Five Star Bath Solutions franchise unit economics
Five Star Bath Solutions franchisees sell and install bathroom renovations in exclusive territories, and most hold more than one territory.
Five Star Bath Solutions franchise at a glance
Five Star Bath Solutions' 2026 FDD reports 2025 sales per franchisee by tenure and by the number of locations held, with lead and close-ratio figures, plus a profit and loss for the company-controlled operation.
Five Star Bath Solutions reports that the 62 franchisees that operated all of 2025 averaged $1,947,044 of sales, with a median of $1,375,385, according to Item 19 of Five Star Bath Solutions’ 2026 FDD, issued 3 April 2026. Fees paid to Five Star Bath Solutions come to about 8.85%* of sales.
- Five Star Bath Solutions franchisees sell and install bathroom renovations in exclusive territories of up to about 150,000 households.
- A Five Star Bath Solutions franchise costs $162,000 to $333,500 to open for one location, including the $59,500 initial franchise fee.
- A Five Star Bath Solutions franchise pays a royalty of 6% of Gross Revenue, or 5% above $1,000,000 in a calendar year, payable when a job is booked.
- A Five Star Bath Solutions franchisee must spend at least 10% of annual Gross Revenue on territory marketing, which includes a National Marketing Fee of up to 2.5%.
- Five Star Bath Solutions franchisees in Item 19 held 4 locations each on average, so the sales figures cover a franchisee’s whole business, not one location.
- Five Star Bath Solutions’ company-controlled operation reported $18,023,077 of 2025 sales and EBITDA of 13.12%.
- Five Star Bath Solutions had 345 franchised and 3 company-owned outlets at the end of 2025, up from 89 franchised at the start of 2023.
These figures come from Five Star Bath Solutions's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Five Star Bath Solutions Conversion Package →- The 62 franchisees in Item 19 averaged $1,947,044 of sales in 2025, and the median was $1,375,385. 21 of the 62, or 33.87%, reached or passed the average. Sales ranged from $0 to $10,308,441.
- Average sales are higher in each later tenure group. $1,514,005 at 12 to 24 months of operation, $1,947,012 at 25 to 36 months and $2,711,258 at 37 months and beyond. The medians are $1,292,350, $1,538,992 and $1,717,406.
- In the first full year, one-location owners averaged more in total than multi-location owners. $1,646,156 against $1,504,566. The multi-location owners in that group held 4 locations on average, about $376,142* a location. At 37 months and beyond the order reverses: $407,062 for one-location owners and $3,018,484 for multi-location owners.
- One-location owners closed a higher share of quotes at every tenure. 27.82% against 22.54% in the first full year, 55.61% against 30.39% at 25 to 36 months and 58.82% against 30.51% at 37 months and beyond. At 37 months and beyond they had 54 leads a month against 387.
- The royalty and National Marketing Fee are payable when a job is booked, not when it is completed. Item 6 says the royalty is paid weekly, currently on Wednesdays. The franchisee’s customer may pay later, as the installation is done.
Sales by tenure
How much does a Five Star Bath Solutions franchise make?
| Months of operation | Franchisees | All owners | One-location owners | Multi-location owners | Locations per multi-location owner |
|---|---|---|---|---|---|
| 12 to 24 | 30 | $1,514,005 | $1,646,156 | $1,504,566 | 4 |
| 25 to 36 | 15 | $1,947,012 | $784,088 | $2,125,923 | 5 |
| 37 and beyond | 17 | $2,711,258 | $407,062 | $3,018,484 | 3 |
| All full-year franchisees | 62 | $1,947,044 |
As printed in the Item 19 tables (pages 61 to 64, printed as images). The FDD does not split the 62 into one-location and multi-location owners by count. “Average Annual Sales” is the total Gross Sales of a franchise business in 2025, so a multi-location owner’s figure covers all of its locations.
The 62 Five Star Bath Solutions franchisees that operated all of 2025 averaged $1,947,044 of sales. The median was $1,375,385, and 21 of the 62 reached or passed the average. Item 19 excludes the 34 franchisees that had not operated for at least 12 months.
The averages are per franchisee, and the 62 franchisees held 4 locations each on average. Item 19 prints the location counts as whole numbers. Dividing the $1,947,044 average by 4 gives $486,761* a location, an approximate figure.
