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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, L.L.C. 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 90% 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. The training period for Operations and Installation is currently 5 days for each portion of the Training Program, offered over the course of 2 weeks. 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 franchisee must sell the bathroom remodeling services, the Required Products, designated bathroom products and related bathroom design services and products that the franchisor designates as a part of the Licensed Methods.

Estimated Number of Units: 155

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $18,000 $120,000
Start-up Package $7,500 $7,500
Initial Training $0 $495
Insurance Premium - 3 months $2,000 $6,000
Business License and permits $2,000 $5,000
Vehicle(s) $3,500 $50,000
Equipment, Supplies & Inventory $12,000 $50,000
Computer Setup and Annual Database Access $0 $1,500
Technology Fee $300 $900
Internet - 3 months $100 $300
Mobile Showroom $4,000 $25,000
Showroom/Warehouse $3,000 $5,000
Promotional Campaign $2,000 $10,000
Professional Fees $0 $1,000
Additional Funds - 3 months) $25,000 $75,000
ESTIMATED TOTAL $81,400 $352,695
Other Fees
Type of Fee Amount
Royalty 4% to 6% of the monthly gross sales generated by the Business or a monthly minimum of up to $2,400, whichever is greater.
System Branding Fund Fee (SBF) 2% of the monthly gross sales generated by the Business or a monthly minimum of $250 (after Month 6) or greater, whichever is greater.
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.
Additional 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.
Dishonored Check or Electronic Funds Transfer $100 each.
Interest 12% per annum.
Insurance Premiums Re-Bath L.L.C.’s actual cost.
Indemnification and Attorneys’ 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 $180 per user, per month.
Testing Fee 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.

The above information has been taken from the FDD of Re-Bath. Year of FDD: 2015

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