Are there any exceptions to the Bath Tune Up transfer fee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Fees on Transfer3 | If selling to a new franchisee, greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory. | Before transfer | Payable when you sell your franchise. No charge if your franchise is assigned to a corporation or similar entity that you control. |
Source: Item 6 — OTHER FEES (FDD pages 15–19)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, there is an exception to the transfer fee. Typically, when selling a Bath Tune Up franchise, a transfer fee is required. If selling to a new franchisee, the fee is the greater of $24,950 or 6% of the sale price, up to a maximum of $50,000. If selling to an existing franchisee, the transfer fee is $5,000 per territory.
However, the document states that there will be no transfer fee if the Bath Tune Up franchise is assigned to a corporation or similar entity that the franchisee controls. This provides an opportunity for franchisees to restructure their business for legal or tax purposes without incurring additional fees.
This exception is a benefit to prospective Bath Tune Up franchisees, as it allows for flexibility in how they structure their business and manage ownership without incurring a transfer fee. It is important for franchisees to understand the conditions under which this exception applies to ensure they can take advantage of it if needed.