When is the transfer fee due to Bath Tune Up?
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, the transfer fee is due before the transfer of the franchise. This means that if a franchisee decides to sell their Bath Tune Up franchise, they must pay the transfer fee before the sale is finalized.
The amount of the transfer fee varies depending on who the franchise is being sold to. If the sale is to a new franchisee, the transfer fee is the greater of $24,950 or 6% of the sale price, with a maximum fee of $50,000. However, if the sale is to an existing Bath Tune Up franchisee, the transfer fee is a flat $5,000 per territory.
It is important to note that there is no transfer fee if the franchise is assigned to a corporation or similar entity that the franchisee controls. This provides some flexibility for franchisees who may want to restructure their business without incurring additional fees. The 'before transfer' due date is fairly standard in franchising, as it allows the franchisor to collect the fee and process the transfer smoothly.