Does Bath Tune Up have the right to approve all transfers of the franchise?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| l. Franchisor approval of | 9.2(b) | We have the right to approve all transfers. |
| transfer | ||
| m. Conditions for franchisor approval of transfer | 9.2(b)(i)-(vii) | New franchisee qualifies, initial franchise fee paid, transfer fee paid, purchase agreement approved, training arranged, release signed by you, all money due and owing to us paid by you, and current agreement signed by new franchisee. (Also see r. below.) |
| n. Franchisor’s right of | 9.3 | We can match any offer for your Franchised Business. |
| first refusal to acquire | ||
| franchisee’s business | ||
| p. Death or disability of | 9.6 | Heir or successor must complete initial training within |
| franchisee | 30 days after the date of transfer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, Bath Tune Up retains the right to approve all franchise transfers. This means that if a franchisee wishes to sell their franchise to a new owner, Bath Tune Up must give its consent. This provision is typical in franchising, as it allows the franchisor to maintain control over who operates under their brand name.
To gain approval for a transfer, the prospective new franchisee must meet certain conditions. These include meeting Bath Tune Up's qualifications for new franchisees, paying the initial franchise fee, paying a transfer fee, securing approval of the purchase agreement, arranging for training, signing a release, paying all outstanding debts to Bath Tune Up, and ensuring the new franchisee signs the current franchise agreement. These conditions ensure that any new franchisee is properly vetted and financially sound, protecting the Bath Tune Up brand and the interests of other franchisees.
Bath Tune Up also has the right of first refusal, meaning they can match any offer made for a franchisee's business. This allows Bath Tune Up to purchase the franchise themselves if they choose, rather than allowing it to be sold to an outside party. Additionally, in the event of the death or disability of a franchisee, their heir or successor must complete the initial training program within 30 days of the transfer date to maintain the franchise agreement.