Bath Fitter
Bath Fitter offers franchises in bathtub liners, shower bases, and walls. Known for innovative bathroom remodeling solutions, it operates under proprietary methods and trademarks. Part of the home improvement and renovation industry.
Bath Fitter franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Bath Fitter Business ranges from $225,500 to $515,500, as stated on [p.1]. This includes the amount you must pay to the franchisor and other costs like inventory, tools, and training fees.
What is the initial franchise fee?
The initial franchise fee varies based on whether the transferee is a new Bath Fitter franchisee or has an existing franchised Bath Fitter Business. For a new franchisee, it is at least $80,000, while for an existing franchisee, it is at least $40,000 [p.13]. This fee must be paid when signing the Franchise Agreement [p.14].
What are the ongoing royalty and advertising fees?
Currently, there is no required royalty fee. However, the franchisor reserves the right to impose a royalty fee not exceeding 2.5% of gross revenues at any time, with at least 60 days' notice [p.95]. Additionally, all advertising and promotional materials must conform to standards set by the franchisor, and prior approval is required before use [p.18].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you may have the option to renew your right to operate the Franchised Business for three additional consecutive terms, each lasting five years, provided certain conditions are met and are satisfactory to the franchisor [p.74].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, the franchisor must comply with Minnesota law which generally requires giving 90 days' notice for termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement. Additionally, consent to transfer the franchise will not be unreasonably withheld [p.194]. This isn't specified in the excerpts for other states or scenarios.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if certain events occur with respect to other Bath Fitter® businesses operated by the franchisee or their affiliates, as specified in [p.116]. Additionally, while not explicitly detailed here, the franchisor may have grounds for termination based on changes to the business model or other operating restrictions outlined in the franchise agreement. This isn't specified in the excerpts provided for a complete list of termination grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital requirements for qualification as a franchisee. However, it states that you must have adequate financial resources and capital to operate the Franchised Business [p.121].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.30]. The FDD indicates that there may be competition from other franchisees, company-owned outlets, and other competitive brands within your territory [p.30], and the scope of protected rights granted to other franchisees can vary [p.70].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for key personnel as specified [p.30], which can be supplemented with on-site training at additional cost if requested [p.80]. For ongoing support, the franchisor may require annual certification and participation in refresher training sessions or an Annual Meeting, where attendees must complete micro-sessions and examinations [p.80]. Additional training may also be mandated if the franchisor suspects non-compliance with brand standards [p.80].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can disclose actual or potential financial performance information about its outlets, but it does not make representations about a licensee's future financial performance or the past financial performance of company-owned or licensed outlets. This information must have a reasonable basis and can be provided if the franchisor gives actual records of an existing outlet being considered for purchase [p.38-39].
What am I restricted to selling, and where must I buy supplies?
You are generally restricted to buying certain items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than other options. If you want to source materials not approved by the franchisor, you need to first obtain their written approval [p.3, p.103]. This isn't specified in the excerpts regarding what you are restricted to selling.