Five Star Bath

Five Star Bath franchise presents a compelling opportunity within the burgeoning home renovation and specialized bath remodeling sector, a market consistently driven by homeowner demand for functional upgrades and aesthetic enhancements. Established in February 2005 in Utah, Five Star Bath Solutions, LLC initiated its franchising efforts in March 2005, carving out a distinct niche by focusing exclusively on bath and shower product sales and installations. The brand's core offerings encompass a comprehensive suite of services including modern bath and shower surrounds, efficient tub-to-shower conversions, accessible walk-in tubs, custom shower enclosures, high-quality shower doors, and professional bathtub refinishing, alongside a curated selection of related accessories. This specialized approach allows the Five Star Bath franchise to concentrate resources and expertise on a defined service area, promising homeowners swift, high-quality transformations for one of the most vital spaces in their residences. The company's principal business address is located at 2060 S. 2300 E., Suite 200, Salt Lake City, Utah 84109, reflecting its long-standing presence in the region. The leadership team, deeply rooted in the company's genesis, includes Todd Leavitt, the founder and Chief Executive Officer, who has guided the organization since its inception in 2005. He is joined by Scott Hill, Chief Operations Officer and Director, David Leavitt, Chief Financial Officer, and Troy Leavitt, Chief Technology Officer, all of whom have been integral to the company since 2005 or 2012, bringing extensive experience and continuity to the Five Star Bath franchise system. This seasoned executive team underpins the brand’s strategic direction and operational integrity, fostering a stable environment for its network of franchisees. The company leverages the expertise of its affiliates, including 5 Star Solutions, Inc., formed in 2003, which directly offers bath remodeling services, alongside 5 Star General Management, Inc., 5 Star Training, Inc., and 5 Star Marketing, Inc., established in 2007, 2012, and 2012 respectively, all designed to provide specialized support across various facets of the business. These interconnected entities ensure a robust support system for every Five Star Bath franchise owner, from initial setup to ongoing operational and marketing endeavors, solidifying the brand's commitment to franchisee success. The strategic focus on bath and shower solutions allows for streamlined operations and targeted marketing, positioning each Five Star Bath franchise for efficiency and relevance in a competitive home services landscape.

The broader industry landscape in which the Five Star Bath franchise operates is characterized by sustained demand for home improvement and renovation services, particularly those that enhance comfort, accessibility, and property value. Homeowners consistently seek professional solutions for updating critical areas like bathrooms, driven by factors such as aging infrastructure, evolving design preferences, and the desire for greater functionality. The specialized nature of bath remodeling, encompassing both aesthetic upgrades and complex functional installations, distinguishes it from general contracting, requiring specific product knowledge, installation expertise, and streamlined project management. The Five Star Bath franchise model is designed to meet these specific demands, providing a targeted service that resonates with a broad demographic of homeowners. The brand's emphasis on efficiency and quality in bath and shower installations directly addresses consumer desires for quick, reliable, and aesthetically pleasing renovation outcomes. By concentrating solely on bath and shower solutions, the Five Star Bath franchise avoids the complexities and broader competitive pressures faced by general home remodelers, allowing for greater specialization and expertise. This focused approach enables the franchisor to develop highly effective training programs, cultivate strong vendor relationships for specialized products, and implement tailored marketing strategies that speak directly to the needs of its target customer base. The consistency of brand messaging and service delivery across all units, supported by the national advertising fund, reinforces consumer trust and recognition for the Five Star Bath franchise. The operational model, which can include a home-based start-up or a small office/warehouse, provides flexibility for franchisees, minimizing overhead while maximizing service reach. This adaptable structure allows the Five Star Bath franchise to penetrate diverse markets, from densely populated urban centers to more suburban and rural communities, catering to varying levels of demand for bath renovation services. The proven systems and processes established by the franchisor aim to simplify the complexities of the remodeling business, making it accessible for entrepreneurs without extensive prior construction experience, but with strong business acumen and a commitment to customer satisfaction.

