Under what circumstances might Bath Tune Up require a franchisee to sign a release of claims?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) The name "BATH TUNE-UP®" may be in use by other businesses in the United States who are not Franchisor's franchisees or in any way affiliated with Franchisor. Franchisee acknowledges that Franchisee is responsible for finding out whether the name "BATH TUNE-UP®" is already being used in the Territory. As a material part of the consideration for Franchisor's grant of a franchise to Franchisee, Franchisee waives any claim that Franchisor is liable to Franchisee for damages or losses resulting from any prior use of the name "BATH TUNE-UP®" by anyone else. Nothing in the preceding sentence, however, will be considered to limit a party's respective obligations under Section 6.6 below.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, a franchisee may be required to sign a release of claims regarding the use of the "BATH TUNE-UP®" name by other businesses. Specifically, as a condition of receiving the franchise, the franchisee must waive any claims against Bath Tune Up for damages or losses resulting from prior use of the name by others. This acknowledgement is a material part of the agreement.
This requirement stems from the possibility that other businesses may have used the name "BATH TUNE-UP®" before its registration as a trademark. Bath Tune Up advises franchisees that it cannot guarantee the name is not currently in use within their territory. It is the franchisee's responsibility to conduct a thorough search to determine if any prior users of the name exist in their territory before signing the franchise agreement.
This clause protects Bath Tune Up from potential legal claims by franchisees who later discover another business using a similar name in their area. However, the FDD specifies that this waiver does not limit either party's obligations under Section 6.6 of the agreement, which may cover other aspects of intellectual property rights and responsibilities.