Re-Bath Franchise Due Diligence

About Re-Bath Franchise

Bathroom remodeling franchise specializing in full bathroom renovations completed in days, not weeks.

The total initial investment for a Re-Bath franchise ranges from $226,500 to $476,500, which includes the initial franchise fee of $45,000. These figures come from the most recently available Franchise Disclosure Document (FDD) filed with state regulators.

Beyond the initial investment, franchisees pay ongoing royalties of 5% of gross sales and marketing/advertising contributions of 2% of gross sales. These ongoing fees significantly impact your real profit margin, and they are often underestimated by prospective franchisees.

What the Re-Bath FDD reveals

Based on the ReBath, LLC 2025 Franchise Disclosure Document, SharpSheets October 2025 Re-Bath analysis, Franchise Business Advisors (FBA) Re-Bath 2025 guide, VettedBiz Re-Bath profile, Franchise Direct 2025 FDD summary, Franchise Grade Re-Bath profile, FranChimp FDD database, the Re-Bath Franchise FAQ at rebathfranchise.com, the Re-Bath franchising portal, and the Franchising.com Re-Bath profile. Re-Bath began in 1978 in Arizona as a bathtub liner specialist for the motel industry, repositioned toward residential bathroom remodeling in the 1990s, and began franchising in 1991. The franchisor entity is ReBath, LLC, a Delaware limited liability company formed December 18, 2001. Principal business address is 421 W. Alameda Drive, Tempe, Arizona 85282 (often cited as Phoenix, Arizona). The parent company is Home Brands Group Holdings, LLC (AmBath/Re-Bath Holdings, Inc. is disclosed in state filings); affiliates include 5 Day Kitchens, LLC. In November 2021, TZP Group LLC, a New York-based private equity firm, acquired Home Brands Group Holdings to accelerate Re-Bath's growth. Per Franchise Direct 2025 and SharpSheets 2025, Re-Bath operates approximately 145 units across 42+ US states and has completed over one million remodels. Franchisees offer three project tiers: complete bathroom remodel, tub and shower updates (1-2 business days), and aging-in-place / accessibility solutions. Re-Bath has a national partnership with Home Depot that provides in-store kiosk presence and generates approximately 40% of business per franchisor-provided testimonial at franchising.com/rebath. Re-Bath's proprietary DuraBath acrylic wall surrounds and NS natural stone surrounds are manufactured by Re-Bath or affiliates and distributed through preferred vendors.

Item 5 and 6: Fee Structure

Initial franchise fee is $50,000 per unit per the Re-Bath FAQ and FBA 2025 guide. Total initial investment per Item 7 of the 2025 FDD ranges from $276,300 to $609,625 per the Re-Bath franchising FAQ and Franchise Business Advisors 2025 analysis (SharpSheets cites $276,000 to $610,000; VettedBiz cites $275,875 to $606,925; all sources are within the same range). Ongoing royalty is 5% to 6% of gross revenues per SharpSheets October 2025, with variance reflecting territory-specific or volume-specific provisions, OR minimum $575 per month in Year 1 per the Re-Bath FAQ. Brand advertising fund contribution is 2% of previous month's gross revenues per SharpSheets. Combined recurring fee burden is approximately 7-8% of gross sales, which is favorable for the category. Home Depot partnership is a material consideration: Re-Bath's national relationship with Home Depot provides in-store kiosk presence that generates approximately 40% of franchisee business per franchisor-provided data. This partnership is economically meaningful but creates franchisee dependency on a single third-party relationship that Re-Bath does not control directly. Franchise Agreement term is specified in Item 17; typical home-services franchise terms are 10 years initial with renewal options. Re-Bath grants protected territory for single-family residential bathroom remodeling services.

Item 19: Earnings Disclosure

Per VettedBiz analysis of the 2024-2025 FDD, yearly gross sales of approximately $2,548,254 and estimated earnings of $356,756 to $458,686 per franchise. These are strong category-level earnings figures (14-18% estimated earnings as percentage of gross sales). Per the Re-Bath Franchise Disclosure Document (April 2023) as referenced on franchising.com/rebath, the 2022 data reflected average gross sales and gross profit for 63 Re-Bath franchised businesses that opened prior to 2020, based on a 52-week fiscal period from January 1, 2022 through December 31, 2022. Of these 63 franchised businesses, 25 (or 39.7%) attained or exceeded the average gross sales per unit and 31 (or 49.2%) attained or exceeded the average gross profit. For Re-Bath franchise owners with territories of 500,000 to 1,249,999 population, the average gross profit margin in 2021 was 47.1% per the 2023 FDD Item 19. This is a strong gross margin percentage for a project-based home services business. The Item 19 segmentation by territory size (500K-1.25M population) provides meaningful underwriting benchmarks. The 47.1% gross margin combined with approximately $2.5M AUV produces ~$1.175M gross profit, from which franchise fees (~7-8% of gross sales = $175K-$200K), operating overhead, and labor costs must be deducted to reach the $356K-$458K estimated owner earnings range. Payback period varies by territory size and execution. Home Depot partnership generates approximately 40% of franchisee business per franchisor data; the remaining 60% must come from franchisee-developed marketing and referrals.

Item 20: Unit Count and Growth Trajectory

Approximately 145 units across 42+ US states per Franchise Direct 2025 summary. The system has grown meaningfully since the 1991 franchising start but remains moderate in size compared to larger home improvement categories. TZP Group private-equity ownership since November 2021 has focused on accelerating growth in the $400 billion home improvement industry per franchisor marketing materials. Item 3 litigation disclosures and Item 4 bankruptcy disclosures should be reviewed directly in the current FDD. Franchise Agreement term and renewal conditions are specified in Item 17 of the current FDD. The 2023 FDD Item 19 reported on 63 franchisees that opened prior to 2020 (the post-2020 cohort that opened during COVID and post-COVID period is not included in that older disclosure); the 2025 FDD Item 19 would reflect updated unit counts. Resale territories are available per the franchising.com/rebath listing, indicating active transfer market for existing franchises.

Top 3 Red Flags

1. Approximately 40% of franchisee business comes from the Home Depot partnership which is controlled at the Re-Bath corporate level, not the franchisee level; any disruption or renegotiation of this partnership directly affects franchisee revenue. The Home Depot relationship is a meaningful competitive moat for Re-Bath versus independent bathroom remodeling contractors: in-store kiosk presence drives consumer awareness, brand credibility by association with Home Depot, and warm leads generated through Home Depot's retail footprint. The franchisor-testimonial quote from franchising.com/rebath states: "The partnership that we have with Home Depot drives 40 percent of our business. Even if a lead isn't directly generated from our kiosk in a Home Depot store, when a customer finds out about our relationship, they trust us immediately to do their remodeling project." This concentration is both opportunity and risk: if Home Depot materially renegotiates the partnership (higher kiosk fees, preferred-installer terms favoring Home Depot's owned installation services, reduced kiosk footprint), franchisee revenue can compress 40% overnight. Home Depot has periodically expanded its owned installation services (The Home Depot Installation Services, Home Services contractor programs) that directly compete with partner-remodeler businesses. The 2021 TZP Group PE acquisition occurred well before any potential Home Depot partnership renegotiation cycle; renewals of major retail partnership agreements typically occur at 3-5 year intervals. Before signing, demand: the current status and term of the Home Depot partnership agreement, any known or planned renegotiation timing, partnership-level economics (does Re-Bath pay Home Depot a referral fee, kiosk lease fee, or revenue share that flows through to franchisee cost), and contingency plans if the Home Depot partnership is reduced or terminated.
2. High initial investment ($276K-$610K) with wide range reflecting meaningful territory, showroom, and working-capital variability; lower-tier-investment franchisees may be systematically under-resourced for competitive success in the category. The $276K to $610K Item 7 range represents a 2.2x spread, which is unusually wide and reflects multiple material cost variables: showroom size and quality (Re-Bath requires franchisee-operated showrooms with physical product displays; showroom quality directly affects customer conversion rates); warehouse space for inventory and installation staging; vehicle fleet size (installation trucks, sales consultant vehicles); initial marketing spend above the 2% brand advertising fund (which is important given 60% of business is not Home Depot-sourced); and first-year working capital for payroll, lease, inventory, and overhead during ramp period. Franchisees who open at the lower $276K end may be under-resourced for competitive execution: inadequate showroom visual impact (which correlates with higher conversion rates in high-ticket home improvement), insufficient marketing spend to supplement the 2% brand fund, or thin working capital that forces faster cash-positive pressure before operational systems are optimized. Per the 2022 Item 19: of 63 franchisees reporting, only 39.7% attained or exceeded average gross sales, meaning 60.3% underperformed the average. The underperformer distribution correlates partly with investment tier and territory quality. Before signing, demand: specific investment tier breakdown (what capabilities are lost at the $276K tier vs. $500K+ tier), franchisee performance data by investment tier, and showroom specifications and visual merchandising requirements.
3. PE-owned franchise (TZP Group since November 2021) with typical 5-7 year PE hold period creates probable ownership transition in 2026-2028 window, creating uncertainty for prospective franchisees signing 10-year Franchise Agreements in 2026. TZP Group LLC acquired Home Brands Group Holdings (Re-Bath parent) in November 2021. Typical private-equity hold periods are 5-7 years, which means a TZP exit is probable in the 2026-2028 window via secondary PE sale, strategic buyer acquisition, or public offering. PE ownership transitions typically drive: renegotiated franchisee fees at renewal, modifications to product supply chain and associated markup, pressure on shared services economics (technology platform, marketing fund administration), product-mix changes (emphasis on higher-margin service tiers), and potential consolidation of Home Brands Group affiliated brands (5 Day Kitchens LLC is an affiliate; post-PE-exit integration between Re-Bath and 5 Day Kitchens is possible). Further: the Home Depot partnership renewal cycle (Red Flag #1) and the TZP PE hold cycle are two independent sources of franchisor-level uncertainty that will both likely resolve during the initial 10-year Franchise Agreement term of any 2026 franchise. Before signing, demand: TZP Group's stated Re-Bath strategy and exit timeline, change-of-control provisions in the Franchise Agreement, and any planned operational or fee structure modifications under the current PE ownership.

Verdict

Best fit for experienced home services or construction operators with prior bathroom remodeling, general contracting, or trade specialty background, buyers with $150K+ liquid capital comfortable with the $276K-$610K investment range (and targeting the upper $450K-$610K tier for full competitive capability), operators in markets with limited existing Re-Bath density and strong demographic profile for mid-to-high-end residential bathroom remodeling (middle to high-middle income households aged 45-75 in homes built pre-2000), candidates comfortable with concentrated Home Depot partnership dependency, buyers with physical showroom operating experience and visual merchandising capability, and candidates accepting of private-equity franchisor ownership with probable 2026-2028 exit. The proprietary DuraBath product line, vertically integrated manufacturing, strong gross margins (47.1% in target territory size), and $2.5M AUV support the investment thesis for well-resourced operators. Not a good fit for first-time franchise buyers, operators without construction or home services experience, candidates investing at the $276K lower tier (60.3% of franchisees underperformed the average per 2022 Item 19), buyers in markets with existing Re-Bath density or strong independent bathroom remodeling competitor presence, or operators uncomfortable with the concentrated Home Depot partnership dependency (40% of business) and the TZP Group PE exit cycle (probable 2026-2028). Before signing, demand written clarification of: current Home Depot partnership term and economic structure, TZP Group exit timeline, Item 19 data segmented by investment tier and territory size, showroom specifications and capital requirements, product supply chain economics (DuraBath and Home Brands Group affiliate sourcing), and change-of-control provisions in the Franchise Agreement.

This analysis reflects patterns visible in the ReBath, LLC 2025 FDD, SharpSheets October 2025 Re-Bath analysis, Franchise Business Advisors Re-Bath 2025 guide, VettedBiz Re-Bath profile, Franchise Direct 2025 FDD summary, Franchise Grade Re-Bath profile, FranChimp FDD database, the Re-Bath Franchise FAQ at rebathfranchise.com, the Re-Bath franchising portal, and the Franchising.com Re-Bath profile referencing the April 2023 FDD Item 19 data. Your specific Franchise Agreement terms, Protected Territory boundaries, showroom and warehouse requirements, Home Depot partnership economic structure and term, DuraBath and Home Brands Group affiliate product supply arrangements, TZP Group change-of-control provisions, and resale territory-specific Item 19 data require review of your actual agreements with independent legal counsel. Have our AI FDD Analyzer review your specific Franchise Agreement for deal-level red flags.

Compare Re-Bath with similar franchises

Buyers evaluating Re-Bath typically also review these related FDD analyses for structural, unit-economics, and ownership comparison.

• Mosquito Joe - Home Services category comparison: $276K-$610K bathroom remodeling franchise vs pest control franchise
• SERVPRO - Home Services category comparison: project-based bathroom remodeling vs insurance-driven disaster restoration
• Handyman Connection - Home Services category comparison: specialized bathroom remodeling with Home Depot partnership vs general handyman with 15% combined fees

Key Questions Before Investing in Re-Bath

These are the due diligence questions most buyers skip before signing a franchise agreement. They go beyond what's in the FDD.

• What is the realistic Year 1 take-home pay? After royalties (5% of gross sales), ad fund contributions (2% of gross sales), rent, labor, COGS, insurance, and debt service. What do you actually keep? Use our Profit Margin Calculator to find out.
• What is the closure rate? Check Item 20 of the FDD. How many Re-Bath locations have closed, been terminated, or "ceased operations" in the last three years? A high number is a red flag.
• Are the territories truly protected? Item 12 defines your territory. Does Re-Bath reserve the right to sell through alternative channels (delivery apps, online, grocery) in your territory? Many do.
• What happens when you want out? Item 17 covers renewal, termination, and transfer. What does Re-Bath charge to transfer? Is there a non-compete after you leave? How long?
• What do current and former franchisees say? The FDD lists every franchisee's name and phone number. Call at least 10 current and 5 former ones. Our Validation Call Scripts tool gives you the exact questions to ask.
• Does the franchisor make money from you or with you? Check Item 21 (audited financials). Does Re-Bath earn most of its revenue from royalties on operating franchisees, or from selling new franchise licenses? The latter is a warning sign.
• Can you afford to lose this money? If Re-Bath fails in 18 months, what is your total financial exposure including the lease, SBA loan personal guarantee, and sunk costs? If the answer makes you sick, reconsider.

Other Home Services Franchises to Compare

Smart due diligence means comparing alternatives. Here are other home services franchises you should evaluate alongside Re-Bath.