Bottom line
- Total investment $276K – $607K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $3.9M/year (median $2.5M). Estimated payback in 1.2 years.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 33 loans (below the industry average).
- System growing at 16.9% CAGR over 3 years with 145 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 Re-Bath unit return on the cash you put in?
Unlevered ROIC · per unit
97%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Re-Bath units return on equity?
Equity IRR · 5-yr
25.6%
3.12× MOIC
Year-1 DSCR
3.27×
EBITDA ÷ debt service
Equity required
$16.9M
on $31.2M purchase
Total debt
$14.4M
SBA $5.0M + senior + seller note
Overview
About
Re-Bath franchisees operate local bathroom remodeling showrooms and installation operations, managing sales consultations, project design, customer acquisition, and coordination of installation teams. Day-to-day activities include customer consultations, quote preparation, project management, inventory oversight, and local marketing execution to drive bathroom renovation contracts.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Re-Bath presents moderate-to-cautionary risk due to unresolved litigation, lack of financial verification, slow unit growth, and a track record of franchisor disputes that merit detailed franchisee validation.
Score breakdown · what drove the 39 / 100 rating
- 01MINORPending 2025 arbitration case regarding technology fees suggests current operational disputes and potential for unexpected cost increases
- 02HIGHHistory of litigation (4 cases including 2018 contractual breach arbitration award) indicates pattern of franchisor-franchisee conflicts and enforcement issues
- 03HIGHNo Item 19 financial disclosures (Going Concern: False) prevents verification of actual franchisee profitability claims; stated $382,615 net income cannot be independently validated
- 04MEDModest unit growth of 6.6% YoY with only 145 units suggests limited brand momentum and potential market saturation concerns
- 05MINORHigh investment-to-net-income ratio (initial investment of $275,875-$606,925 vs. average net of $382,615) creates extended payback period and elevated risk exposure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Re-Bath · FDD (2025) PDF