Five Star Bath Solutions franchise startup costs run $125K–$270K for a bathroom remodeling franchise built on factory-direct materials and fast 1–3 day installations. A mid-tier investment in a high-demand home services category.
Five Star Bath Solutions was founded in 1996 and operates 200+ franchise locations across the United States and Canada. The brand specializes in bathroom remodeling using proprietary factory-direct acrylic and composite products — tub-to-shower conversions, bath liners, wall surrounds, and accessibility solutions — installed in 1–3 days without demolition. The factory-direct materials model and rapid installation timeline differentiate Five Star from traditional tile-and-grout remodeling contractors. Prospective franchisees should review the current Franchise Disclosure Document (FDD) under the FTC Franchise Rule (16 CFR Part 436).
Five Star Bath Solutions franchisees operate a home services business focused entirely on bathroom remodeling. The product line centers on factory-manufactured acrylic bath systems installed over existing surfaces — eliminating demolition, reducing labor time, and enabling the 1–3 day completion promise that drives customer appeal. Franchisees hire installation crews and a sales force, run local marketing, and manage customer relationships from first call through installation warranty. Five Star provides proprietary product manufacturing, project management software, and marketing support. The territory-exclusive model gives franchisees protected geographic rights within a defined population zone.
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Five Star Bath Solutions franchise runs $125,000–$270,000. Primary cost drivers include the franchise fee, initial product inventory, vehicles, and working capital to bridge the customer acquisition ramp. Key cost components:
Five Star Bath Solutions charges an ongoing royalty of 5–8% of gross sales, tiered by revenue volume — the royalty rate decreases as annual gross revenue increases, rewarding higher-volume operators. Marketing fund contributions support national and regional campaigns. The factory-direct materials model means franchisees purchase product through Five Star's supply chain, which ensures margin control and product consistency but requires active inventory management.
Five Star Bath Solutions is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths at $125K–$270K:
Five Star Bath Solutions franchisees typically target breakeven within 18–36 months. Home remodeling is a high-ticket transaction category — average bath remodel jobs range from $5,000–$15,000 — so unit economics can be strong even with moderate monthly project volume. The primary ramp challenge is local marketing: first-year franchisees must build brand recognition in their territory through home shows, digital advertising, and referral networks. Operators who allocate aggressively to launch marketing and community presence in year one tend to reach breakeven faster.
Five Star Bath Solutions suits operators with home services, construction, or sales management backgrounds who can run a crew-based service business. Typical financial thresholds are net worth of $250K+ and liquid capital of $50K+. Prior remodeling experience is not required — Five Star's training program covers the installation process — but experience managing field crews, estimating jobs, and driving local marketing is a meaningful differentiator. The factory-direct materials model simplifies product decisions compared to traditional remodeling businesses, but franchisees must be comfortable managing inventory and vehicle logistics.
ClearValue Lending works with home services and remodeling franchise operators on SBA 7(a), SBA 504, equipment financing, and working capital lines. Apply at Find my match. Your file routes to one matched lender.
Five Star Bath Solutions fits SBA 7(a) and SBA Express territory at $125K–$270K. The primary underwriting challenge is the project-based revenue model — unlike recurring-revenue or foot-traffic concepts, remodeling revenue depends on a pipeline of signed installation contracts. Here is what lenders evaluate:
At $125K–$180K (single territory entry-level), Five Star Bath Solutions financing is typically an SBA Express term loan covering franchise fee + vehicle + tools + working capital — loan amount $106K–$162K after 10–15% equity injection. At $180K–$270K (larger territory with higher franchise fee or multi-territory), SBA 7(a) standard is appropriate: 10-year term for working capital, 7-year for vehicles and equipment. An equipment financing supplement for the installation van can reduce the primary SBA loan balance. See SBA 7(a) vs. term loan for structural comparison.
Per the current FDD, total estimated initial investment runs $125,000–$270,000. The franchise fee ($40,000–$80,000) varies by territory; vehicles, initial inventory, and 3–6 months working capital are the other major cost drivers.
Five Star installs factory-manufactured acrylic bath systems over existing surfaces — tub-to-shower conversions, bath liners, acrylic wall surrounds, grab bars, and accessibility modifications. Installations are completed in 1–3 days without demolition, which is the primary customer value proposition versus traditional tile remodeling.
Five Star charges an ongoing royalty of 5–8% of gross sales, tiered by revenue volume. Higher-volume franchisees pay a lower royalty rate, incentivizing growth.
Five Star Bath Solutions operates 200+ franchise locations across the United States and Canada.
Yes. Five Star is listed on the SBA Franchise Directory. SBA 7(a) covers the full $125K–$270K investment range. Equipment financing for installation vehicles and tools is a common supplemental structure to manage SBA loan sizing.
SBA SOP 50 10 7 sets a minimum global DSCR of 1.15×; home remodeling franchise lenders require 1.25×+ on projected installation project revenue. The key underwriting question is how quickly a new operator can build a project pipeline — lenders will stress-test DSCR at 70–80% of projected job volume and ask for a documented marketing plan, territory home improvement demand data, and any pre-opening lead commitments as evidence of revenue ramp velocity. Source: SBA SOP 50 10 7 (sba.gov/document/sop-50-10-lender-development-company-loan-programs).
SBA SOP 50 10 7 requires equity injection from non-borrowed funds. At $125K–$270K total project cost, equity runs $12,500–$40,500 — 10–15% of project cost. Some lenders require up to 20% ($25,000–$54,000) given the project-revenue risk profile of remodeling franchises. Owner funds must be documented via bank statements; borrowed equity (home equity loans used as injection) does not qualify under SBA SOP guidelines. Source: SBA SOP 50 10 7.