What is the Bath Tune Up transfer fee if selling to a new franchisee?
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 when selling to a new franchisee is the greater of $24,950 or 6% of the sale price, up to a maximum of $50,000. This fee is payable before the transfer occurs.
This means that if a franchisee decides to sell their Bath Tune Up franchise to someone who is not already a franchisee within the system, they will need to pay this transfer fee to Bath Tune Up. The exact amount will depend on the sale price of the franchise. For example, if the franchise is sold for $300,000, the transfer fee would be $18,000 (6% of $300,000), but since the minimum is $24,950, the franchisee would pay $24,950. If the franchise is sold for $1,000,000, 6% would be $60,000, but the fee is capped at $50,000, so the franchisee would pay $50,000.
It's important to note that this fee is in place to compensate Bath Tune Up for the work involved in approving the transfer and bringing in a new franchisee. This fee covers Bath Tune Up's administrative costs and ensures that the new franchisee meets the brand's standards. The FDD also specifies that there is no charge if the franchise is assigned to a corporation or similar entity that the franchisee controls, which provides an exception for certain internal restructuring scenarios.
Prospective franchisees should consider this transfer fee as a potential cost when evaluating the overall investment and potential return on investment for a Bath Tune Up franchise. Understanding the conditions and amounts associated with the transfer fee is crucial for financial planning and decision-making.