Under what condition is the Bath Tune Up transfer lead referral fee charged?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Transfer Lead Referral Fee | Our then-applicable lead referral fee, currently $15,000 or the amount of any broker fees that we must pay a third party (not an employee of ours) | On a transfer of your franchise agreement to a buyer who was already listed in our sale database at the time you and the buyer began discussing a sale. | Intended to partially reimburse us for our costs in developing leads who then purchase from existing franchisees. |
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 lead referral fee is charged when a franchisee transfers their franchise agreement to a buyer already listed in Bath Tune Up's sales database at the time the franchisee and buyer began discussing the sale.
The purpose of this fee is to partially reimburse Bath Tune Up for the costs incurred in developing leads who ultimately purchase from existing franchisees. The fee is either $15,000 or the amount of any broker fees that Bath Tune Up must pay to a third party (not an employee of theirs), whichever is greater.
This policy means that if a franchisee independently finds a buyer who is not in Bath Tune Up's database, no referral fee applies. However, if the buyer is a lead generated by Bath Tune Up, the franchisee will be responsible for this fee upon the transfer of the franchise. It is important for prospective franchisees to understand this fee structure, as it can impact the financial aspects of selling their franchise in the future.