What portion of Bath Tune Up's cash was restricted as of December 31, 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
t findings, and certain internal control-related matters that we identified during the audit.
February 8, 2023
Financial Statements
Balance Sheet
| December 31, | 2022 | |------------------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, as of December 31, 2022, the company had total cash of $1,662,336, of which $395,843 was restricted. This means that approximately 23.8% of Bath Tune Up's cash was restricted.
The restricted cash consists of advertising advances and deposits from franchisees specifically designated for national and regional advertising. These funds are earmarked to cover advertising costs that benefit the franchisees and cannot be used for Bath Tune Up's own advertising expenses related to franchise sales.
For a prospective Bath Tune Up franchisee, this indicates that a portion of the fees they pay is pooled and used for advertising initiatives intended to boost brand awareness and generate leads. It also assures franchisees that these advertising funds cannot be diverted to other uses by the franchisor.