After termination or expiration of a Bath Tune Up franchise, what are the non-competition restrictions for the franchisee?

According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees face certain non-competition restrictions after the franchise agreement is terminated or expires. Specifically, for a period of two years, franchisees are prohibited from engaging in any competing business within their former territory or within 25 miles of any other Bath Tune Up territory. This restriction is subject to state law, meaning the enforceability and specific terms may vary depending on the franchisee's location.

This non-compete clause aims to protect Bath Tune Up's market share and brand recognition by preventing former franchisees from leveraging their experience and knowledge gained during the franchise term to directly compete with the system. The clause is triggered by either the termination of the franchise agreement (whether by the franchisor or franchisee) or the natural expiration of the agreement's term.

Furthermore, upon termination or expiration, franchisees must completely de-identify their former Bath Tune Up business. This means removing all Bath Tune Up branding, signage, and other identifying marks to ensure customers do not confuse the former franchise with an active Bath Tune Up location. This de-identification requirement is crucial for maintaining the integrity of the Bath Tune Up brand and preventing any potential damage to its reputation. Prospective franchisees should carefully review Section 8.10 and 12.1 of the franchise agreement, and consult with a legal professional to understand the full scope and implications of these non-competition covenants in their specific state.