FranchiseVerdict
BATH TUNE-UP logo
FV-00253·STRONGExcellent95

Bath Tune-Up

Food & Beverage - Quick ServiceFranchising since 2021Website
Investment
$110K – $174K
14th pct Quick Service
Avg revenue
$304K
2nd pct Quick Service
Royalty
Units
48
56th pct Quick Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $110K – $174K including a $65K franchise fee.
  • Average unit revenue of $304K/year (median $275K).
  • Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
  • System growing at 17.1% CAGR over 3 years with 48 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
HFC KTU LLC
Parent company
Home Franchise Concepts, LLC
Incorporated in
Delaware
HQ
14 S. Main Street, Suite 1C, Aberdeen, South Dakota 57401
Auditor
PricewaterhouseCoopers LLP
Audited financials
Franchisor revenue
$14.4M
vs $13.9M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one BATH TUNE-UP unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $303,701
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $110K–$174K
Working capital
$
FDD reports $15K–$25K

Unlevered ROIC · per unit

28%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$46K
EBITDA margin
15.0%
Total invested
$162K
Payback
43 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 BATH TUNE-UP units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$486K

on $2.4M purchase

Total debt

$1.9M

SBA $1.2M + senior + seller note

Overview

About

Bath Tune-Up franchisees operate mobile bathtub and tile refinishing services, visiting customer homes to resurface and repair bathroom fixtures. Day-to-day operations involve scheduling appointments, managing service delivery teams, handling customer payments, and maintaining equipment for on-site bathtub reglazing and repair work.

CEO
Heidi Morrissey
Founded
2020
FDD year
2025
States available
16

Item 7 · what it costs

The Vitals

Total investment
$110K – $174K
All-in to open one unit
Liquid capital
$15K – $25K
Cash you must have on hand
Franchise fee
$65K
Royalty
Greater of (a) 7.0% – 4.0% of Gross Revenue or (b) $750-$…
Ad fund
1.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$304K
Per unit, per year
Median gross sales
$275K
Item 19 type
Gross Sales
Sample size
19 units
vs category median 37
Range (low → high)
$105K$1.8M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank2th
vs Food & Beverage - Quick Service peers
Investment cost rank14th
Lower investment ranks lower (better)
Royalty rate rank84th
Lower royalty = lower percentile (better)
Unit count rank56th
vs Food & Beverage - Quick Service peers
Risk score rank25th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
48
Opened
9
Last reporting year
Closed
9
Turnover rate
18.8%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+17.1%
Compounded over last 3 years
2023
48±0
Franchised units
2024
48
Franchised units
2025
41
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 15 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 15 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
22
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

52
Risk · 0-100
STRONG52 / 100

Undisclosed profitability metrics, stagnant unit growth, litigation history, and high fixed royalty burden create significant due diligence gaps and financial risk.

Score breakdown · what drove the 52 / 100 rating

  1. 01MINORNo Item 19 (Average Net Income) disclosure — impossible to validate $109,930-$173,850 investment ROI claims
  2. 02MINORStagnant unit count at 48 with unknown growth trajectory suggests market saturation or retention issues
  3. 03HIGHMultiple litigation disclosures including franchisor breach of contract actions against franchisees, indicating collection or compliance disputes
  4. 04MINOR2006 regulatory consent order with affiliate (Aussie Pet Mobile) on franchise law compliance raises governance concerns
  5. 05HIGHBankruptcy adversary proceeding by franchisee guarantor indicates financial distress among franchisees
  6. 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

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
ZIP Codes
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
4
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
South Dakota

Item 11

Training & Operations

Classroom training
121 hrs
On-the-job training
66 hrs
POS system
BATH TUNE-UP Customer Relations Management System (“CRM System”)
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

51 numbers

Locked
(614) 931-••••
OH
(804) 371-••••
UT
(804) 371-••••
UT

One-time purchase · CSV download · Validation questions included

FDD download

BATH TUNE-UP · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above