Investing in a Five Star Bath franchise requires a comprehensive understanding of the initial capital outlay and ongoing financial commitments. The estimated initial investment range for establishing a Five Star Bath franchise is between $96,500 and $196,000, reflecting the flexibility in operational setup from a home-based model to a small office and warehouse configuration. A significant component of this initial investment is the Initial Franchise Fee, which stands at $45,000 for a single territory typically encompassing a population of 100,000 to 200,000 people. However, the Five Star Bath franchise offers incentives, reducing this fee to $35,000 for qualifying veterans, first responders, or individuals acquiring additional territories under a multi-unit development agreement. For a multi-unit commitment, the initial fee for the first territory is $45,000, with subsequent territories each costing $35,000, subject to a defined opening schedule. Beyond the franchise fee, prospective franchisees must budget for Initial Training Expenses, estimated between $2,500 and $5,000, primarily covering travel, lodging, and meals for the mandatory five-day training program in Salt Lake City, Utah, for the franchisee and up to two additional employees. Real estate costs for a Five Star Bath franchise can range from $0 to $10,000, underscoring the potential for a home-based operation, or the need for a modest office or warehouse space. Leasehold improvements, if required for a physical location, are estimated between $0 and $20,000. Essential Equipment, Vehicles, and Tools will necessitate an investment of $12,000 to $30,000, covering an initial service vehicle, necessary installation tools, and general office equipment. An Initial Inventory investment of $5,000 to $10,000 is required to ensure a foundational stock of products. Further technological outlays for a Computer System and Software are estimated at $3,000 to $5,000, providing access to proprietary CRM and project management tools. Signage, if a physical location is chosen, could range from $0 to $2,000. Insurance premiums are projected to be between $2,000 and $4,000, while Professional Fees for legal and accounting services before opening are estimated at $2,000 to $5,000. Grand Opening Advertising is a crucial initial expense, with a recommended budget of $5,000 to $10,000 to generate initial market awareness. Finally, Additional Funds for the first three months of operation are advised at $30,000 to $50,000, covering working capital, payroll, and unforeseen expenses until the business achieves self-sufficiency, highlighting the importance of sufficient liquid capital. Ongoing fees for a Five Star Bath franchise include a Royalty Rate of 6% of Gross Sales, payable weekly, and an Advertising Fund contribution of 2% of Gross Sales, also payable weekly, to support national marketing and brand development. A monthly Technology Fee of $250 further contributes to the maintenance and enhancement of the proprietary software systems vital to the operations of every Five Star Bath franchise. The initial franchise term is ten years, with options for renewal for additional ten-year periods, providing a long-term business horizon for dedicated entrepreneurs.

The operating model and support structure for a Five Star Bath franchise are meticulously designed to ensure operational efficiency, consistent service delivery, and continuous franchisee development. A cornerstone of this system is the comprehensive initial training program, a mandatory five-day intensive course held at the franchisor's headquarters in Salt Lake City, Utah, or another designated location. This program is required for the franchisee and up to two additional key employees, ensuring a foundational understanding of the business. The curriculum is extensive, covering critical aspects such as business management principles, effective marketing and sales techniques tailored to the bath renovation sector, best practices in customer service, in-depth product knowledge, and hands-on installation methodologies. Furthermore, franchisees receive thorough instruction on the use of the proprietary software and reporting systems, which are integral to managing customer relations, projects, and financial tracking for the Five Star Bath franchise. Before a new Five Star Bath franchise officially opens its doors, the franchisor provides significant pre-opening assistance, including guidance on site selection if a physical office or warehouse is desired, support in developing a robust grand opening marketing plan, and expert advice on placing the initial inventory order to ensure readiness for customer demand. Once operational, franchisees benefit from a multi-faceted ongoing support structure. Each Five Star Bath franchise is assigned a dedicated Franchise Business Coach who provides continuous consulting, conducts regular performance reviews, and offers personalized operational guidance to optimize business performance. Marketing support is extensive, granting franchisees access to a library of approved marketing materials, strategic guidance for local advertising initiatives, and the benefits of national advertising efforts funded by the collective Advertising Fund. Technological support is a continuous benefit, including access to the proprietary Customer Relationship Management (CRM) and project management software, along with ongoing technical assistance to ensure smooth system operation for every Five Star Bath franchise. The franchisor also leverages its established relationships with key suppliers for bath and shower products and materials, potentially offering franchisees bulk purchasing power and stable access to high-quality inventory. Moreover, an annual franchise conference provides invaluable opportunities for networking with fellow franchisees, participating in updated training sessions, and sharing best practices across the Five Star Bath franchise system, fostering a collaborative and growth-oriented community.

