.
These Key Account policies may require a Bath Tune Up franchisee to pay the franchisor a lead referral fee or a percentage of the job in exchange for leads from the Key Account. However, the FDD specifies that Bath Tune Up does not guarantee any specific amount of Key Account business within the franchisee's territory.
Additionally, franchisees are generally prohibited from contracting directly with Key Accounts. Bath Tune Up may enter into agreements with Key Accounts for sales or installations across multiple territories, including the franchisee's. If a franchisee wishes to service Key Accounts as a subcontractor, they must sign Bath Tune Up's Master Services Agreement, which governs all work performed for Key Accounts. The franchisee can choose whether to service a Key Account on a case-by-case basis. If a franchisee opts out of servicing a Key Account or fails to provide services to a Key Account on two occasions within a 12-month period, Bath Tune Up may grant others the right to service that Key Account in the territory for the remainder of the term.
A customer in the territory with a job too large for the franchisee or that the franchisee chooses not to service is considered a Key Account. This designation applies even if the Key Account's operations are limited to the franchisee's territory. These policies ensure that larger clients are adequately served, even if it means the franchisee must pass on the opportunity or work under the franchisor's terms.