Five Star Bath Solutions Franchise Review (2024)
Five Star Bath Solutions Franchise Background
Five Star Bath Solutions “FSBS” offers quality bathroom renovation services for homeowners looking to renovate their bathrooms
Five Star Bath Solutions is a self-proclaimed “Franchisee First” business which has led them to create and develop tools, support, technologies, and competitive advantages for all of their franchisees. They have proprietary technologies to allow their franchisees to differentiate themselves from all competitors and scale their business.
They have a full in-house marketing and advertising company, demonstrated by the fact that 60% of their leads come through online franchisor-managed sources. Additionally, they have a cutting edge proprietary sales center and quoting technology/software to help their franchisees build their brand and ensure greater success.
Five Star Bath Solutions is led by an experienced franchise management team, headed by CEO and founder Scott Abbot. Scott is a very accomplished entrepreneur. He currently serves as Chairman and Chief Executive Officer of Five Star Franchising, Inc. Mr. Abbott focuses on the development of technology, products, services, and partnerships that enable each client to be a leader in their industry. He led Five-Star Painting from having only 1 franchise in August 2005 to over 50 franchises in 2008.
Mr. Abbott has been recognized personally with several awards for his entrepreneurship, being named to the Utah Business Forty Under 40, and receiving recognition as Innovator of the Year and Entrepreneur of the Year while in Canada.
Franchise Home Services Industry Analysis
Franchise Strengths
- High margin business that has the ability to scale within the market
- Very strong franchisor support with training, hiring, negotiated vendors, and marketing efforts
- Superior product / service at an affordable, mid-market price point
Franchise Weaknesses
- Reliant on having a skilled contractor, at least for the first year until a contractor’s license can be attained (if desired)
- Referrals are an important part of the business, so volume sales may take some time to grow over the first year
- Limited service / product offering – only remodels bathrooms
Franchise Opportunities
- Opportunity to grow the flow of leads quickly with FSBS as they continually optimize their various online sales channels
- Huge industry – over $300bn in annual spending on home remodeling, according to the Join Center for Housing Studies at Harvard University
- In 2002, a survey of American homeowners who had remodeled their kitchens found that, on average, they had expected the job to cost $18,658; in fact, they ended up paying an average of $38,769
Franchise Threats
- Operating in a large, competitive market
- At the mercy of the overall housing industry, if the housing industry falls then this will have a significant impact on sales
How much is a Five Star Bath Solutions Franchise?
| Five Star Bath Solutions Franchise cost ranges from $75,530 to $141,100 according to the 2019 FDD. | ||||
|---|---|---|---|---|
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
| Low | High | |||
| Franchise Fee | $40.000 | $40.000 | Upon signing FA | Franchisor |
| Advertising | 15.000 | 20.000 | As Incurred | Franchisor or Approved Suppliers |
| Contractor License / Licenses and Bonds | 0 | 2.250 | Prior to Opening | State Administrators, Gov Agencies, ect. |
| Lease and Utilities Deposits and Payments | 0 | 1.000 | As Incurred | Landlord, Utility Companies, and Suppliers |
| Franchise Premises Rent | 0 | 1.500 | As Incurred | Landlord |
| Supplies, Inventory, and Equipment | 2.500 | 5.000 | Prior to Opening and As Incurred | Franchisor or Suppliers |
| Office Set-up | 500 | 1.500 | Prior to Opening and As Incurred | Suppliers |
| Computer Equipment | 500 | 1.500 | Before Initial Training | Suppliers |
| Travel and Living Expenses to Attend Training | 3.000 | 5.000 | Before and During Training | Airlines, Hotels, Restaurants, ect. |
| On-Site Installer Training Cost | 1.500 | 3.000 | Before and During On-Site Training | Franchisor, Approved Suppliers, Airlines, Hotels, Restaurants, ect. |
| Cell Phone (first 3 months) | 150 | 750 | Before Starting Operations | Suppliers |
| Clothing and Uniforms | 0 | 250 | After Starting Operations | Franchisor or Approved Suppliers |
| Car Signs / Decals | 1.000 | 3.500 | Before Opening | Franchisor or Approved Suppliers |
| Vehicle/Trailer | 0 | 35.000 | As Incurred | Suppliers |
| Insurance (first 3 months) | 180 | 750 | Before Opening | Insurers |
| Professional Services | 0 | 2.000 | As Incurred | Attorneys, Accountants, ect. |
| Miscellaneous Opening Costs | 200 | 600 | As Incurred | Suppliers, Utilities, ect. |
| Trade Show Displays | 5.000 | 7.500 | Before Opening | Franchisor or Suppliers |
| Additional Funds (6-12 months) | 6.000 | 10.000 | As Incurred | Employees and 3rd Parties |
| Total | $75,530 | $141,100 | – | – |
| Royalty | Brand Ad-Fund | Local Ad-Fund | ||
How Much does a Five Star Bath Solutions Franchise make?
| Average Leads Per Month (A) | 57 |
| Average Appointments Per Month (B) | 41 |
| Average Monthly Sales | $45.538 |
| Average Annual Sales (D) | $546.457 |
| Average Close Ratio (E) | 38% |
| Average Job Price | $6.606 |
| Average Leads Per Month (A) | 84 |
| Average Appointments Per Month (B) | 40 |
| Average Monthly Sales | $30.208 |
| Average Annual Sales (D) | $362.208 |
| Average Close Ratio (E) | 32% |
| Average Job Price | $6.606 |
| “Slugging” Percentage (system-wide average of revenue divided by total system-wide appoitments) | $1.035 |
FDD Disclaimer: “The following information includes historical financial performance representations about existing franchisees that operated and reported data for the 2018 calendar year. These financial performance representations disclose only average sales and key performance indicators and do not take into account the cost of services performed or franchisee expenses.”
