Five Star Bath Solutions
The total investment to open a Five Star Bath Solutions franchise ranges from $48,600 to $389,350. The initial franchise fee is $30,000. Ongoing royalties are 5% plus a 1% advertising fee.
What is the Five Star Bath Solutions franchise?
Investing in a franchise can be one of an entrepreneur’s largest financial commitments. The opportunity may produce major business results, but a weak due diligence process can also lead to capital loss. Bathroom remodeling serves a recurring need for homeowners across North America. Bathrooms are among the most frequently used spaces in a home, yet they are often neglected. Outdated fixtures, inefficient layouts, water damage, and changing design preferences can lead homeowners to renovate. Traditional remodeling can involve long timelines, several tradespeople, surprise expenses, and substantial disruption. Five Star Bath Solutions was created to address those difficulties. Founded in 1996 and headquartered in Huntington Beach, California, the company set out to make bathroom remodeling more efficient and manageable for homeowners seeking updated bathrooms. The company began franchising in 2002. Its network now includes 52 total units, including 50 franchised units. Within the Painting and Wall Covering Contractors category, the brand focuses on comprehensive bath solutions rather than general contracting. That focus can support a more specialized process and may reduce some of the delays associated with coordinating several types of contractors. Home renovation, including bathroom remodeling, is a multi billion dollar market supported by aging homes and homeowners’ continuing interest in upgrades. For a buyer, the franchise offers a branded and systematized service in a market that remains highly fragmented among independent contractors. PeerSense provides an independent research perspective for evaluating the opportunity rather than reproducing the brand’s marketing materials. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders, and it is not a lender.
The United States home renovation market exceeds $400 billion annually. Bathroom remodeling generally represents an estimated $30 billion to $50 billion of that activity each year. Analysts project compound annual growth of 3 to 5 percent over the next five years. Several consumer trends support demand for the services offered by Five Star Bath Solutions. Aging housing stock across North America means that millions of homes require updates. Bathrooms are frequent renovation targets because of wear, changing design preferences, and outdated functionality. More homeowners are also choosing to age in place, which increases the need for bathroom accessibility changes and safety improvements. Remote work has kept many people in their homes for more of the day, making them more aware of their living spaces and more interested in improving them. Home improvement television programs and other design and lifestyle media continue to influence demand for modern bathroom environments. Specialized home services can also appeal to franchise buyers because maintenance and upgrades are often prioritized during economic downturns. A focused bath remodeling operation may achieve higher margins than a general contractor, although actual results depend on the unit. The sector remains fragmented, with many small independent contractors. That structure gives a branded operator an opportunity to compete through consistent service, reliability, and a defined customer experience. Historically low interest rates have made home improvement financing more accessible, while a strong housing market has encouraged owners to invest in existing properties. Those conditions have supported the growth setting for the Five Star Bath Solutions franchise.
The Five Star Bath Solutions franchise fee is $30,000. Established franchise systems in home services and specialized construction commonly charge initial franchise fees from $25,000 to $50,000, placing this fee within that range. The payment provides rights to use the Five Star Bath Solutions name, proprietary systems, and initial training. The total initial investment ranges from $48,600 to $389,350. The wide range reflects different operating formats and market conditions. The lower end can correspond to a mobile, home based model that needs a vehicle, tools, and initial inventory, with limited real estate and build out expense. The upper end can reflect a dedicated showroom or larger warehouse, more inventory, additional vehicles, and a larger marketing launch in a prime geographic market. Real estate prices, labor rates, and local permit requirements can also change the required investment. Candidates must have $50,000 in liquid capital and a net worth of $100,000. Liquid capital can help cover early operating expenses, working capital, and unexpected costs during the ramp up period. Net worth indicates broader financial capacity to absorb the investment. The ongoing royalty is 5% of gross sales. Home services franchise royalties commonly range from 4% to 8%. The royalty supports continuing franchisor services, research and development, and system improvements. Specific advertising fee information is not available. Franchise systems often require contributions to a national or regional advertising fund, and other possible expenses can include customer relationship management technology, project management software, or specific marketing programs. Overall, the opportunity ranges from an accessible to a mid tier investment within home services. The lower investment level and liquid capital requirement may appeal to an entrepreneur seeking a manageable entry into the sector. Hudson Integrated is the parent company and provides corporate backing and strategic direction for Five Star Bath Solutions. Many established home services franchise systems may qualify for Small Business Administration financing for qualified candidates, although PeerSense does not lend, fund, or approve loans. Specific veteran incentives for Five Star Bath Solutions are not publicly detailed. Many franchise systems offer military veterans a discount on the initial franchise fee, so candidates who have served should ask the franchisor about current policies.