Gross Sales is total revenue reported by each franchise business, without any deduction. The data comes from franchisee sales reports and the franchisor’s access to the required sales software. Item 19 gives no franchisee costs or profit.
In the first full year, one-location owners averaged $1,646,156 and multi-location owners $1,504,566. At 25 to 36 months the figures are $784,088 and $2,125,923, and at 37 months and beyond $407,062 and $3,018,484. Item 19 does not give the number of owners in each column.
Per location, the multi-location averages are about $376,142, $425,185 and $1,006,161* across the three tenure groups. These divide each average by the printed whole-number location count of 4, 5 and 3.
Company-controlled results
Company-controlled profit and loss, 2025
| Line | Amount ($000) | Share of revenue |
|---|---|---|
| Total revenue (contracted sales) | $18,023 | 100% |
| Install labor | $2,203 | 12.22% |
| Installation materials | 4,236 | 23.50% |
| Sales commissions | 1,451 | 8.05% |
| Total cost of goods sold | $7,890 | 43.78% |
| Marketing and advertising | 4,435 | 24.61% |
| Personnel | 1,279 | 7.10% |
| Royalty | 911 | 5.05% |
| General office | $400 | 2.22% |
| Other operating expenses | 358 | 1.99% |
| Ad fund | 180 | 1.00% |
| Insurance | 143 | 0.79% |
| Professional | 61 | 0.34% |
| Total operating expenses | $7,768 | 43.10% |
| EBITDA | $2,365 | 13.12% |
As printed on page 59 (an image). The table is in thousands of dollars. The Item 19 averages table on page 61 gives the operation’s 2025 sales as $18,023,077.
The company-controlled operation reported 2025 revenue of $18,023,077 and EBITDA of $2,365 thousand, 13.12% of revenue. These figures are for the company-controlled operation, not for franchisees. Item 19 gives no profit figures for franchisees.
Item 19 says the operation, in Macomb, combines six territories and reflects all company-controlled locations. The franchisor acquired it in December 2024 from Dean Hartley, the brand president, and operated it through 2025. It also tests new marketing approaches before they are released to the system.
The franchisor says the statement omits owner-level expenses in significant part. It also omits certain inventory expenses and adjusts for marketing spent on work not reflected in the revenue. Owner add-backs have been removed.
Marketing and advertising is the largest expense line, at 24.61% of revenue. Cost of goods sold is 43.78%: install labor 12.22%, installation materials 23.50% and sales commissions 8.05%.
The averages table counts 7 locations for the company-controlled operation, the profit and loss text says six territories, and Item 20 lists 3 company-owned outlets in Michigan. The FDD does not reconcile the three counts.
Spread of results
How 2025 sales spread across franchisees
| Group | Franchisees | Average | Median | Low | High | At or above average |
|---|---|---|---|---|---|---|
| 12 to 24 months | 30 | $1,514,005 | $1,292,350 | $0 | $4,520,029 | 11 (36.67%) |
| 25 to 36 months | 15 | $1,947,012 | $1,538,992 | $641,646 | $7,174,141 | 6 (40%) |
| 37 months and beyond | 17 | $2,711,258 | $1,717,406 | $196,888 | $10,308,441 | 6 (35.29%) |
| All full-year franchisees | 62 | $1,947,044 | $1,375,385 | $0 | $10,308,441 | 21 (33.87%) |
As printed in the notes to the Item 19 tables (pages 61 to 64, printed as images). Item 19 does not publish quartiles.
In every tenure group the median is below the average. Between 33.87% and 40% of franchisees reached the average in each group, so a smaller number of higher-sales franchisees lifts the averages.
Sales ranged from $0 to $10,308,441 across the 62 franchisees. The $0 low is in the 12 to 24 month group; the highest figure is in the 37 months and beyond group.
The franchisees averaged 336 leads and 81 appointments a month, with a close ratio of 27.47%. The median was 272 leads, 64 appointments and a 25.18% close ratio. The company-controlled operation averaged 2,598 leads, 578 appointments and 28.17%.
At 37 months and beyond, one-location owners averaged 54 leads and 22 appointments a month and closed 58.82%. Multi-location owners averaged 387 leads and 112 appointments and closed 30.51%. Monthly sales were $33,922 and $251,540.
Sales per appointment were higher for multi-location owners at 37 months and beyond. Monthly sales divided by monthly appointments gives about $1,542 for one-location owners and $2,246* for multi-location owners.
