factual

Under what circumstances can the Bath Tune Up franchisor intervene in customer complaints?

Bath_Tune_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

(c) Franchisor may in the future establish the BATH TUNE-UP® National Support Services Network, through which qualified representatives will be able to respond to inquiries from customers of BATH TUNE-UP® franchisees.

The costs for these services may be reimbursed partially or wholly from the National Advertising Fund ("Fund").

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, Bath Tune Up may establish a National Support Services Network. If established, this network would allow qualified representatives to respond to inquiries from customers of Bath Tune Up franchisees. The costs for these services may be reimbursed partially or wholly from the National Advertising Fund.

This means that Bath Tune Up franchisees could potentially have a support system in place to handle customer inquiries and complaints. The funding for this support would come from the National Advertising Fund, which franchisees contribute to through a monthly fee. This fee is the greater of 1% of the franchisee's monthly Gross Revenue for the previous month or $500, but Franchisor may increase this amount but not above 2% of Franchisee's monthly Gross Revenue.

However, the FDD indicates that the establishment of this network is not guaranteed, as Bath Tune Up "may in the future establish" it. Additionally, the extent to which the National Advertising Fund will cover the costs is also uncertain, as the costs "may be reimbursed partially or wholly" from the fund. This implies that franchisees may still bear some responsibility for addressing customer issues, even with the network in place.

It's important to note that the National Advertising Fund is not a trust or escrow account, and Bath Tune Up has no fiduciary obligation to franchisees with respect to the Fund. Bath Tune Up has the absolute right to direct the creative concepts, materials, endorsements and media used in the advertising and public relations programs, as well as the placement and allocation of the programs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.