Bath Tune-Up Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Bath Tune-Up is a bathroom remodeling franchise offering updates, refreshes, and full renovations. Franchisees run local operations, handling in-home design consultations, sales, and installation crews within a territory.
FranchiseVerdict summary · 2026
A BATH TUNE-UP franchise requires a total initial investment of $110K – $174K, including a $20K franchise fee. Per the 2025 FDD, average unit revenue was $304K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $110K – $174K
- 40th pct Home Services
- Avg gross sales
- $304K
- Outlet subset5th pct Home Services
- Royalty
- N/A
- Units
- 48
- 46th pct Home Services
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $110K – $174K including a $20K franchise fee.
- RETURNSAverage unit revenue of $304K/year (median $275K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better). SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG6 units terminated last reporting year (12.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HFC KTU LLC
- Parent company
- Home Franchise Concepts, LLC
- Ultimate parent
- JM Family Enterprises, Inc.
- Predecessor
- DCHFamily, Inc. f/k/a KTU Worldwide, Inc.
- Prior franchisor entity
- CEO title
- President
- Heidi Morrissey
- CEO experience
- 4 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 14 S. Main Street, Suite 1C, Aberdeen, South Dakota 57401
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $13.9M
- vs $14.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Two Maids Franchising
- AdvantaClean Systems
- Loss Control and Recovery
- AdvantaClean Equipment Rental
- Lightspeed Restoration
- Budget Blinds
- Aussie Pet Mobile
- American Decorative Coatings
- Order Processing Services
- Organized Spaces
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Heidi Morrissey
- Headquarters
- SD
- Founded
- 2020
- FDD year
- 2025
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost runs 37% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $20K | |
| Initial Territory Feenot refundable | $45K | $45K | |
| Travel and Living Expenses While Training | $2K | $3K | |
| Office/Work Space | $500 | $3K | |
| Vehicle | $7K | $40K | |
| Credit Card Processing Technology | $30 | $500 | |
| Miscellaneous Tools and Office Supplies | $1K | $3K | |
| Miscellaneous Opening Costs | $2K | $4K | |
| Lead Safe Certification | $300 | $500 | |
| Contractor's License and Bond | $150 | $2K | |
| Auto Insurance | $1K | $3K | |
| Commercial General Liability Insurance | $500 | $2K | |
| Professional Fees | $750 | $4K | |
| Initial Marketing - 3 months | $15K | $20K | |
| Additional Funds - before opening and first three months | $15K | $25K | |
| Total initial investment | $110K | $174K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $110K – $174K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $25K
- Top 40% of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- Greater of tiered % of gross revenue (7% on first $30K, 6…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 7.0%-4.0% of Gross Revenue or $750 per month for first year and $1,500 per month thereafter |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $450 |
| Training fee | $150 |
| Transfer fee | $25K |
| Renewal fee | $5K |
| Inventory (initial) | $2K – $4K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 75% below the home services norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$36K
12.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.4 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one BATH TUNE-UP unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
23%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 BATH TUNE-UP units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$304K
on $1.5M purchase
Total debt
$1.2M
SBA $0.8M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $304K
- Per unit, per year
- Median gross sales
- $275K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 9
- vs category median 32 · small
- Range (low → high)
- $105K→$526K
- Cohort dispersion (min → max)
- Quartile band
- $207K→$474K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $304K/year in gross sales. Revenue-to-investment ratio: 2.1x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Home Services average).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 17.1% CAGR over 3 years across 48 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How Bath Tune-Up Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 9
- Last reporting year
- Closed
- 3
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 27.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +17.1%
- Net unit change over 3 years
- 3-yr CAGR
- +17.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 17
- Closed (3yr)
- 12
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 20
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $2.0M
- Median loan
- $180K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
Vintage analysis
Bath Tune-Up charge-off rate by loan vintage
Top lenders financing Bath Tune-Up franchisees
Showing 3 of 5 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Bath Tune-Up's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Undisclosed profitability metrics, stagnant unit growth, litigation history, and high fixed royalty burden create significant due diligence gaps and financial risk.
Litigation (Item 3)
4 actions disclosed: (1) bankruptcy adversary proceeding vs former franchisee Brian Hill (settled 2024); (2) HFC KTU LLC v. Orange Diamond Remodeling Solutions - breach of contract/non-payment (dismissed 2024-2025); (3) HFC KTU LLC v. Fillmore Enterprises - amounts due under franchise agreement (filed Aug 2024); (4) Aussie Pet Mobile administrative proceeding before Maryland Securities Commissioner (Consent Order 2006, affiliate matter)
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 70 / 100 verdict
- 01MINORNo Item 19 (Average Net Income) disclosure — impossible to validate $109,930-$173,850 investment ROI claims
- 02MINORStagnant unit count at 48 with unknown growth trajectory suggests market saturation or retention issues
- 03HIGHMultiple litigation disclosures including franchisor breach of contract actions against franchisees, indicating collection or compliance disputes
- 04MINOR2006 regulatory consent order with affiliate (Aussie Pet Mobile) on franchise law compliance raises governance concerns
- 05HIGHBankruptcy adversary proceeding by franchisee guarantor indicates financial distress among franchisees
- 06MINORHigh royalty floor ($750-$1,500/month = $9,000-$18,000 annually) creates breakeven pressure on $303,701 average revenue
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 41,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Brown County, South Dakota |
| Jury trial waiver | No |
| Governing law | SD |
| Litigation count | 4 |
View Item 3 litigation summary
4 actions disclosed: (1) bankruptcy adversary proceeding vs former franchisee Brian Hill (settled 2024); (2) HFC KTU LLC v. Orange Diamond Remodeling Solutions - breach of contract/non-payment (dismissed 2024-2025); (3) HFC KTU LLC v. Fillmore Enterprises - amounts due under franchise agreement (filed Aug 2024); (4) Aussie Pet Mobile administrative proceeding before Maryland Securities Commissioner (Consent Order 2006, affiliate matter)
Items 10, 11
Training & Operations
- Classroom training
- 121 hrs
- On-the-job training
- 66 hrs
- Training location
- Coppell, TX and virtual/franchisee location
- Ongoing training
- Required
- Time to open
- 0 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- BATH TUNE-UP Customer Relations Management System (“CRM System”)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: BATH TUNE-UP Customer Relations Management System (“CRM System”)
Item 20 · call current owners
Franchisee Contacts
36 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BATH TUNE-UP · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BATH TUNE-UP franchise?
The total investment to open a BATH TUNE-UP franchise ranges from $110K – $174K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BATH TUNE-UP franchise owners earn?
According to Item 19 of the BATH TUNE-UP FDD, the average gross sales per unit is $304K. The median is $275K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the BATH TUNE-UP FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BATH TUNE-UP FDD and qualifies whose outlets they describe.
What is BATH TUNE-UP's franchise failure rate?
Based on SBA 7(a) loan data, BATH TUNE-UP has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many BATH TUNE-UP franchise locations are there?
As of their most recent FDD filing, BATH TUNE-UP has 48 total units in the United States, including 48 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is BATH TUNE-UP a good franchise to buy?
FranchiseVerdict rates BATH TUNE-UP as a A-grade franchise with a verdict score of 70 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.