Re-Bath
Date of Incorporation: 1991
Franchising Since: 1991
Headquarters: Tempe, Arizona
Business Description: Re-Bath sells and installs custom manufactured bathtub liners, shower base liners, wall panels and ancillary products such as shower doors, valves, plumbing fixtures, and installation tools, products and supplies.
Franchise Offer: Re-Bath grants or awards franchises for a traditional Re-Bath Franchise to an individual or entity which gives the franchisee the right to operate a franchised business under the System that sells and installs Re-Bath Products to the general public in a specific territory. The Franchise Agreement gives the right to use the Proprietary Marks and the System solely in connection with the operation of the Franchised Business, as provided in the Agreement. Small, medium and large market franchises are available.
Financial Assistance: The franchisor does provide financial assistance for the purchase of equipment. In addition, if the franchisee meets Re-Bath’s credit standards, they will finance the purchase of the franchisee’s Start-Up Package for six months. 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: Within 60 days after signing the franchise agreement, the franchisor will provide a two-day preparatory training course (currently conducted in Mobile, Alabama) to the franchisee, a five-day initial operations training program (which is currently conducted at our Tempe, Arizona headquarters) and a five-day initial installation training program for one of your full time installers (which is currently conducted in Arden, North Carolina or Decatur, Illinois). These courses and programs are collectively called the initial training program. At least one owner of the franchise is required to attend the two-day preparatory training and the five-day initial operations training. Re-Bath may also hold seminars, sales classes, special conferences and advanced installation training from time to time, which the franchisee may be required to attend. The franchisee must also have at least one person, either the franchisee, his or her manager or a key employee, attend Re-Bath’s National Franchisee Conferences, which are held approximately every 12 to 24 months.
Territory: The franchisee will be granted an exclusive area. The territories are within defined geographical areas and can be outlined by counties, city limits, zip codes, streets, roads, or highways.
Term of Agreement and Renewal: The term of the franchise agreement is seven years. Renewal or extension is one renewal term of seven years, subject to company approval and contractual requirements.
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.
Estimated Number of Units: 220
Investment Tables:
Initial Investment
(Based on large market, estimates based on a small market are available in the Re-Bath FDD):
| Name of Fee | Large Market | Medium Market | Small Market |
|---|---|---|---|
| Initial Franchise Fee | $60,000 - $100,000 | $28,000 - $60,000 | Up to $28,000 |
| Start-Up Package | $7,000 | $5,500 | $4,000 |
| Pre-Opening Salaries, Travel, Transportation and Initial Training | $1,500 - $5,000 | $1,500 - $4,500 | $1,500 - $3,000 |
| Improvements, Construction Costs (showrooms) | $3,000 - $30,000 | $3,000 - $30,000 | $3,000 - $30,000 |
| Mall Kiosk | $6,750 each | $6,750 each | $6,750 each |
| Barricade Graphics | $400 - $800 | $400 - $800 | $400 - $800 |
| Real Estate (for mall kiosks or barricade graphics placement) | $1,500 | $1,500 | $1,500 |
| Mobile Showroom | $0 - $32,495 | $0 - $32,495 | As arranged by franchisee |
| Mobile Showroom Registration and Taxes | $200 - $6,000 | $200 - $6,000 | $200 - $6,000 |
| Home Show Booth | $15,000 | $15,000 | $15,000 |
| Custom In-store Product Displays | $0 - $10,000 | $0 - $10,000 | $0 - $10,000 |
| Real Estate (for showroom) | $325 - $1,875 | $325 - $1,875 | $325 - $1,875 |
| Signage (for showrooms) | $3,000 - $5,000 | $3,000 - $5,000 | $3,000 - $5,000 |
| Vehicle Wraps | $1,000 - $4,000 | $1,000 - $4,000 | $1,000 - $4,000 |
| Opening Advertising | $13,500 - $27,000 | $10,100 - $20,200 | $6,700 - $13,400 |
| National Advertising Fund (per month) | $1,595 - $10,000 | $895 - $10,000 | $395 - $10,000 |
| Insurance | $3,000 - $5,000 | $3,000 - $5,000 | $3,000 - $5,000 |
| Supplies/Office and Misc | $2,000 - $6,000 | $2,000 - $6,000 | $2,000 - $6,000 |
| Additional Funds-three months | $7,500 - $60,000 | $7,500 - $29,000 | $7,500 - $13,125 |
| Permits, Certificates and Licenses | $1,000 - $6,000 | $1,000 - $6,000 | $1,000 - $6,000 |
| ESTIMATED TOTALS | $149,400 - $344,550 | $98,360 - $266,310 | $62,270 - $210,945 |
Ongoing Fees:
For Traditional Franchises
| Name of Fee | Amount |
|---|---|
| Royalty Fee | $5 for each wall panel; $14 for replacement tubs and shower bases; and $28 for each bathtub liner or shower base liner you purchase from Re-Bath or an approved supplier |
| 1-800-BATH-TUB | $249 per month for a Large Market Territory; $199 per month for a Medium Market Territory; and $150 per month for a Small Market Territory |
| Transfer | $5,000 |
| Document Fee | $350 |
| Renewal | $2,000 |
| Emergency Operating Fee | $320 per person, per day, Operating Fee plus travel, room and board expenses for franchisor’s staff |
| Royalty Audit | Cost of audit |
| Sales Audit | Cost of audit |
| Interest | 18% per annum from date due |
| Initial Training Program (one person) | $0 |
| Home Depot Program | 15% of the payment received from the customer for products and installation |
| In-Store Signage and Product Display for Home Depot and Ace Hardware stores | Signage - $500 (for each store) Displays - $1,500 (for each store) |
| 10' x20'Home Show Booth | Up to $15,000 |
| Mall Kiosks | $6,750 (each) |
| Barricade Graphics | $400-$800 ($4.50 per square foot) |
| Customer Service | Up to 100% customer's original amount for products and services |
| Supplier or Product Testing Fee | $100 to $5,000, depending on the item(s) tested. |
Date of FDD: 2011
The above information has been compiled from the FDD of Re-bath along with online sources.
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