Can Bath Tune Up temporarily suspend a franchisee's access to the Extranet for non-compliance?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
in writing, and that Franchisor has the right to implement those changes in technology into the System; and (b) to abide by Franchisor's new standards (and with Franchised Business audits conducted by Franchisor or its designee to confirm Franchisee's compliance) as if this Section, and other technology provisions in this Agreement, were periodically revised for that purpose.
(e) Extranet/Electronic Portal. Franchisee must comply with Franchisor's requirements (as set forth in the Manuals or otherwise in writing) with respect to establishing and maintaining telecommunications connections between Franchisee's Computer System and Franchisor's Extranet and/or electronic portal and/or such other computer systems as Franchisor may reasonably require. The term "Extranet" means a private network based upon Internet protocols that will allow users inside and outside of Franchisor's headquarters to access certain parts of Franchisor's computer network via the Internet. Franchisor may establish an Extranet and/or electronic portal (but is not required to do so or to maintain an Extranet and/or electronic portal). Franchisee must comply with Franchisor's requirements (as set forth in the Manuals or otherwise in writing) with respect to connecting to the Extranet and/or electronic portal, and utilizing the Extranet and/or electronic portal in connection with the operation of the Franchised Business. The Extranet and/or electronic portal may include, without limitation, the Manuals, training and other assistance materials, and management reporting solutions (both upstream and downstream, as Franchisor may direct).
Franchisee must purchase and maintain such computer software and hardware (including but not limited to telecommunications capacity) as may be required to connect to and utilize the Extranet and/or electronic portal. Franchisor reserves the right to require Franchisee to contribute a reasonable amount toward the cost of the Extranet's and/or electronic portal's maintenance and further development. If Franchisee fails to comply with any policy or procedure governing the Extranet and/or electronic portal, Franchisor may temporarily suspend Franchisee's access to all or any aspect of the Extranet and/or electronic portal (such as a chat room, bulletin board, listserv or similar feature) until Franchisee fully cures the breach.
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 may temporarily suspend a franchisee's access to the Extranet if the franchisee fails to comply with policies and procedures governing its use. This includes access to all or any aspect of the Extranet, such as chat rooms or bulletin boards. The suspension will last until the franchisee fully addresses and corrects the breach of compliance.
This policy means that franchisees must adhere to all guidelines set forth by Bath Tune Up regarding the Extranet. These guidelines are typically detailed in the manuals or other written communications. The Extranet is an important tool for franchisees, providing access to manuals, training materials, and management reporting solutions. Failure to maintain compliance can disrupt a franchisee's access to these resources, potentially impacting their business operations.
The FDD states that the franchisee will not have any claim against Bath Tune Up or its affiliates due to the suspension of access to the Extranet. The franchisee also waives any such claim and releases Bath Tune Up from any liability arising from the suspension. This underscores the importance of franchisees understanding and adhering to the Extranet policies to avoid any disruption and potential legal ramifications.
This type of clause is not uncommon in franchise agreements, as franchisors need to maintain control over their systems and ensure compliance across all franchise locations. Prospective franchisees should carefully review all policies related to technology and online platforms to fully understand their obligations and the potential consequences of non-compliance.