Must the proposed assignee of a Bath Tune Up franchise complete an application for a franchise agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, it will not be unreasonable for Franchisor to impose, among other things, the following conditions precedent to its consent to any Transfer:
(i) The proposed assignee of the interest to be subjected to the Transfer will complete Franchisor's application for a franchise agreement, and Franchisee and the proposed assignee will fully disclose in writing all of the terms and conditions of the proposed Transfer.
(ii) The proposed assignee(s) of the interest to be subjected to the Transfer demonstrate(s) that it has or they have the skills, qualifications, and economic resources necessary, in Franchisor's reasonable judgment, to conduct the business contemplated by this Agreement.
Among other things, this may require the possession of certain skills and qualifications of the prospective transferee, including experience in or ability to learn the bathroom improvement business, financial and operational skills and qualifications, economic resources, reputation and character of the prospective transferees, and the ability of the prospective transferee(s) to fully and faithfully conduct the Franchised Business as contemplated by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their interest in the franchise agreement to another party, the proposed assignee must complete Bath Tune Up's application for a franchise agreement. This is one of the conditions precedent that Bath Tune Up may impose before consenting to the transfer.
Bath Tune Up also requires that both the franchisee and the proposed assignee fully disclose all terms and conditions of the proposed transfer in writing. This ensures transparency and allows Bath Tune Up to assess the transfer's impact on the franchise system.
Additionally, the proposed assignee must demonstrate that they possess the necessary skills, qualifications, and economic resources to successfully operate the Bath Tune Up franchise. This includes experience or the ability to learn the bathroom improvement business, financial and operational skills, sufficient economic resources, and a good reputation and character. Bath Tune Up evaluates these factors to ensure the assignee can fully and faithfully conduct the franchised business as outlined in the agreement. These stipulations are in place to protect the Bath Tune Up brand and the interests of other franchisees within the system.