Franchising 101

1. FRANCHISE FEES

The franchise fee is a one-time payment that a franchisee makes to the franchisor for the right to use the company's brand, products, and intellectual property. Many times this also includes the rights to a secured or protected territory. The franchise fee is included in the total investment costs.

2. THE TOTAL INVESTMENT RANGE

The total investment range includes the franchise fee and any / all costs associated with getting your business up and running. Typically, the investment range also provides working capital for your initial 3 months of business.

3. WHAT ARE ROYALTIES?

Every franchisee pays royalties, which are an ongoing % of gross revenue. Royalties are collected by the franchisor to help maintain the system that the franchisor has built. Royalties can range anywhere from 4% to 12%, with the average being 6% to 8%.

4.WHAT IF I DON'T HAVE EXPERIENCE?

Directly applicable experience in the industry is not required for the concepts presented. Included in the total investment range is training. The franchisor will train you 100% on successfully operating the business. That is one of the benefits of franchise investment. You are in business for yourself but not by yourself.

5. HOW MUCH MONEY CAN I MAKE?

It's natural to want to know the return on investment (ROI). One stage in the discovery process is called "Validation." This is where you will be able to speak with other franchise owners to understand the financial opportunity of the business. The Federal Trade Commission (FTC) prohibits me from making any financial claims as a franchise broker and the Franchisor.

6. The FDD

The purpose of the Franchise Disclosure Document (FDD) is to provide prospective franchisees with information about the franchisor, the franchise system, and the agreements they will need to sign so they can make an informed decision. You will gain insight into the FDD further into the process

Founded in 1996, Five Star Bath Solutions has grown into one of the largest franchise systems of its kind in the bathroom renovation industry. Five Star Bath Solutions has built its reputation on professional service, completing bathroom renovation projects with quality and efficiency, while also being on time to customer appointments traits that are often overlooked in the service industry.

Our philosophy is focused on following a system to ensure highly satisfied customers at every stage of their bathroom renovation project. From customized marketing materials to a Sales Support team dedicated to scheduling new appointments, Five Star Bath Solutions provides the tools and support needed to help franchisees grow their business.

  • Recession-resistant
  • A proven business model
  • Low competition
  • Low staffing requirements
  • Products people want
  • Excellent profit margins
  • Lowest start-up cost