Does Bath Tune Up have sole discretion in withholding consent for sub-licensing?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisor may withhold its consent to a sub-licensing of all or part of Franchisee's interest in the Agreement for any reason whatsoever in Franchisor's sole discretion.
If Franchisee or any of its owners proposes to make any other form of Transfer, and if Franchisor elects not to exercise its right of first refusal (or if the right of first refusal is not applicable to the proposed Transfer, as provided in this Agreement), Franchisor may withhold or condition Franchisor's consent to any Transfer, as Franchisor deems appropriate, based on the circumstances of the Transfer or otherwise.
If Franchisor believes that the terms and conditions of any Transfer would not be in the best interests of the Franchisor, the proposed transferee or the BATH TUNE-UP® System, Franchisor may refuse to consent to such Transfer.
Without limitation, Franchisor may consider the effect that the Transfer and the prospective transferees will have or may reasonably be expected to have on the reputation or business operations of the Franchised Business, the Marks, or Franchisor, or any of Franchisor's Affiliates.
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, Bath Tune Up has sole discretion in withholding consent for sub-licensing a franchise. Bath Tune Up may withhold consent for any reason it deems appropriate.
If a franchisee proposes any other form of transfer, and Bath Tune Up chooses not to exercise its right of first refusal, Bath Tune Up can still withhold or condition its consent to the transfer based on the circumstances. Bath Tune Up may refuse consent if it believes the transfer's terms and conditions aren't in the best interest of the franchisor, the potential transferee, or the Bath Tune Up system.
Bath Tune Up will consider the effect of the transfer and the prospective transferees on the reputation or business operations of the franchised business, the marks, or Bath Tune Up itself. Bath Tune Up may require the proposed assignee to complete a franchise application and fully disclose the terms of the proposed transfer. The assignee must also demonstrate the necessary skills, qualifications, and economic resources to conduct the business.