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Re-Bath Franchise Cost & Fees


Date of Incorporation:  1991

Franchising Since: 1991

Headquarters: Tempe, Arizona

 

Business Description: Re-Bath, L.L.C. is the franchisor. Re-Bath franchisees provide bathroom remodeling services, including installation of custom manufactured bathtub and shower base liners, replacement bathtubs and shower bases, wall panels and ancillary products such as shower doors, valves, plumbing fixtures, and installation tools, products and supplies.

 

Franchise Offer: Re-Bath offers a Re-Bath franchise under an agreement that gives franchisees the right to operate a Franchised Business under its distinctive business format, systems, methods, procedures, designs, standards and specifications selling and installing bathroom renovation services and products in a specific geographic area.

 

Financial Assistance: Re-Bath will finance up to a maximum of 100% of the Population Fee portion of the Initial Franchise Fee, if the franchisee qualifies for financing. Re-Bath is included on the Small Business Association's Franchise Registry. This listing should ensure expedited loan processing for prospective franchisees seeking SBA financing. Re-Bath does not guarantee any of the franchisee’s obligations to third parties.

 

Training and Assistance: Re-Bath we will provide Operations training and Installation training, jointly referred to as the Training Program. Training will take place in Tempe, Arizona, or such other location that Re-Bath may designate. Re-Bath may also offer all or a portion of the Training Program via webinar/video conferencing. Franchisees may send two people to the Training Program without paying tuition. Re-Bath may occasionally also hold seminars, sales classes, reunions and advanced training, which franchisees may be required to attend up to once a year. Franchisees must also send one person, either the franchisee, his/her General Manager or a key employee, to attend the Reunion, which is held approximately every 18 to 24 months.

 

Territory: Franchisees will not receive an exclusive Territory. Franchisees do not have any options, rights of first refusal, or similar rights to acquire additional franchises except for their right of first refusal to service System Accounts in your Territory or unless they enter into an Option to Purchase Additional Territory Agreement. A Territory, and an Option Territory, will be defined by city or county limits, zip code areas, street boundaries or other reasonable boundaries. The Territory must be a minimum population of at least 150,000. Option Territories, if applicable, and must have a minimum population of at least 150,000.

 

Term of Agreement and Renewal: The term of the franchise agreement is 10 years. Renewal or extension is one renewal term of 10 years, subject to execution of a renewal Franchise Agreement which may contain materially different terms and conditions than the original contract.

 

Obligations and Restrictions: The franchisee must devote full time and best efforts to the management and operation of the Franchised Business. The franchisee must also have a competent, conscientious, trained staff, including a fully trained manager (which may be the franchisee), a sales representative and an installation technician. The franchisee is required to operate the Franchised Business a minimum of eight hours during each weekday, Monday through Friday, and a minimum of seven hours each weekend, unless the Franchised Business is in a mall or other similar shopping area that requires fewer minimum hours of operation, in which case, the Franchise hours may be the minimums required in writing by the mall or shopping area. The location, design and layout of each showroom must be approved by the franchisor. At least one owner of the Business is required to attend and complete the Training Program. At least one additional key manager or employee must attend and complete the Operations training.

 

Estimated Number of Units: 210

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $30,000 $115,000
Start-Up Package $7,500 $7,500
Vehicle $3,500 $40,000
Equipment, Supplies & Inventory $12,000 $50,000
Insurance $2,000 $6,000
Promotional Campaign
$2,000 $10,000
Training Expenses $1,000 $4,000
Permits & Licenses
$2,000 $500
Mobile Showroom
$4,000 $25,000
Showroom/Warehouse $5,000 $5,000
Additional Funds - 3 months $25,000 $75,000
ESTIMATED TOTALS $94,000 $342,500

 

Other Fees:

Type of Fee Amount
Royalty
The greater of 4% to 6% of Gross Sales or Minimum Royalty Fees. Special rates apply to conversions.
System Branding Fund Fee
The greater of 2% of Gross Sales or Minimum SBF Fees. Special rates apply to conversions.
Minimum Local Marketing Spending
Re-Bath reserves the right to require that franchisees spend an amount on local marketing, which it anticipates may be approximately $60,000, annualized, during the first year of operations and 8% of the annual Gross Sales in later years.
Regional Advertising Cooperative
May vary with recurring contributions of up to 2% of Gross Sales; reduces Minimum Local Marketing Spending proportionally. This amount is in addition to the SBF Fee.
Initial Training Expenses
Re-Bath estimates the living expenses and other costs of attending initial training will range from $1,000 to $4,000. Training tuition for
the third and subsequent trainees is $1,500 per person for installation training; $375 per person for observation (only) of installation training; and $495 per person for operations training for each additional person and all personal expenses, such as lodging, transportation, food and wages for each additional person.
Aditional Training Fee
The then-current training fee (currently, $500 per day, per person).
Document Fee
$350
Renewal Fee
$5,000
Transfer Fee
5% of the total consideration given for the Business or $5,000, whichever is greater.
Transfer Training Fee
If franchisees buy a Franchise from one of an existing franchisees, Re-Bath will train two people and provide selected Start Up Package materials for $3,500
Fees Required at Transfer Related to Escrow for Warranty Claims
Service rate of $70 per hour for warranty claims, plus $50 handling fee per warranty claim. If no warranty claims, $150 handling fee.
Annual Reunion Registration Fee
Up to $1,000 per person. If franchisees do not attend the Reunion, they must pay the $1,000 fee and any training materials from Reunion will be provided to franchisees. Re-Bath may, but is not required, to offer discounts on this fee that may apply to you.
Emergency Operating Fee
$320 per person, per day, plus travel, room, board and expenses for staff.
Late Report Fees
$50 per Report.
Dishonored Check or Electroninc Funds Transfer
$35 each.
Interest 12% per annum.
Insurance Premiums
Re-Bath's actual cost.
Indemnification and Attorney's Fees and Costs Varies according to loss.
Liquidated Damages According to a formula based on your history of Gross Sales.
Fees for Additional Websites Annual fee of $15 for each domain name, plus a monthly fee of up to $30 for each Additional Website.
Customer Service Up to 100% of the customer’s cost for products and services.
Operating System Software Up to $80 per user, per month.
Testing Free for New Supplier Approval Actual cost of test and related expenses.
Audit Costs and expenses of audit plus amounts owed, if any, plus interest at highest legal rate.

Date of FDD: 2013

The above information has been compiled from the FDD of Re-bath along with online sources.

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