Five Star Bath franchise provides specific financial performance representations in its Franchise Disclosure Document, offering a transparent look into the system’s sales performance for the fiscal year ended December 31, 2022. For that period, all 122 franchised outlets generated a combined total gross sales figure of $100,566,311. This substantial collective revenue translates to an impressive average gross sales per franchised outlet of $824,314. The median gross sales per franchised outlet stood at $733,522, providing a complementary perspective that helps account for potential outliers in the data set. The sales performance exhibited a wide range among individual units, with the highest-performing Five Star Bath franchise outlet achieving gross sales of $2,427,337, while the lowest recorded gross sales were $14,976. To offer more granular insight, the franchisor categorizes the outlets into quartiles based on their gross sales performance. The top quartile, comprising 31 outlets, demonstrated an average gross sales of $1,461,288, indicating robust performance for a significant portion of the network. The second quartile, consisting of 30 outlets, reported an average gross sales of $834,166, showcasing continued strong revenue generation within the mid-range of the system. The third quartile, also with 30 outlets, had an average gross sales of $526,464, representing a solid base of operational units. Finally, the fourth quartile, with 31 outlets, recorded an average gross sales of $341,894. It is important to note that these figures represent gross sales and do not include deductions for cost of goods sold, operating expenses, or other costs that determine net profit. The franchisor explicitly states that it does not represent that any franchisee will achieve these exact sales figures, and individual financial results are likely to vary significantly due to numerous factors including location, market conditions, management effectiveness, and local competition. Furthermore, the FDD clarifies that no representations are made about a franchisee's future financial performance or the past financial performance of any company-owned outlets, as no company-owned outlets were in operation during the reported period. The detailed sales data provided, including averages, medians, and quartile breakdowns, offers prospective franchisees a valuable benchmark for understanding the potential revenue capabilities within the Five Star Bath franchise system, allowing for informed financial projections and business planning based on actual historical performance of the franchised units.

The Five Star Bath franchise has demonstrated a consistent growth trajectory, expanding its footprint across the United States and Canada since its inception. From December 31, 2020, with 104 franchised outlets, the system grew to 112 units by the end of 2021, and further expanded to 122 franchised outlets as of December 31, 2022. This steady increase in unit count reflects the brand's appeal and the effectiveness of its franchise model within the specialized home improvement sector. In 2022 alone, 24 new Five Star Bath franchise units were sold, following 30 new sales in 2021 and 22 in 2020, illustrating sustained interest from prospective entrepreneurs. While the system experienced some transfers, with 7 in 2022, 4 in 2021, and 2 in 2020, alongside terminations (15 in 2022, 14 in 2021, 4 in 2020) and cessations (2 in 2022), the net growth in overall unit count remains positive year over year, demonstrating the resilience and ongoing expansion of the Five Star Bath franchise network. A key competitive advantage for the Five Star Bath franchise lies in its exclusive territory model. Each franchisee is granted an exclusive territory, precisely defined by zip codes or other geographic boundaries, typically encompassing a population of 100,000 to 200,000 individuals. This exclusivity provides significant protection, as the franchisor commits to not establishing another Five Star Bath franchise or company-owned outlet, nor granting a franchise to another party within the franchisee's designated area. This territorial protection is contingent upon the franchisee meeting specified sales performance criteria outlined in their Franchise Agreement, ensuring that market coverage is effectively utilized. This model minimizes internal competition and allows each Five Star Bath franchise owner to focus their marketing and operational efforts within a clearly defined market, fostering stronger local brand recognition and customer loyalty. The specialized focus on bath and shower solutions also serves as a competitive differentiator, enabling the brand to deliver superior expertise and efficiency compared to general home remodeling companies. The robust support system, including a dedicated business coach, comprehensive marketing assets, and proprietary technology, further enhances the competitive posture of each