What skills and qualifications might Bath Tune Up require of a prospective transferee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, it will not be unreasonable for Franchisor to impose, among other things, the following conditions precedent to its consent to any Transfer:
(i) The proposed assignee of the interest to be subjected to the Transfer will complete Franchisor's application for a franchise agreement, and Franchisee and the proposed assignee will fully disclose in writing all of the terms and conditions of the proposed Transfer.
(ii) The proposed assignee(s) of the interest to be subjected to the Transfer demonstrate(s) that it has or they have the skills, qualifications, and economic resources necessary, in Franchisor's reasonable judgment, to conduct the business contemplated by this Agreement.
Among other things, this may require the possession of certain skills and qualifications of the prospective transferee, including experience in or ability to learn the bathroom improvement business, financial and operational skills and qualifications, economic resources, reputation and character of the prospective transferees, and the ability of the prospective transferee(s) to fully and faithfully conduct the Franchised Business as contemplated by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their interest in the franchise agreement, Bath Tune Up may assess the prospective transferee's skills and qualifications. The franchisor requires the proposed assignee to complete a franchise application and fully disclose the terms of the proposed transfer in writing.
Bath Tune Up will evaluate whether the proposed assignee has the skills, qualifications, and economic resources necessary to operate the business. This assessment is based on Bath Tune Up's reasonable judgment.
The skills and qualifications that Bath Tune Up may consider include experience in or the ability to learn the bathroom improvement business, financial and operational skills, economic resources, and the prospective transferee's reputation and character. Ultimately, Bath Tune Up seeks to ensure that the transferee can fully and faithfully conduct the franchised business as outlined in the agreement.