Under what circumstances can Bath Tune Up remove Equipment from its designated locations?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
3.3 Equipment Covenants
With respect to the Inventory:
- (e) Pledgor shall not remove any Equipment from the locations set forth or permitted herein, except to the extent necessary to have any Equipment repaired or maintained in the ordinary course of the business of Pledgor or to move Equipment directly from one location set forth or permitted herein to another such location and except for the movement of motor vehicles used by or for the benefit of Pledgor in the ordinary course of business,
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from removing equipment from its designated locations. However, there are a couple of exceptions to this rule.
First, equipment can be removed to be repaired or maintained in the ordinary course of the franchisee's business. This allows for routine upkeep and necessary fixes to keep the business running smoothly. Second, equipment can be moved directly from one approved location to another. This exception likely applies if a franchisee has multiple locations or needs to consolidate equipment for business reasons. Finally, the franchisee can move motor vehicles used by or for the benefit of Pledgor in the ordinary course of business.
It is important to note that these exceptions are specific and must be conducted within the normal scope of business operations. Any other removal of equipment would be a breach of the franchise agreement.