What is the role of KTU LLC in the Bath Tune Up Secured Promissory Note?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TITLE OF AGREEMENT | EXHIBIT/ SCHEDULE # | SIGNED BY |
|---|---|---|
| Franchise Agreement, State Addendum and Schedules | Exhibit A | You and us |
| Personal Covenant and Guarantee | Schedule 1 | All people having direct or indirect “Control”* over Franchisee or a direct or indirect beneficial ownership interest in Franchisee, including the spouse of Franchisee. |
| Consent to Transfer and Assumption of Franchise | Exhibit H | You, new franchisee and us |
| (includes Release of Claims) | ||
| Veteran’s Addendum to Franchise Agreement | Exhibit I | You (only if you are a veteran) and us |
| Secured Promissory Note | Exhibit J | You (Obligor) |
| General Security Agreement | Exhibit K | You (Pledgor) and us |
| Addendum to Franchise Agreement – Two Territories | Exhibit L | You (only if you purchase two territories) and us |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, HFC KTU LLC is involved in the Secured Promissory Note. Specifically, the table in Exhibit J indicates that HFC KTU LLC is 'us' in the context of the Secured Promissory Note. The franchisee, identified as 'You (Obligor),' is the other party involved in the note.
This means that HFC KTU LLC is the lender or the party to whom the promissory note is owed by the franchisee. The franchisee, as the Obligor, is the one promising to pay back a certain sum of money to HFC KTU LLC under the terms outlined in the Secured Promissory Note. This arrangement is typical in franchising, where the franchisor may provide financing to help franchisees get started.
Prospective Bath Tune Up franchisees should carefully review the terms of the Secured Promissory Note, including the interest rate, repayment schedule, and any collateral required to secure the note. Understanding these details is crucial for managing their financial obligations to HFC KTU LLC.