Five Star Bath Solutions
Five Star Bath Solutions offers bathroom renovation franchises, providing qualified individuals with the tools to operate under their brand name. Known for quality services, this Utah-based LLC specializes in home improvement within the bathroom sector.
Five Star Bath Solutions franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a single Five Star Bath Solutions franchise is between $85,500 and $128,500. This includes the initial investment that must be paid to the franchisor or its affiliate [p.1].
What is the initial franchise fee?
The Initial Franchise Fee is paid in consideration for sales expenses, administrative overhead, return on investment, start-up costs related to executing the Franchise Agreement and opening the franchise, as well as the franchisor's lost or deferred opportunity to sell franchises in the territory. This fee is uniform unless increased after certain growth levels are reached [p.14].
What are the ongoing royalty and advertising fees?
The FDD does not specify exact amounts for ongoing royalties and advertising fees. However, it indicates that you must make minimum royalty payments regardless of sales levels [p.5], and if you fail to meet minimum revenue targets, you may need to pay an adjusted minimum royalty [p.46]. Similarly, initial advertising materials and franchise apparel costs are around $5,000 [p.14], but this is for the initial purchase only, not ongoing fees.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires notifying the franchisor in writing and giving them sufficient information for due diligence. The franchisor has a right of first purchase within 60 business days after receiving this notification [p.179]. Additionally, you must comply with all criteria set forth in the 'Sale or Assignment' and 'First Right of Refusal' sections [p.6, p.216].
On what grounds can the franchisor terminate the agreement?
According to [p.215] and [p.6], a franchisor can terminate a franchise prior to expiration for good cause, which includes the failure of the franchisee to comply with any lawful provision of the Franchise Agreement. The franchisee must be given written notice and a reasonable opportunity (no more than 30 days) to cure such failure before termination can occur.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts focus on ongoing expenses and initial investment escrow but do not detail specific financial requirements such as net worth or liquid capital needed to qualify for the franchise.
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory under the franchise agreement [p.46]. As long as you comply with certain conditions, including meeting minimum annual revenue targets, Five Star Bath Solutions will not establish another business within your designated Franchise Territory [p.46]. Failure to meet these revenue targets could result in a reduction of your territory size [p.179].
What training and ongoing support does the franchisor provide?
The franchisor provides standards, ongoing training, and ongoing support [p.160]. Additionally, anyone managing or leading operations at the franchise must complete the required training course [p.158].
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 does not make any financial performance representations except for historical data from existing franchisees who operated and reported data for at least a full calendar year. This information includes average sales and key performance indicators but does not account for costs or expenses [p.60]. Additionally, the franchisor may provide actual records of an existing outlet if you are purchasing one specifically [p.65].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those services or products that meet the specifications and standards of quality and quantity outlined in the Operations Manual. You must sell all approved items and services as specified by the franchisor. Regarding supply procurement, you may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options available to you. [p.4, p.160]