Is the Bath Tune Up transfer fee refundable?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Concurrently with Franchisee's signing of this Agreement, Franchisee will pay to Franchisor an "Initial Franchise Fee" of $16,958. Franchisee will receive the BATH TUNE-UP® Start-Up Package (listed in Schedule 3 to this Agreement) when the Initial Franchise Fee is paid in full. The Initial Franchise Fee is payable in a lump sum in lawful money of the United States of America upon signing of this Agreement by Franchisee. The Initial Franchise Fee is not refundable.
2. Territory Fee. Section 4.2 of the Franchise Agreement is amended as follows:
"Concurrently with Franchisee's signing of this Agreement, Franchisee also will pay Franchisor a Territory Fee of $38,250. The Territory Fee is payable in a lump sum, all in lawful money of the United States of America, upon signing of this Agreement by Franchisee. The Territory Fee is not refundable."
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
Based on the 2025 Bath Tune Up Franchise Disclosure Document, the document does not specify whether the transfer fee is refundable. However, it does state that the initial franchise fee of $16,958 or $19,950 and the territory fee of $38,250 or $45,000 are not refundable.
As the FDD does not explicitly address the refundability of the transfer fee, prospective franchisees should seek clarification from the franchisor regarding the conditions under which a transfer fee might be refunded. This is crucial for understanding the financial implications of transferring ownership and the potential risks involved.
Understanding the transfer fee policy is essential for any potential Bath Tune Up franchisee. It is recommended that prospective franchisees consult with a franchise attorney to fully understand the terms and conditions of the franchise agreement, including any clauses related to transfer fees and their refundability.