Re-Bath Franchise Costs, Fees & FDD

Year Business Began: 1991

Franchising Since: 1991

Headquarters: Phoenix, Arizona

Estimated Number of Units: 145

Franchise Description: ReBath, LLC is the franchisor. The franchisor’s parent company is Home Brands Group Holdings, LLC. 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.
Training Overview: The initial or onboarding training program is mandatory for each new franchisee (including resales of existing franchises). This training must be successfully completed before franchisees begin operations and open for business. The operating owner or the manager must attend this training. The number of individuals the franchisor will designate as required to complete the training will vary based upon the franchise’s organizational structure and individual roles. This training is hosted at the franchisor’s corporate headquarters in Phoenix, Arizona, or other corporate facilities. Typically, within 4-6 weeks prior to the opening of the franchise, franchisees will participate in in-depth training on the sales program and tools. Typically, within 2-4 weeks prior to the opening of the franchise, franchisees will participate in in-depth training on the installation of product offerings. These trainings take place both remotely and at the franchisor’s corporate facilities that it designates. Prior to the opening of the franchise, franchisees will participate in in-depth training on how to train their employees that will be working in the franchise business. Finally, intermittently during the time following execution of the Franchise Agreement and the opening of the franchise, franchisees will be trained on the other critical components of the franchisor’s system. This training may take place remotely via webinars, screen shares, and phone calls or may be conducted in person at headquarters in Phoenix, Arizona or other training facilities the franchisor designates. Each year the franchisor conducts certification training to make franchisees aware of new programs and requirements it has launched or will soon launch. The individual responsible for managing the day-to-day operations of the business, whether the operating owner or manager, is required to attend this training. Each year the franchisor holds an annual owners’ retreat at a place and on dates determined by the franchisor. The retreat may be hosted outside of the United States. The franchisor also provides online training on a variety of topics through its learning management software system. The franchisor may also provide additional in-person training opportunities that are recommended but optional to attend.

Territory Granted: During the term of the Franchise Agreement, the franchisor will grant franchisees the right to offer and sell single-family residential bathroom remodeling services and related products and services identified by the franchisor marks within a protected territory. Franchisees may not advertise, sell or install products or services to anything other than existing single-family residences without the franchisor’s prior written consent. Franchisees are prohibited from advertising, selling or installing products or services for new construction without the franchisor’s prior written consent. Typically, the protected territory will consist of a population of between 750,000 and 1,250,000 people. However, the franchisor may offer larger or smaller protected territories and charge an initial franchise fee that is adjusted accordingly. The franchisee’s showroom, warehouse and office must be located within their protected territory. Franchisees are not permitted to engage in any marketing, install any products, or provide any services, at locations outside of the protected territory, unless they have obtained the franchisor’s prior written consent.

Obligations and Restrictions: The franchisor grants franchises to both those who plan to actively participate in the direct operation and daily affairs of the franchised business, and those seeking a more passive investment. If franchisees operate the franchised business themselves and are a business entity, they must designate one owner of the business who owns at least 20% of the business to be responsible for the daily operations of the franchised business and to serve as the franchisor point of contact (the operating owner). If franchisees do not operate the franchised business themselves, they must employ at least one manager on a full-time basis who will be responsible for daily operations and serve as the franchisor’s point of contact (the manager). If the franchisee is a company, the manager does not have to have an equity interest in the company. If franchisees are an individual, they and their spouse must sign the Franchise Agreement. Franchisees may offer and sell from the franchised business only those goods and services that the franchisor has authorized them to sell. Franchisees must offer and sell all goods and services the franchisor requires.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two renewal terms of five years each are available, subject to the execution of a renewal Franchise Agreement which may contain materially different terms and conditions than the original contract.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
 
Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Initial Training	$0	$5,000
Travel and Living Expenses During Training	$2,000	$8,000
Insurance Premium (auto and general commercial liability), 3 months	$3,000	$10,000
Business License and Permits	$2,000	$5,000
Vehicle(s)	$30,000	$80,000
Vehicle(s) “Wrap” Advertising	$400	$4,000
Equipment, Supplies & Inventory	$18,000	$50,000
Internet, 3 months	$100	$300
Showroom/Warehouse/Office	$60,000	$100,000
Professional Fees	$1,000	$4,000
Grand Opening Campaign and Minimum Local Advertising Requirement	$34,375	$40,625
Additional Funds, 3 months	$75,000	$250,000
ESTIMATED TOTAL	$275,875	$606,925

 
Other Fees

Type of Fee	Amount
Royalty Fees	6% of weekly gross sales (if weekly gross sales are less than $0.04/person) or 5% of weekly gross sales (if weekly gross sales are greater than or equal to $0.04/person).
Minimum Royalty Fees	Year 1: $150 per week. Year 2: $350 per week. Year 3: $700 per week. Year 4 and beyond: $800 per week.
Minimum Annual Gross Revenues Deficiency Fee	The difference between the minimum annual gross sales generated by the franchised business in a year and the amount described below: Year 1: $0.50 per person. Year 2: $ 1.00 per person. Year 3 and beyond: $ 1.50 per person.
Advertising Contribution	2% of gross sales.
Minimum Advertising Contribution	Year 1: $75 per week. Year 2: $175 per week. Year 3: $350 per week. Year 4 and beyond: $400 per week.
Cooperative Contribution	Up to 40% of the minimum local advertising requirement.
Managed Marketing Services Fees	The then-current fees.
Additional, Refresher, or Replacement Training Fee	The then-current fee, currently $500 per day, per trainee if training takes place at the franchisor’s corporate headquarters; $500 per day, per trainer if taking place at the franchisee’s location; for product installation training, there is an additional charge of $1,800 per trainee for training materials.
Annual Owners’ Retreat	The then-current fee, currently $1,000 per person.
Annual Certification Training	The then-current fee, currently $200 per person.
Renewal Fee	25% of the then-current initial franchise fee.
Transfer Fee	50% of the then-current initial franchise fee.
Dishonored Check	$100 each plus any fees charged by the franchisor’s bank.
Late Payment/Late Report Charge	$150 for each week or part of a week that the payment or report is late.
Interest	1.5% per month, or the maximum rate permitted by law, whichever is less.
Damages Including Attorneys’ Fees and Costs	Varies according to loss.
Warranty Claim and Customer Complaint Costs and Expenses	Varies according to loss.
Liquidated Damages for an Unauthorized Installation, Project or, Sale	For each unauthorized installation, project, or sale made in another franchisee’s territory, the franchisee must pay the franchisor or the affected franchisee, licensee, or affiliate liquidated damages equal to 50% of their then-current average ticket.
Reimbursement of Payments on the Franchisee’s Behalf	100% of the amount the franchisor paid on the franchisee’s behalf.
Technology Fee	The then-current fee. The then-current fee, currently comprised of (a) a monthly territory component of $1 for every 1,000 people in the territory population, plus (b) monthly user rates of $12 to $213 per staff member using such technologies.
Inspection or Audit	$10,000

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