Five Star Bath Solutions Franchise Costs, Fees & FDD

Year Business Began: 1996

Franchising Since: 2008

Headquarters: Springville, Utah

Estimated Number of Units: 325

Franchise Description: The franchisor is Five Star Bath, LLC. The franchisor offers franchises to qualified individuals and entities to own and operate a “Five Star Bath Solutions” franchise under its service marks, trade names, programs, and systems. Franchisees offer bathroom renovation services to the public under the service marks and the Five Star Bath Solutions programs and systems.
Training Overview: The franchisor’s pre-training cycle is approximately 6-8 weeks of training and familiarization of the Five Star Bath Solutions program before franchisees start their business. Pre-training will be held virtually and conducted by the franchisor’s brand coaches. The owner’s training week will be conducted in Warren, Michigan unless another location is designated. The training program must be completed by all franchisees or their designated managers, unless, at the franchisor’s reasonable discretion, based upon a franchisee’s experience, it is deemed unnecessary. After completion of the mandatory training program, franchisees or their designated installer must also receive installer training. This may be completed immediately following the mandatory training program at the franchisor’s headquarters. Franchisees or their manager must attend the regularly scheduled huddles, meetings, and conferences which are identified and scheduled by us as set forth in the Operations Manual.

Territory Granted: The franchisor will grant franchisees a specific territory or location within which they will operate their franchised business, which will be defined in the Franchise Agreement, generally as a set of ZIP codes. A typical franchise territory consists of up to approximately 150,000 households. The exact location of the franchise territory offered to the franchisee will depend upon the franchisor’s market analysis, market penetration plans, and franchise placement strategies. The franchise territory is an exclusive territory. So long as the Franchise Agreement is in force and franchisees are not in default of any material provision of the agreement, the franchisor will not establish or allow others to establish a Five Star Bath Solutions business within the franchise territory. To maintain territory protection, franchises must meet certain minimum annual revenue targets, or the franchisor will have a right to reduce the territory size.

Obligations and Restrictions: The franchisor recommends that franchisees, or one of their owners if the franchisee is a corporation or partnership, participate fully in the actual day-to-day operation of the franchise business. However, franchisees are not required to participate in the day-to-day operations of the franchise by the Franchise Agreement or any other contractual obligation with the franchisor. Franchisees may designate a manager to assume responsibility for day-to-day operations. The franchisor requires that franchisees use, offer, and sell only those products and services that it approves in writing. Franchisees must offer all products and services that the franchisor designates as required by its franchisees.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they may renew for periods of 10 years under the terms of the then-current Franchise Agreement, which may have 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. If franchisees meet the requirements for the veteran discount program, they may qualify for a 10% discount on the initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$59,500. To acquire additional territory, a fee of $0.40 per household shall apply.
Quick Start Package	$25,000	$25,000
Annual Conference Registration Deposit	$1,000	$1,000
Marketing	$35,000	$65,000
Business Licenses and Permits	$2,000	$5,000
Warehouse/Premises and Show Displays	$1,500	$4,500
Supplies, Inventory, and Equipment	$7,500	$32,500
Computer Equipment and Software/License Fees	$1,000	$2,000
Travel and Living Expenses to Attend Training	$1,500	$3,000
On-Site Installer Training Cost/ Tuition	$1,000	$2,000
Vehicle/ Trailer (and Wrap)	$500	$32,500
Insurance	$5,000	$7,000
Professional Services	$500	$1,500
Recruiting and Personnel	$2,000	$5,000
Working Capital (Additional Funds and Living Expenses – 3 Months)	$20,000	$50,000
ESTIMATED TOTAL (assumes that the owner is the salesperson)	$162,000	$293,500

 
Other Fees

Type of Fee	Amount
Royalty Fee	Typically, 6% of gross revenue with $1,000 monthly minimum commencing on the 7th month after franchisees commence operations and increasing until their 36th month of operations; thereafter, the monthly minimum will be $2,500 per month. Exceptions apply.
National Marketing Fee	Up to 2.5% of monthly gross revenue with $200 monthly minimum commencing on the 7th month after franchisees commence operations.
Territory Marketing Requirement	Franchisees will spend at least 10% of their annual gross revenue on their territory advertising (which includes the national marketing fee). Included in this, will be the cost of online lead generation services delivered by the franchisor’s designated vendor.
Regional Marketing Fund Contribution	Up to 2% of gross revenue according to a vote of the franchisees in the region. Currently 0.
Call Center Monthly Fees	Vendor’s rates for service.
Additional Training	$300 per day and franchisees must reimburse the franchisor for its out of pocket costs.
Refresher Training Programs and Seminars	$300 per day or then-current rates.
Cost to Attend Annual Convention and Trade Show	$1,000 to $3,500
Annual Convention and Trade Show Fee	The then-current registration fee.
Transfer Fee	Greater of $10,000 or 5% of proposed purchase price for the business, not to exceed 50% of the then-current franchise fee. Note, any sales commission owed as a result of the transfer shall remain the franchisee’s obligation, in addition to the transfer fee.
Renewal	Franchisees will reimburse the franchisor for its out-of-pocket costs concerning the renewal up to $2,500 plus applicable taxes.
Step-In Right Costs	Out-of-pocket expenses and costs the franchisor incurs.
Non-Reporting Fee	$250 per day.
Late Charge	1.5% per month.
Late Payment Penalty	$10 per day from the date due until paid in full.
Addendum Fee	$250
Relocation	Franchisees will reimburse the franchisor for its out-of-pocket costs concerning the relocation.
Accounting Software Fees	$0 to $250 per month.
Bookkeeping Service Fee	$0 to $300 per month.
Operations Software – Hosting and Maintenance Monthly Software Support Fee	$1,100 to $2,500 per month.
Software Technical Support Fee	Up to $50 per hour, if the franchisor decides to collect this fee.
Product Testing Costs	Out-of-pocket expenses and costs the franchisor incurs.
Audit	The franchisor’s costs for the audit if the franchisee understates revenue by more than 2% or fail to deliver to us required reports on time.
Warranty Escrow on Transfer	Up to 5% of sales price.
Post-Termination Default Fee	$200 per day.
Transferree Commission	10% of transaction amount, upon completion of your transfer of the franchise to a transferree; or if making use of our franchise broker relationships, the actual amount of the commission arising from such use.
Unauthorized Marketing Fee	$500 per unapproved marketing item.

The above information has been compiled from the FDD of Five Star Bath Solutions. Year of FDD: 2025.
Franchise Direct's Disclaimer