Does Bath Tune Up have the right of first refusal to acquire a Bath Tune Up franchisee's business?

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. This means that if a franchisee receives an offer to purchase their Bath Tune Up franchise, they must first offer Bath Tune Up the opportunity to buy the business on the same terms.

This right is detailed in Item 17 of the FDD, which summarizes key provisions of the franchise agreement related to renewal, termination, transfer, and dispute resolution. Specifically, section 9.3 of the franchise agreement grants Bath Tune Up the ability to match any offer made for a franchisee's business.

For a prospective franchisee, this means that selling their Bath Tune Up franchise may require an extra step. Before finalizing a sale to a third party, the franchisee must present the offer to Bath Tune Up, giving them the option to purchase the franchise themselves. This could potentially delay a sale or influence the final sale price, depending on Bath Tune Up's decision. It is important for franchisees to understand this right and its implications when considering selling their business.

This type of clause is relatively common in franchising, as it allows the franchisor to maintain control over the brand and ensure that new franchisees meet their standards. However, it's crucial for potential franchisees to carefully review the specific terms and conditions outlined in the franchise agreement to fully understand their rights and obligations regarding the transfer of their Bath Tune Up franchise.