Five Star Bath Solutions is structured around bathroom transformations that aim to improve function and appearance while limiting disruption to the homeowner. Daily work generally includes lead generation, customer consultation, design, project management, and professional installation. Local marketing and sales activity generates leads, followed by in home consultations covering design choices, materials, and detailed quotes. The franchisee or sales team then manages installation work so that projects meet expected schedules, budgets, and Five Star quality standards. Staffing needs depend on the size of the operation. A new franchisee may begin as an owner operator and handle sales, project management, and possibly early installations. As volume grows, staffing can expand to sales associates, project managers, and several specialized installation crews. Recruiting and retaining capable technicians is central to delivering consistent quality and efficiency. Drive through and kiosk formats do not apply to this home services business. The investment range does, however, allow for different physical setups. A franchisee may start from a mobile, home based operation and later add an office, showroom, or warehouse for inventory, administrative employees, and customer consultations. Training is designed to cover the knowledge needed to operate the business. The specific length and location are not available. Typical instruction may combine classroom work at the corporate headquarters on management, sales, marketing, and proprietary software with hands on training at a corporate or certified location. Practical training can cover installation methods, project management, and customer service procedures. Ongoing support generally includes field consultants who advise on operating practices, performance analysis, and growth planning. Franchisees may receive access to customer relationship management systems for lead handling and project management software for scheduling and tracking. Centralized marketing can provide designed materials, digital strategies, and brand campaigns for local lead generation. The franchisor also uses its scale to build supply relationships for high quality materials and products, which may give franchisees better pricing. Five Star Bath Solutions typically grants exclusive territories, giving each franchisee a defined service area without direct internal competition. That structure allows marketing and sales efforts to concentrate within the protected territory. Multi unit development is often encouraged for high performing franchisees and can provide a route to additional territories. The model generally begins with active owner involvement and may become semi absentee after managers are hired and the operation reaches adequate scale and maturity.
Buyers must use industry benchmarks, market analysis, and indicators of brand health when building projections. Public information about home renovation and specialized bath remodeling provides some context. That observation applies to the broader industry and is not a forecast for Five Star Bath Solutions. These are industry averages and do not guarantee results for an individual franchise. Five Star Bath Solutions’ specialization and systematized process may help reduce complexity and improve efficiency, which could support margins within those industry ranges. A dedicated bath solutions provider may also benefit from focused processes, specialized vendor relationships, and a more specific marketing message compared with a general contractor. The brand’s development also provides a useful operating signal. Since beginning franchising in 2002, it has developed 50 franchised units over two decades. That reflects measured expansion and suggests that the model has attracted and retained franchisees over an extended period. It does not replace unit level financial disclosure. The brand has a Loan Activity Score of 84, rated Excellent. The Franchise Performance Index is a proprietary PeerSense measure covering franchisee satisfaction, operational support, brand strength, and perceived investment value. An Excellent score of 84 indicates that existing franchisees are generally satisfied with the franchisor’s support, systems, and overall value. A buyer can instead model multiple revenue and expense cases using industry averages, the initial investment range, and the Loan Activity Score as a qualitative measure of system strength.
Five Star Bath Solutions has pursued steady expansion rather than rapid annual unit growth. Since entering franchising in 2002, the brand has reached 50 franchised units, representing an average net increase of approximately 2 to 3 units per year over two decades. This pace may reflect deliberate franchisee selection and an effort to establish support systems before adding units more quickly. It can appeal to buyers who prefer a longer operating history over a new concept without an established record. Public information does not detail recent acquisitions or major rebranding. Like other home services brands, Five Star Bath Solutions may continue to invest in tools that improve customer experience, operating processes, and lead generation. Common examples include three dimensional rendering software for design consultations, online scheduling, and customer relationship management systems. The brand’s competitive position rests on its bath remodeling specialization and operating systems. Its exclusive focus on bathroom solutions can support specialized training, deeper expertise, and supplier relationships that general contractors may find difficult to duplicate. The specialization may also contribute to faster project completion, consistent quality, and a more predictable customer experience. The Five Star name communicates a premium quality and service promise to homeowners, which can help build trust in a sector where service quality varies among providers. Systems developed since 1996 are intended to create consistency from the first consultation through final installation. Established supplier relationships may give franchisees access to competitive material prices while helping maintain product consistency. The brand is likely responding to current market conditions through digital tools, including an online presence, targeted digital marketing, and online quoting and scheduling. As customer expectations change, the process may place greater emphasis on communication from the first inquiry through project completion. Sustainability options, such as environmentally friendly materials and water saving fixtures, are not specifically stated but could become relevant to consumers and to the brand’s offerings. Specialized expertise, brand identity, and continuing process improvements are the main factors that support the franchise’s position in a fragmented home improvement market.
