For Bath Tune Up, what is the purpose of the Addendum to the Franchise Agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
This Addendum amends some of the provisions of the Franchise Agreement to reflect the agreement between the parties as to fees payable under the Franchise Agreement. Any capitalized terms that are defined in the Franchise Agreement are used in this Addendum as defined in the Franchise Agreements.
NOW, THEREFORE, the parties agree to amend the Franchise Agreement as follows:
- Initial Franchise Fee. Section 4.1 of the Franchise Agreement is amended as follows:
"Concurrently with Franchisee's signing of this Agreement, Franchisee will pay to Franchisor an "Initial Franchise Fee" of $16,958. Franchisee will receive the BATH TUNE-UP® Start-Up Package (listed in Schedule 3 to this Agreement) when the Initial Franchise Fee is paid in full. The Initial Franchise Fee is payable in a lump sum in lawful money of the United States of America upon signing of this Agreement by Franchisee. The Initial Franchise Fee is not refundable."
2. Territory Fee. Section 4.2 of the Franchise Agreement is amended as follows:
"Concurrently with Franchisee's signing of this Agreement, Franchisee also will pay Franchisor a Territory Fee of $38,250. The Territory Fee is payable in a lump sum, all in lawful money of the United States of America, upon signing of this Agreement by Franchisee. The Territory Fee is not refundable."
3. Reaffirmation. Except as specifically modified by this Addendum, all terms and provisions of the Franchise Agreements are reaffirmed in their entirety.
IN WITNESS WHEREOF, the parties have caused this Addendum to be executed on or as of the dates indicated below:
[REMAINDER OF PAGE INTENTIONALLY BLANK]
[Item 22: CONTRACTS]
| Dakota 57401 ("Franchisor") and | , a | ("Franchisee"). | |
|---|---|---|---|
| WHEREAS, Franchisor and Franchisee are parties to two franchise agreements intended to bear the same date | and | (the "Franchise | |
| as this Addendum for the Bath Tune-Up® territories known as | |||
| Agreements"). | |||
| WHEREAS, in consideration for Franchisee purchasing two territories, the Royalty Fees set forth in the | |||
| Franchise Agreements are modified as more particularly set forth herein. |
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the Addendum to the Franchise Agreement serves to modify specific provisions of the standard agreement. Specifically, the Addendum adjusts the fees payable under the Franchise Agreement to reflect the agreement between Bath Tune Up and the franchisee.
The Addendum modifies Section 4.1 of the Franchise Agreement, which concerns the Initial Franchise Fee. It states that the franchisee will pay Bath Tune Up an Initial Franchise Fee of $16,958 upon signing the agreement. In return, the franchisee will receive the Bath Tune Up Start-Up Package, which is listed in Schedule 3 of the agreement, once the Initial Franchise Fee is paid in full. The Addendum clarifies that the Initial Franchise Fee is payable in a single lump sum in U.S. currency and is non-refundable.
Furthermore, the Addendum modifies Section 4.2 of the Franchise Agreement, addressing the Territory Fee. It specifies that the franchisee will also pay Bath Tune Up a Territory Fee of $38,250 upon signing the agreement. Similar to the Initial Franchise Fee, the Territory Fee is payable in a lump sum in U.S. currency and is non-refundable. The Addendum explicitly reaffirms that all other terms and provisions of the Franchise Agreement remain in full effect, except for the specific modifications outlined within the Addendum itself.
In another instance, the Addendum states that in consideration for the Franchisee purchasing two territories, the Royalty Fees set forth in the Franchise Agreements are modified as more particularly set forth in the addendum.