Cost to Start a Five Star Bath Solutions Franchise in 2026

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:

• Franchise fee: $40,000–$80,000 (varies by territory population and exclusivity tier)
• Initial product inventory and display materials: $15,000–$30,000
• Vehicle(s) for installation crews (wrap, decal): $20,000–$50,000
• Tools, equipment, and installation hardware: $10,000–$25,000
• Technology (CRM, project management, estimating software): $3,000–$8,000
• Office setup (home office or small commercial space): $2,000–$10,000
• Marketing (launch campaign, home show participation, digital): $10,000–$25,000
• Training (initial certification program): $5,000–$12,000
• Insurance and licenses: $5,000–$12,000
• Working capital (3–6 months): $30,000–$60,000
• Miscellaneous pre-opening: $5,000–$10,000

Five Star Bath Solutions is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths at $125K–$270K:

• SBA 7(a) loan: The SBA 7(a) program covers the full investment range. Standard path for Five Star Bath Solutions franchisee financing — covers franchise fee, inventory, and working capital.
• Equipment financing: Installation vehicles, tools, and display equipment can be financed separately at 5–7 year terms to reduce the main SBA loan balance.
• SBA 504 loan: For franchisees purchasing real property for an office or warehouse, the SBA 504 program provides long-term fixed-rate financing.
• Working capital line of credit: Bridges payroll and marketing costs during the initial customer acquisition ramp before project revenue reaches steady state.

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.

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:

• DSCR 1.25×+ on project pipeline revenue: SBA SOP 50 10 8 sets a minimum DSCR of 1.15×; home remodeling franchise lenders require 1.25×+ on projected installation revenue. Unlike foot-traffic retail, Five Star Bath Solutions revenue is project-based — lenders will probe the territory’s home improvement demand depth, ask for a project pipeline projection with realistic job count assumptions, and stress-test DSCR at 70–80% of projected job volume.
• Equity injection 10–15%: At $125K–$270K total project cost, equity injection runs $12,500–$40,500 from non-borrowed funds per SBA SOP 50 10 8. Some lenders require up to 20% ($25,000–$54,000) given the project-revenue risk profile of remodeling franchises.
• State contractor licensing as disbursement condition: Home remodeling and bathroom installation businesses require state contractor licenses in most jurisdictions (home improvement contractor license, plumbing contractor license where applicable). SBA lenders require proof of required state licensing before releasing funds — delays in licensing can extend time-to-close by 30–90 days.
• Vehicle and installation equipment collateral: Five Star Bath Solutions operators use installation vehicles (vans/trucks) and specialized acrylic bath system tools. SBA lenders value vehicles at 80–90% liquidation and specialized remodeling tools at 40–60% liquidation. Vehicle collateral is the strongest hard asset in the collateral package.
• Home improvement sales experience strengthens DSCR case: Lenders underwriting project-based remodeling franchises place significant weight on the operator’s home improvement or sales background. Documented experience closing in-home sales consultations or managing installation crews materially strengthens the revenue ramp assumption and consequently the DSCR case for a new territory in the initial 12 months.