Five Star Bath Solutions Franchise Cost, Revenue & Review 2026
- Investment
- $162K – $334K
- Disclosed sales
- $1.9M
- gross sales, not profit
- SBA charge-off
- 27.3%
- on 65 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Five Star Bath Solutions franchise requires a total initial investment of $162K – $334K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $1.9M. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 27.3% charge-off rate across 65 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $162K – $334K
- 66th pct Home Services
- Avg gross sales
- $1.9M
- Per franchisee, not per outlet
- Royalty
- 6.0%
- 21st pct Home Services
- Units
- 348
- 83rd pct Home Services
- SBA charge-off
- 27.3%
- % 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 median · 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 $162K – $334K including a $60K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $1.9M/year (median $1.4M). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 27.3% across 65 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +39 franchised outlets in the latest year (76 opened, 0 closed); 15 signed but not yet open (Item 20).
- GROWTHSystem growing at 99.4% CAGR over 3 years with 348 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Five Star Bath, LLC
- Parent company
- Five Star Franchising, L.L.C.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- FS PEP Holdco, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Five Star Painting, Inc.
- Prior franchisor entity
- Incorporated in
- Utah
- HQ
- 761 W. 1200 N., Suite 300, Springville UT 84663
- Franchisor revenue
- $38.1M
- vs $47.5M prior year
Same owner · FDD Item 1, page 9
5 other brands on this site name FS PEP Holdco, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Bathroom renovation franchise offering residential and commercial bathroom remodeling products and services
- Headquarters
- UT
- Founded
- 2014
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 47% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $83K | $224K |
| Total initial investment | $162K | $334K |
Source: Five Star Bath Solutions 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $162K – $334K
- Middle of category vs category
- Liquid capital req'd
- $20K – $50K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- National Marketing Fee: up to 2.5% of monthly Gross Reven…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $3K |
What do units actually make?
Average unit sales run 232% above the home services norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Five Star Bath Solutions until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$283K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Five Star Bath Solutions unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $1.9M
- Per franchisee, per year — not per outlet
- Median gross sales
- $1.4M
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical 2025 calendar-year results for the 62 franchisees open the full year with at least 12 months reported (Average Annual Sales, Average Monthly Sales, Average Close Ratio, leads and appointments per month), stated PER FRANCHISEE - an average of 4 locations each - with a separate Company-Controlled column (7 locations); tenure sub-tables for 12-24 months (30 franchisees), 25-36 months (15) and 37+ months (17); the tables are page images in the filing, read by eye
- Sample size
- 62 franchisees
- vs category median 32
- Range (low → high)
- $0→$10.3MCited, not corroborated — printed on page 61 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 319 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
The average franchisee generates $1.9M/year in gross sales. Median is $1.4M — top performers pull the average up, so a typical unit earns less.
Fee burden
6.0% royalty.
Operator retention
System expanding at 99.4% CAGR over 3 years across 348 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 medians
How Five Star Bath Solutions Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 348
- Opened
- 76
- Last reporting year
- Closed
- 0
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.2%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +99.4%
- Net unit change over 3 years
- 3-yr CAGR
- +99.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 1
- Transferred
- 25
- Reacquired
- 6
- Franchisor bought back
- Signed, not yet open
- 15
- 0.04 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 65
- Loan volume
- $13.5M
- Median loan
- $230K
- 50th percentile
- Charge-off rate
- 27.3%
- on 65 loans · 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)
- 72.7%
- 5-yr charge-off
- 22.2%
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 3
- Typical loan rate
- 10.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 2361
- Jobs supported
- 345
- 2.5 per loan
- Lender concentration
- 40%
- top lender's share
Borrower mix: 95% went to startups / new businesses, 5% to established operators
Top lenders financing Five Star Bath Solutions franchisees
Showing 3 of 13 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Five Star Bath Solutions from SBA 7(a) FOIA data.
- Principal loss rate
- 2.7%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 10.03%
- Avg chargeoff amount
- $123K
- Lender concentration
- 40.0%
- Job velocity
- 2.5 per $100K
- Jobs supported
- 345
Top SBA lendersTop lender holds 40% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 26 | N/A | N/A | |
| 2 | 18 | N/A | N/A | |
| 3 | 7 | N/A | N/A | |
| 4 | 4 | N/A | N/A | |
| 5 | 2 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 10 | 0 | 0.0% |
| FLFlorida | 6 | 0 | -- |
| VAVirginia | 5 | 1 | 50.0% |
| GAGeorgia | 4 | 0 | 0.0% |
| NYNew York | 4 | 0 | -- |
| OHOhio | 4 | 0 | -- |
| PAPennsylvania | 4 | 1 | 50.0% |
| TXTexas | 4 | 0 | 0.0% |
| MDMaryland | 3 | 1 | 100.0% |
| AZArizona | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 27.3% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 27.3% — 70% above the 16.0% national norm, i.e. higher 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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Illinois AG investigation/Consent Judgment (2010) over unregistered franchise sale, $7,500 penalty; California voluntary Notice of Violation (2015) for non-disclosure of a bankruptcy matter in Item 4, mailed to one affected franchisee
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
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: No
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 150,000 |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 100 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Utah |
| Governing law | Utah |
| Litigation count | 2 |
View Item 3 litigation summary
Illinois AG investigation/Consent Judgment (2010) over unregistered franchise sale, $7,500 penalty; California voluntary Notice of Violation (2015) for non-disclosure of a bankruptcy matter in Item 4, mailed to one affected franchisee
Items 10, 11
Training & Operations
- Classroom training
- 59 hrs
- On-the-job training
- 3 hrs
- Training location
- Warren, Michigan (in-person); virtual pre-training
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- ServiceMinder
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ServiceMinder
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Five Star Bath Solutions franchise?
The total investment to open a Five Star Bath Solutions franchise ranges from $162K – $334K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Five Star Bath Solutions franchise owners earn?
According to Item 19 of the Five Star Bath Solutions FDD, the average gross sales per unit is $1.9M. The median is $1.4M. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Five Star Bath Solutions?
Five Star Bath Solutions is franchised by Five Star Bath, LLC. Its parent company is Five Star Franchising, L.L.C.. The ultimate parent named in the FDD is FS PEP Holdco, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Five Star Bath Solutions 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 Five Star Bath Solutions FDD and qualifies whose outlets they describe.
What is Five Star Bath Solutions's franchise failure rate?
Based on SBA 7(a) loan data, Five Star Bath Solutions has a charge-off rate of 27.3% across 65 loans, meaning 27.3% 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 Five Star Bath Solutions franchise locations are there?
As of their most recent FDD filing, Five Star Bath Solutions has 348 total units in the United States, including 345 franchised units and 3 company-owned units. 76 new units were opened in the latest reporting year.
Is Five Star Bath Solutions a good franchise to buy?
FranchiseVerdict rates Five Star Bath Solutions as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.