Does Bath Tune Up have rules and regulations regarding operations in a Gray Area?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we approve otherwise in writing, you may only provide sales and services with respect to bathrooms located within your Territory. Unless we instruct otherwise, you may operate in unassigned territories known as Gray Area adjoining your territory. Any operations in Gray Area are subject to sale of a territory that includes it or part of it to another franchisee, to initiation of "company-owned" operations in the Gray Area, and to our rules and regulations. Any advertising in Gray Area may include only our tollfree telephone number, and not your local telephone number.
Source: Item 16 — RESTRICTION ON WHAT FRANCHISEE MAY SELL (FDD pages 37–38)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees may operate in unassigned territories, referred to as "Gray Areas," that adjoin their assigned territory, unless Bath Tune Up instructs otherwise. However, operations in these Gray Areas are subject to specific rules and regulations. These regulations include the possibility of the Gray Area being sold to another franchisee or Bath Tune Up initiating company-owned operations in that area. Additionally, any advertising in a Gray Area may only include Bath Tune Up's toll-free number and not the franchisee's local telephone number.
Bath Tune Up maintains the right to sell or assign a Gray Area, or any part of it, at any time without providing notice to the franchisee. Franchisees do not have a right of first refusal or an option to purchase a territory that was previously designated as a Gray Area. Upon receiving notice from Bath Tune Up, a franchisee must immediately cease all marketing activities in the Gray Area. However, the franchisee is allowed a maximum of 30 days to complete installations of Bath Improvements for which orders were finalized before the notice to cease marketing was given.
These stipulations mean that while Bath Tune Up franchisees have the potential to expand their service area into Gray Areas, this privilege is not guaranteed and is subject to change at any time at Bath Tune Up's discretion. The franchisee must be prepared to relinquish operations in a Gray Area with limited notice, which could impact their business strategy and revenue projections. The inability to use local contact information in Gray Area advertising may also limit a franchisee's ability to effectively market in these areas.