Under what condition is there no charge for the Bath Tune Up transfer fee?
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, a transfer fee is typically required when selling a franchise. However, there is an exception where no transfer fee is charged. Specifically, if a Bath Tune Up franchisee assigns their franchise to a corporation or similar entity that they control, no transfer fee will be imposed.
This provision can be beneficial for franchisees who wish to structure their business for legal or tax purposes without incurring additional costs. By assigning the franchise to a controlled entity, such as an S-corp or LLC, the franchisee can maintain ownership and control while avoiding the standard transfer fees. This provides flexibility in managing the business's legal and financial structure.
It is important for prospective Bath Tune Up franchisees to understand the conditions under which transfer fees are waived, as this can impact their long-term business planning. Franchisees should consult with legal and financial advisors to determine the most appropriate business structure and to ensure compliance with all applicable requirements for transferring the franchise to a controlled entity.