Five Star Bath Solutions

## Executive Summary

Five Star Bath Solutions has emerged as a compelling opportunity in the home services sector, specializing in bathroom remodeling with a focus on accessibility solutions and tub-to-shower conversions. Ranked #233 on Entrepreneur 2025 Franchise 500 (up from #314 in 2024), the brand demonstrates strong momentum in the growing home improvement market.

With a total investment ranging from $126,000 to $373,000 and impressive reported financial performance - including average yearly gross sales of $1,250,564 and estimated owner earnings of $175,079 to $225,102 - Five Star Bath Solutions offers an attractive entry point into the bathroom remodeling niche. The estimated payback period of 1.6 to 3.6 years positions this franchise favorably compared to many alternatives.

## The Numbers

**Initial Investment:** - Total Investment: $126,000 - $373,000 - Initial Franchise Fee: $59,500 (for up to 150,000 households) - Additional Territory Fee: $0.40 per household - Liquid Capital Required: $100,000 - Net Worth Required: $250,000

**Ongoing Fees:** - Royalty Fee: 6% of Gross Revenue (5% for $1M+ annual revenue) - Monthly Minimum Royalty: $1,000 starting month 7, increasing to $2,500 by month 36 - National Marketing Fee: Up to 2.5% of Gross Revenue ($200 monthly minimum starting month 7)

**Financial Performance (Reported):** - Average Yearly Gross Sales: $1,250,564 - Estimated Owner Earnings: $175,079 - $225,102 - Estimated Payback Period: 1.6 - 3.6 years

**Veteran Benefits:** - 10% discount on initial franchise fee

**Franchise Terms:** - Initial Term: 10 years - Renewal Term: 10 years

## The Business Model

Five Star Bath Solutions operates in the bathroom remodeling segment of the home services industry, with particular expertise in accessibility modifications, tub-to-shower conversions, walk-in tubs, and complete bathroom renovations. The business model combines showroom-based sales with installation services.

Franchisees typically operate from a combination of a small office or showroom space and a warehouse for inventory. The sales process involves in-home consultations where design specialists present options using digital visualization tools and close sales on-site. Installation work is performed by trained crews, which may be employees or subcontractors depending on the franchisee approach.

The aging population creates significant tailwinds for the accessibility modification segment, as seniors increasingly seek to modify their homes for safe aging in place rather than moving to assisted living facilities.

## System Health

Five Star Bath Solutions upward trajectory in franchise rankings (jumping 81 positions in one year) indicates strong system momentum. The brand focus on aging-in-place solutions positions it well for long-term demographic trends as the baby boomer generation continues to age.

The royalty structure includes a notable feature: the rate decreases from 6% to 5% once franchisees exceed $1 million in annual gross revenue, creating an incentive alignment that rewards growth. The monthly minimum royalties ensure the franchisor receives baseline support fees during ramp-up periods.

The national marketing fee of up to 2.5% provides resources for brand-building and lead generation support, which is critical in the home services sector where consumer trust and brand recognition drive sales.

## Franchisee Experience

Five Star Bath Solutions franchisees manage multifaceted operations that span sales, project management, and installation coordination. The business requires building and managing a team that includes sales consultants, installers (or subcontractor relationships), and administrative support.

Day-to-day operations involve lead management and appointment scheduling, in-home design consultations, project estimation and pricing, installation scheduling and quality control, customer communication and satisfaction management, and marketing and community outreach.

The business has meaningful seasonality in many markets, with stronger demand in spring and fall when homeowners undertake renovation projects. Successful franchisees develop systems to manage workload fluctuations and maintain installer capacity.

## Key Considerations

**Strengths:** - Strong demographic tailwinds (aging population) - Attractive reported unit economics ($1.25M avg. sales) - Reasonable payback period (1.6-3.6 years) - Declining royalty rate rewards growth - Rising Franchise 500 ranking indicates momentum - Established training and support systems - Multiple product lines (accessibility, cosmetic, full remodels)

**Challenges:** - Finding and retaining quality installation crews - Managing subcontractor relationships and quality - Significant lead generation requirements - Competition from local contractors and national brands - Seasonality in many markets - Customer acquisition costs can be substantial - Warranty and callback management

**Ideal Candidate Profile:** - Sales and marketing experience - Construction or home services background (helpful but not required) - Strong leadership and team-building skills - Customer service orientation - Business management capabilities - Capital to sustain operations during ramp-up - Comfort with in-home sales model

## Validation Questions

When evaluating Five Star Bath Solutions, consider asking existing franchisees:

1. What are your actual gross revenues and owner earnings compared to the FDD reported averages? 2. How long did it take to reach profitability, and what was your monthly cash burn during ramp-up? 3. What is your cost per lead, and what lead sources (digital, direct mail, home shows) perform best? 4. Do you use employees or subcontractors for installation, and what are the pros and cons of your approach? 5. What is your close rate on in-home consultations, and what drives successful sales? 6. How do you manage seasonality, and what does your revenue look like month-to-month? 7. What marketing support does corporate provide, and how effective are the national campaigns? 8. What are the biggest operational challenges you face on a daily basis? 9. How responsive is the franchisor to support requests and system improvements? 10. Would you make this investment again, and what would you do differently?