ReBath
ReBath franchises offer bathroom remodeling services including custom bathtub liners, shower bases, and ancillary products. Known for providing comprehensive renovation solutions, ReBath operates in the home improvement and remodeling sector.
ReBath franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a Re-Bath® franchised business ranges from $275,875 to $606,925. This range includes an amount between $56,000 and $60,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is a non-refundable fee charged upon execution of a franchise agreement, typically with a 10-year term. This fee is recognized by the company in two parts: 20% at contract inception and the remaining 80% over the term of the franchise agreement. [p.192, p.206]
What are the ongoing royalty and advertising fees?
Ongoing royalties are generally calculated as a percentage of gross sales reported by franchisees, as a percentage of installed sales reported by franchisees, or based on minimum royalty fees, which are determined by multiplying the population in the franchise territory by a fixed rate per person per month. These royalties, including fund contributions to the Brand Fund, Advertising Fund, and Media Fund, are recognized as the underlying franchisee sales occur and are collected monthly following the end of each sales period [p.192, p.206]. This isn't specified in the excerpts for advertising fees beyond general expenses being expensed as incurred or capitalized and expensed as utilized [p.205].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically has a 10-year term [p.192]. The document does not specify whether you can renew the agreement or provide details on renewal processes [p.88].
Can I sell or transfer my franchise, and what does that require?
You can offer to transfer ownership of your franchise, but the franchisor has the right to refuse this transfer for good cause [p.5]. If a transfer is approved, you must pay a non-refundable transfer fee equal to 50% of the current initial franchise fee, and this payment should be made when the transferee signs the new franchise agreement or begins training [p.125].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable period, which cannot exceed 30 days [p.5]. Additionally, this termination must be based on 'reasonable cause' as defined under Virginia Retail Franchising Act or Virginia law, otherwise it may not be enforceable [p.265].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, company-owned outlets, or other channels controlled by the franchisor within the Protected Territory [p.54]. This territory is subject to certain restrictions on activities like marketing and service provision outside of it [p.55], but you are not guaranteed exclusivity within that area.
What training and ongoing support does the franchisor provide?
The franchisor provides initial and ongoing training across various modules such as marketing, sales, product & installation, customer service, and office management [p.9]. This training is mandatory for each new franchisee, including resales of existing franchises, and must be successfully completed before operations begin [p.50]. Ongoing support includes the potential to offer new or different products and services, as well as using new methods, procedures, and standards from time to time [p.9].
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, ReBath, does not make any financial performance representations other than the preceding one. They also do not authorize their employees or representatives to make such representations either orally or in writing [p.67]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.67].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those products and services that the franchisor has authorized. You must buy all necessary items from approved and designated suppliers, including manufacturers and distributors [p.31].