Bath Tune Up
Bath Tune Up offers bathroom remodeling services including tub/shower conversions, lighting fixtures, and plumbing repairs. Known for full bath remodels and home improvement products, it operates in the bathroom renovation and home improvement franchise sector.
Bath Tune Up franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a BATH TUNE-UP ® franchise ranges from $106,930 to $183,850. This includes $64,950 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $19,950 [p.81, p.13]. This fee is nonrefundable and must be paid in full upon signing of the franchise agreement [p.81, p.13]. Veterans, active service members, or their spouses receive a 15% discount on this fee [p.19].
What are the ongoing royalty and advertising fees?
Ongoing royalties include both variable royalties based on a percentage of sales generated by the franchisee, and fixed rate royalties which are flat fees due monthly as determined based on the franchise agreement. These fixed fees may escalate during a new franchisee ramp-up period or periodically for inflation. Advertising fees are also included in the franchise agreements and are part of the ongoing fees imposed and collected by the company. [p.17, p.171]
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the length of the initial franchise agreement or the renewal process beyond stating that if a new franchise agreement is signed after the expiration of the initial term without prior written notice to terminate, the Franchisee may operate on a month-to-month basis under the terms and conditions of the expired agreement. [p.86]
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but the franchisor has the right to refuse such transfers except for good cause [p.5]. Good cause includes factors like the franchisor's right of first refusal to purchase the franchise [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law [p.59]. This includes failing to comply with lawful provisions of the franchise agreement and not curing such failures after receiving written notice and a reasonable opportunity, which cannot exceed 30 days [p.5].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention working capital recommendations but not specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
Yes, you are provided with a protected territory where you will not face competition from other franchised businesses selling and installing Bath Improvements using the company's System and Marks. However, there is no guarantee that another franchisee will not breach their agreement and operate in your territory [p.32].
What training and ongoing support does the franchisor provide?
The franchisor provides initial classroom and practical training programs conducted up to four times a year, depending on demand [p.31]. Additionally, they offer a 12-week post-training program and launch team to assist with opening activities [p.26]. This support is designed to help new franchisees successfully start their business operations [p.26].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it [p.39]. However, they do not make any financial performance representations other than providing actual records of an existing outlet being considered for purchase [p.42]. Written substantiation can be provided upon request [p.42].
What am I restricted to selling, and where must I buy supplies?
You are required to sell Bath Improvements in accordance with the System and using the goodwill associated with the Marks. You must purchase products only from the franchisor and its affiliates, partnership vendors, or approved vendors as specified [p.94]. This includes samples, marketing materials, and other necessary items for selling Bath Improvements [p.94].