What is the purpose of the Consent to Transfer and Assumption of Franchise Agreement for Bath Tune Up?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
ospective franchisee is not an individual, list the names, residence addresses, and respective | | | titles of each individual who has or will have management authority with respect to Franchisee, | | | including officers, directors, managers, and partners (if necessary, list other individuals on | | | additional sheets attached): | | | Title: | | | a. | | | Title: | | | b. | | | Title: | | | c. |
EXHIBIT H
CONSENT TO TRANSFER AND ASSUMPTION OF FRANCHISE AGREEMENT
CONSENT TO TRANSFER AND ASSUMPTION OF FRANCHISE AGREEMENT
| This Consent to Transfer and Assumption of Franchise Agreement (Consent and Assumption) is | |||
|---|---|---|---|
| entered into by and among HFC KTU LLC, a Delaware limited liability company ("Franchisor"), | |||
| ("Existing | Franchisee"), | and | ("New |
| Franchisee"). | |||
| WHEREAS, Franchisor and Existing Franchisee presently are parties to that certain Franchise | |||
| Agreement, dated | (Franchise Agreement), pursuant to which Franchisor franchised | ||
| Existing Franchisee the right to operate a business (Franchised Business) including the Marks of Franchisor | |||
| (Franchise) in the territory known as | (Territory). | ||
| WHEREAS, with Franchisor's consent, Existing Franchisee is transferring the Franchise to New |
Franchisee and New Franchisee is accepting the Franchise in accordance with the obligations set forth in the Franchise Agreement, including, but not limited to, the obligations regarding assignment set forth in paragraph 9.2 of the Franchise Agreement, which are hereby expressly incorporated and made a part of this Consent and Assumption.
NOW, THEREFORE, in consideration of the foregoing and of the covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
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- Existing Franchisee shall transfer the Franchise to New Franchisee on or about (Transfer Date) subject to the provisions of paragraph 3, below, and paragraph 9.2 of the Franchise Agreement.
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Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the Consent to Transfer and Assumption of Franchise Agreement is used when an existing franchisee wants to transfer their franchise to a new franchisee. The agreement involves three parties: HFC KTU LLC (the Franchisor), the existing franchisee, and the new franchisee. This legal document formalizes the transfer of rights and obligations under the original Franchise Agreement.
The agreement acknowledges that the franchisor and the existing franchisee are parties to a Franchise Agreement, which grants the existing franchisee the right to operate a Bath Tune Up business, including the use of the franchisor's marks, within a specific territory. With the franchisor's consent, the existing franchisee is transferring this franchise to a new franchisee.
Several clauses within the Consent to Transfer and Assumption of Franchise Agreement outline important considerations. The existing franchisee releases and indemnifies the franchisor from any liabilities arising from the transfer. Failure to comply with the agreement constitutes a material breach, entitling the franchisor to remedies under the agreement or at law. The franchisor, by granting consent, has elected not to exercise its right of first refusal. The existing franchisee has 90 days to complete the transfer after signing the agreement, and must comply with Article 9 of the Franchise Agreement before the transfer is finalized. The existing franchisee also releases the franchisor from any claims, except as expressly stated in the agreement, in exchange for the consent and assumption.