Brand charges
Brand charges
| Charge | As printed | A year at $1,947,044 * |
|---|---|---|
| Royalty | 6% of Gross Revenue, 5% above $1,000,000 in a calendar year; payable on booking; monthly minimum $1,000 (months 7–12), $1,500 (year 2), $2,000 (year 3), $2,500 (from year 4) | $116,823 at 6% |
| Territory marketing | At least 10% of annual Gross Revenue, including the National Marketing Fee; any shortfall is paid as National Marketing Fees | $194,704 |
| National Marketing Fee (inside the 10%) | Up to 2.5% of monthly Gross Revenue, payable on booking; monthly minimum $350 (months 7–12), $600 (year 2), $800 (year 3), $1,200 (from year 4) | Up to $48,676 |
| Regional marketing fund | Currently 0; up to 2% of gross revenue if 65% of franchisees in a region vote for it; credited to territory marketing | $0 |
| Operations software | $1,100 to $2,500 a month | $13,200 to $30,000 |
| Call center | $250 a month plus $1.50 a minute; paid by the marketing fund for the first three months | $3,000 plus minutes |
| Accounting software and bookkeeping | $0 to $250 and $0 to $300 a month, paid to vendors | $0 to $6,600 |
| Paid to the franchisor: royalty, National Marketing Fee, lowest software and call center base | $172,228 (8.85%) |
Rates as printed in Item 6 (pages 15 to 25). Dollar amounts are Averan calculations at the franchisee average, which covers 4 locations on average. The total applies 6% to the first $1,000,000 and 5% above it ($107,352); Item 6 does not say whether 5% applies to all revenue once $1,000,000 is passed. The Item 6 table prints a $200 National Marketing Fee minimum; the Item 6 notes and the franchise agreement give $350 rising to $1,200, used here. Territory marketing is spent by the franchisee, not paid to the franchisor.
The royalty is 6% of Gross Revenue, falling to 5% for Gross Revenue above $1,000,000 in a calendar year. It is payable on booking the job, not on completion, and is paid weekly, currently on Wednesdays.
The monthly royalty minimum starts in the 7th month at $1,000 and reaches $2,500 from the 37th month. At 6%, $2,500 a month equals the royalty on $500,000* of annual Gross Revenue. A franchisee that does not report sales through the proprietary software pays the greater of $3,000 a month or 6% of its 12-month average.
Territory marketing must be at least 10% of annual Gross Revenue. It includes the National Marketing Fee and online lead generation from the designated vendor. Item 7 says marketing typically runs 10–20% of revenue and requires at least $20,000 a month by month three.
Item 12 sets minimum annual revenue targets to keep the territory protected. They are $1.50 per household in year 2, $2.00 in year 3 and $3.00 from year 4: $225,000, $300,000 and $450,000* for a 150,000-household territory. A franchisee below the target may pay the royalty difference to keep the territory.
The annual convention is required. Registration is currently $1,000, and Item 6 estimates $1,000 to $3,500 for travel, food and lodging to attend.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $59,500 | $59,500 |
| Quick Start Package | $25,000 | $25,000 |
| Optional Quick Start Package trailer | $0 | $40,000 |
| Annual conference registration deposit | $1,000 | $1,000 |
| Marketing | $35,000 | $65,000 |
| Business licenses and permits | $2,000 | $5,000 |
| Warehouse, premises and show displays | $1,500 | $4,500 |
| Supplies, inventory and equipment | $7,500 | $32,500 |
| Computer equipment and software | $1,000 | $2,000 |
| Travel and living for training | $1,500 | $3,000 |
| Vehicle or trailer, with wrap | $500 | $32,500 |
| Insurance | $5,000 | $7,000 |
| Professional services | $500 | $1,500 |
| Recruiting and personnel | $2,000 | $5,000 |
| Working capital, 3 months | $20,000 | $50,000 |
| Total | $162,000 | $333,500 |
As printed on pages 26 and 27. The lines add to the printed totals.
Item 7 estimates $162,000 to $333,500 to open one Five Star Bath Solutions location. The estimate assumes the owner is the salesperson. Working capital covers about 3 months.
The initial franchise fee is $59,500 for a territory of up to about 150,000 households. Extra households cost $0.40 each. Territories bought together cost $59,500 for one, $99,500 for two, $134,500 for three, $164,500 for four, $194,500 for five and $224,500 for six.