The likely Five Star Bath Solutions franchisee has entrepreneurial drive, strong communication ability, and a customer focused approach. Direct construction or bath remodeling experience is not required. Experience in sales, marketing, or project management can be helpful. The training program is intended to provide technical and operating knowledge, allowing candidates with sound business judgment to develop in the model. Important abilities include managing employees, tracking project schedules, and building relationships with customers and staff. The business is primarily an owner operator model at the beginning, so the franchisee is expected to participate in daily operations and growth. Multi unit development is often encouraged for high performing franchisees who understand the system and want to expand. Potential territories are likely to include markets with favorable demographic conditions and substantial housing stock. Examples include established suburbs with older homes, growing metropolitan areas with many homeowners, and regions where economic conditions support discretionary home improvement spending. Stronger markets generally have higher median household income, a large share of owner occupied homes, and active real estate activity that supports purchases and renovations. The period from signing the franchise agreement to opening a unit can range from 3 to 6 months. That period can include territory selection, site identification when a physical location is desired, lease negotiations, initial training, vehicle preparation, licenses, permits, and pre opening marketing. The agreement term is not specifically available. Home services franchise agreements commonly run for 10 years with renewal options. Renewal provisions affect the ability to continue operating under the Five Star Bath Solutions name. Transfer and resale terms also matter because they determine how a franchisee may eventually sell the established business as an asset.
A buyer evaluating Five Star Bath Solutions should conduct detailed due diligence before making a commitment. The concept serves a recurring bathroom remodeling need within the multi billion dollar home renovation sector. The company was founded in 1996 and began franchising in 2002, giving the brand a longer operating history than a new concept. Its network includes 50 franchised units, and the total network has 52 units. The Loan Activity Score of 84, rated Excellent, is a qualitative indicator of franchisee satisfaction and system health. It suggests that current franchisees generally value the franchisor’s support and operating framework. The focused bath remodeling model and its processes may help the brand compete in a fragmented market where independent contractors often provide inconsistent experiences. Aging housing, continued homeowner interest in upgrades, and demand for convenient professional service support the broader category. Five Star Bath Solutions is positioned as a specialized branded provider rather than a general contractor. PeerSense research can add context for a buyer reviewing the opportunity, including information about the brand’s SBA lending history and how financial institutions have evaluated its viability and track record. PeerSense does not provide loans, approve financing, or act as a lender. Buyers can also review the Loan Activity Score and tier rating, proprietary competitive data, an interactive location map, and Google ratings for existing units. A comparison tool can help buyers review Five Star Bath Solutions alongside other home services franchises. The complete Five Star Bath Solutions franchise profile on PeerSense is intended to support broader franchise due diligence and financing preparation.
Loan Activity Score
84/100
SBA Default Rate
4.3%
Active Lenders
15
According to its Franchise Disclosure Document or public business records, Five Star Bath Solutions has 50 locations, all owned by franchisees. Public SBA loan records show 15 lenders made 70 loans to franchisees of Five Star Bath Solutions. PeerSense calculates Five Star Bath Solutions's score as 84 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2025 Franchise Disclosure Document.
Franchising since 1996 · 50 locations
$48,600 to $389,350
$30,000
50
50 franchised
Proprietary PeerSense metric
ExcellentDistinct lenders in public SBA records for Five Star Bath Solutions
70
Total SBA loans
$211K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Five Star Bath Solutions
Loan Activity Score Breakdown
Established (25 to 99 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
4.3%
vs 9.9% peer avg
SBA Loans
70
Total Volume
$14.8M
Active Lenders
15
4 selective
States
24
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Five Star Bath Solutions based on SBA lending data
SBA Default Rate
4.3%
5.6% below peer avg
SBA Loan Volume
70 loans
Across 15 lenders
Lender Diversity
15 lenders
Avg 4.7 loans per lender
Investment Tier
Mid range investment
$48,600 to $389,350 total
Five Star Bath Solutions: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2025
26 approvals. The best year on record for Five Star Bath Solutions.
Top SBA State
California
10 SBA financed Five Star Bath Solutions locations, the densest operator footprint.
Average Loan Size
$211K
Median $225K. Use as a sizing anchor when modeling your own Five Star Bath Solutions unit.
Lender Concentration
77.1%
Concentrated
Share of Five Star Bath Solutions approvals captured by the top 3 SBA lenders.
Five Star Bath Solutions's SBA lending pipeline peaked in 2025 (26 approvals). The last five fiscal years account for 93% of cumulative volume ($14M approved). Operator density is highest in California with 10 SBA financed locations. Average funded ticket sits at $211K, with the median at $225K. Lender mix is concentrated: the top three SBA lenders account for 77.1% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$503
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Five Star Bath Solutions, unit breakdown
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman