Does Bath Tune Up have a right of first refusal to acquire a franchisee's Bath Tune Up business?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| n. Franchisor’s right of | 9.3 | We can match any offer for your Franchised Business. |
| first refusal to acquire | ||
| franchisee’s business |
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 does have the right of first refusal to acquire a franchisee's business. Specifically, Bath Tune Up has the ability to match any offer a franchisee receives for their Bath Tune Up franchised business.
This right of first refusal means that if a franchisee wants to sell their business to a third party, they must first offer Bath Tune Up the opportunity to purchase the business on the same terms. This gives Bath Tune Up control over who enters the system as a new franchisee and ensures that the brand maintains consistent standards.
For a prospective franchisee, this condition could impact their exit strategy. While they are free to find a buyer for their business, Bath Tune Up can step in and purchase the business themselves, potentially altering the franchisee's plans or desired sale price. It is important to understand the implications of this right and how it might affect the franchisee's ability to sell their business in the future.