A two-location estimate with a hired salesperson is $202,000 to $570,000. It includes the $99,500 fee for two territories. Some row labels in that table appear out of line with their amounts; the amounts add to the printed totals.
An existing similar business that merges into the franchise gets a discount on the initial fee. It is 25% at $200,000 of annual gross sales, 50% at $300,000, 75% at $400,000 and 100% at $500,000 and above. A veteran discount of 10% is also offered.
Item 11 puts the typical time from signing to opening at about 90 days. The franchise must open within 120 days of signing. Item 7 recommends at least 1,000 square feet of warehouse space; a storefront is not required.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Opened | Terminated | Not renewed | Franchised at end | Company-owned at end | Transfers |
|---|---|---|---|---|---|---|---|
| 2023 | 89 | 91 | 7 | 0 | 173 | 3 | 5 |
| 2024 | 173 | 147 | 14 | 0 | 306 | 3 | 16 |
| 2025 | 306 | 76 | 31 | 6 | 345 | 3 | 25 |
As printed in Item 20 Tables 1 to 4. No outlets were reacquired by the franchisor or ceased operation for other reasons. The termination counts for 2024 and 2025 are printed across two lines in the totals row; the state rows confirm 14 and 31.
Five Star Bath Solutions had 345 franchised outlets at the end of 2025, up from 89 at the start of 2023. 314* opened over the three years, 52* were terminated and 6 were not renewed.
Openings fell from 147 in 2024 to 76 in 2025, and terminations rose from 14 to 31. The franchised count grew by 39 in 2025.
The franchisor had 3 company-owned outlets, all in Michigan, in each year. Item 1 counts 348 franchises in operation at the end of 2025, which matches 345 franchised and 3 company-owned.
15 franchise agreements were signed but not opened at the end of 2025. The franchisor projects no new franchised or company-owned openings in 2026 in Table 5.
Item 21 attaches the audited financial statements of the parent, Five Star Franchising, L.L.C., with its guarantee of the franchisor’s obligations. The parent is owned by FS PEP Holdco, LLC, an affiliate of Princeton Equity Group.
Questions we get asked
Questions owners ask
How much does it cost to open a Five Star Bath Solutions franchise?
The 2026 FDD estimates $162,000 to $333,500 for one location with the owner as salesperson, including the $59,500 initial franchise fee and a $25,000 Quick Start Package. A two-location estimate with a hired salesperson is $202,000 to $570,000.
What fees does Five Star Bath Solutions charge?
A royalty of 6% of Gross Revenue, 5% above $1,000,000 in a calendar year, payable when a job is booked, with a monthly minimum from the 7th month. Franchisees must spend at least 10% of annual Gross Revenue on territory marketing, which includes a National Marketing Fee of up to 2.5%. Operations software is $1,100 to $2,500 a month.
How much revenue does a Five Star Bath Solutions franchise make?
The 62 franchisees that operated all of 2025 averaged $1,947,044 of sales, and the median was $1,375,385. The franchisees held 4 locations each on average, so these are figures for a franchisee’s whole business. By tenure the averages were $1,514,005 at 12 to 24 months, $1,947,012 at 25 to 36 months and $2,711,258 at 37 months and beyond.
Does Five Star Bath Solutions publish profit figures?
Item 19 gives a 2025 profit and loss for the company-controlled operation only: revenue of $18,023,077 and EBITDA of 13.12% of revenue. The franchisor says the statement omits owner-level expenses in significant part. There are no profit figures for franchisees.
What does Item 19 show for one-location and multi-location owners?
In the first full year, one-location owners averaged $1,646,156 and multi-location owners $1,504,566, with 4 locations on average. At 37 months and beyond, one-location owners averaged $407,062 and multi-location owners $3,018,484, with 3 locations on average. One-location owners had higher close ratios at every tenure.
How many Five Star Bath Solutions locations are there?
At the end of 2025 there were 345 franchised outlets and 3 company-owned outlets, according to Item 20. 76 franchised outlets opened in 2025, 31 were terminated and 6 were not renewed. 15 agreements were signed but not yet open.
Questions worth putting to Five Star Bath Solutions
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Five Star Bath Solutions see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Five Star Bath Solutions locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
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Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Five Star Bath, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Five Star Bath Solutions is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Five Star Bath, LLC, 2026 Franchise Disclosure Document, issued 3 April 2026.