Bath Tune-Up Franchise Costs, Fees & FDD

Year Business Began: 1988

Franchising Since: 2020

Headquarters: Aberdeen, South Dakota

Estimated Number of Units: 55

Franchise Description: The franchisor is HFC KTU LLC. Bath Tune-Up franchisees offer bathroom updates and full bath remodels including the sale and installation of tub/shower surrounds, tub/shower conversions, glass shower walls, lighting fixtures, plumbing fixtures such as toilets, walk-through, jetted and soaker tubs, sinks, mirrors, vanity replacements, cabinet hardware and organizers. Franchisees also sell other services and products generally related to home improvement and remodeling, such as flooring, general construction material, plumbing and electrical repairs and replacement. Franchisees may be required to offer additional related services and products as the franchisor develops or refines them.
Training Overview: The training program consists of a combination of in-person and virtual training and lasts for up to 14 days. In-person training takes place in Coppell, Texas and an existing franchised location. In addition, online training totaling 40-60 hours must be completed before classroom training begins. Upon reasonable notice and at no charge to franchisees, the franchisor may require franchisees or their designated personnel to attend additional training courses, seminars, conferences or other programs that the franchisor considers relevant or appropriate to the successful operation of the system.

Territory Granted: During the term of the Franchise Agreement, the franchisor will grant franchisees a protected territory. The franchisor will not establish another franchised business in the territory that sells and installs bath improvements using its system and marks. The territory will be described by United States Postal Service ZIP codes in the franchise agreement. Each territory will begin with about 41,000 households. The ZIP codes making up the territory will not change even if their boundaries are expanded or contracted by the Postal Service or if the population within them decreases or increases.

Obligations and Restrictions: The franchisor prefers franchisees who plan to participate actively in the direct operation and daily affairs of the franchised business. However, if franchisees do not operate the franchised business themselves, they must employ at least one manager on a full time basis. If franchisees operate their franchise as a company, the manager does not have to have an equity interest in the company. Franchisees may offer and sell in the franchised business only the goods and services that the franchisor has authorized franchisees to sell. Unless the franchisor instructs otherwise, franchisees do not have to sell all the products and services it authorizes, but the franchisor suggests that franchisees do so.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two consecutive five-year renewal terms are available if requirements are met.

Financial Assistance: If franchisees meet the franchisor’s credit standards, the franchisor will, at the franchisee’s request, provide financing for the initial franchise fee and part of the initial territory fee. The franchisor discounts the initial franchise fee by 15% for new franchisees who are currently serving or honorably discharged veterans of the United States armed forces and their spouses.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$19,950	$19,950
Initial Territory Fee	$45,000	$45,000
Travel and Living Expenses While Training	$1,750	$3,000
Office/Work Space	$500	$3,000
Vehicle	$7,000	$40,000
Credit Card Processing Technology	$30	$500
Miscellaneous Tools and Office Supplies	$1,000	$3,000
Miscellaneous Opening Costs	$2,000	$3,500
Lead Safe Certification	$300	$500
Contractor’s License and Bond	$150	$1,500
Auto Insurance	$1,000	$3,000
Commercial General Liability Insurance	$500	$2,400
Professional Fees	$750	$3,500
Initial Marketing – 3 months	$15,000	$20,000
Additional Funds – before opening and first three months	$15,000	$25,000
ESTIMATED TOTAL	$109,930	$173,850

 
Other Fees

Type of Fee	Amount
Royalty	If franchisees purchase only one territory, they must pay the greater of (a) 7.0% – 4.0% of the gross revenue for the immediately preceding month or (b) $750 per month for the first year and $1,500 per month thereafter. During the first three months, royalty only paid on actual gross revenue with no minimum.
National Advertising Fund Payment	Franchisees must pay the greater of 1% of the gross revenue for the immediately preceding month or $500.
Technology Fee	$450 for the first territory, $100 for second and subsequent contiguous territories. May be adjusted.
Training for Additional Personnel	First 2 attendees are free. The franchisor may charge up to $150 per day for additional attendees, plus travel, accommodation and meals.
Additional Territory Fee	An amount equal to the then-current initial territory fee if franchisees buy an additional territory in the future.
Encroachment Payment	100% of the franchisee’s gross sales in another franchisee’s territory.
Fees on Transfer	If selling to a new franchisee, greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory.
Transfer Lead Referral Fee	The then-applicable lead referral fee, currently $15,000 plus the amount of any broker fees that the franchisor must pay a third party (not an employee of the franchisor’s).
Renewal Fee	$5,000
Insufficient or Late Payment Fee	Currently $300, subject to change.
Convention Fee	Currently $750 plus travel, accommodation and some meals. Fee will vary depending on venue and location but will not exceed $2,000 annually.
Optional Meetings and Trainings	As determined by the franchisor, but generally $100 - $1,500 depending on venue and mode of delivery.
Additional Training Requested by the Franchisee	Currently $500 - $1,000 per day, plus travel and expenses.
Audit	Cost of inspection or audit.
Insurance	Franchisees must reimburse the franchisor’s costs.
Costs and Attorneys’ Fees	Varies.
Indemnification	Varies.

The above information has been compiled from the FDD of Bath Tune-Up. Year of FDD: 2025.
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