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Five Star Bath Solutions Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Investment Required for a Five Star Bath Solutions Franchise?
To start your journey with a Five Star Bath Solutions franchise, you should be prepared for an initial investment ranging from $125,500 to $373,000. This includes a franchise fee of $59,500. Additionally, potential franchisees need to demonstrate a net worth of $100,000 to $250,000 and have liquid cash available between $125,500 and $266,000. Understanding these financial commitments is crucial for aspiring entrepreneurs looking to enter the home improvement industry.
What Are the Financial Performance Metrics for Five Star Bath Solutions?
Five Star Bath Solutions franchises have shown promising financial performance, with an average annual revenue of approximately $1,696,370 per unit. The gross profit margin stands at 33.8%, indicating a healthy return on investment. Franchisees can expect to break even within 18 months and may achieve payback on their initial investment in about 15 months. These metrics highlight the potential profitability of joining this franchise network.
What Ongoing Fees Should Franchisees Expect?
Franchisees of Five Star Bath Solutions should anticipate ongoing fees that include a royalty fee of 6% on gross sales and a marketing fee of 2.5%. These fees are essential for maintaining brand presence and supporting marketing initiatives. Understanding these ongoing costs is vital for effective financial planning and ensuring long-term sustainability within the franchise system.
How Has Five Star Bath Solutions Expanded Over the Years?
Five Star Bath Solutions has experienced steady growth in its franchise network, increasing from 54 franchised units in 2021 to 91 in 2023. This growth trajectory reflects the brand's expanding market presence and the increasing demand for home improvement services. With a consistent number of corporate units remaining at three, the franchise is focused on supporting its franchisees while continuing to enhance its operational framework.
Five Star Bath Solutions Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Five Star Bath Solutions Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 57 | 74 | 94 |
| Net Change YoY | 17 | 20 | |
| Franchised Units | 54 | 71 | 91 |
| Net Change YoY | 17 | 20 | |
| Corporate Units | 3 | 3 | 3 |
| Net Change YoY | 0 | 0 |
Company Background
Five Star Bath Solutions is a leading franchise in the home improvement sector, specializing in bathroom remodeling services. Established to provide innovative solutions for homeowners seeking to upgrade their bathrooms, the brand has quickly gained a reputation for quality craftsmanship and customer satisfaction. With a focus on affordability and efficiency, Five Star Bath Solutions has become a trusted name for transforming bathrooms into luxurious spaces.
Franchise Opportunity
Investing in a Five Star Bath Solutions franchise offers aspiring entrepreneurs a chance to enter a booming market. With an initial investment ranging from $125,500 to $373,000, franchisees benefit from a well-established brand and a proven business model. The franchise provides extensive training and support, ensuring that both new and experienced investors can thrive in the competitive home improvement industry.
Financial Performance
Five Star Bath Solutions franchises demonstrate strong financial potential, with average annual revenues per unit reaching approximately $1,198,193. The franchise's financial structure includes a 6% royalty fee and a 2.5% marketing fee, allowing franchisees to invest in growth while benefiting from comprehensive marketing support. With a breakeven time of just 18 months and a payback period of 15 months, franchisees can expect a solid return on their investment.
Investment Requirements
To become a franchisee, individuals must meet certain financial criteria. A net worth of $100,000 to $250,000 is required, along with liquid capital ranging from $125,500 to $266,000. This investment ensures that franchisees are financially prepared to manage their operations effectively while benefiting from the franchise's established systems and support.
Growth and Expansion
Since its inception, Five Star Bath Solutions has shown impressive growth, increasing from 54 franchised units in 2021 to 91 in 2023. This expansion reflects the brand's popularity and the increasing demand for bathroom remodeling services. With a strong support network and ongoing training, franchisees are well-equipped to capitalize on this growth trend in the home improvement market.
Customer Commitment
Five Star Bath Solutions is dedicated to providing exceptional customer service and high-quality products. The franchise focuses on understanding the unique needs of each homeowner, offering personalized solutions that enhance the bathroom experience. By prioritizing customer satisfaction, Five Star Bath Solutions builds lasting relationships, ensuring repeat business and positive referrals that drive franchise success.
Frequently Asked Questions
The initial investment for a Five Star Bath Solutions franchise ranges from $125,500 to $373,000, which includes the franchise fee of $59,500.