Bath Fitter

The franchise fee of $80,000 is $20,000-$35,000 above the typical range for home services franchises. What specific value, training, or support justifies this premium pricing compared to competitors?

With a 0.0% royalty rate, how does Bath Fitter generate ongoing revenue from franchisees beyond the initial franchise fee and ad fund? What are the profit drivers for the company?

The transfer fee of $80,000 equals the initial franchise fee and is 5-10 times higher than typical. What does this fee cover, and is it negotiable if a franchisee is transferring to a family member?

The ad fund rate is 3.0%, above the typical 1.0-2.0% range. How is this fund allocated across marketing channels, and can franchisees request an accounting of spend and ROI?

Zero documented closures or terminations over 3 years is unusually low for the industry. Can you provide details on whether there have been any voluntary exits, silent closures, or units that went dark without formal documentation?

The initial term is 5 years versus the typical 10 years for home services franchises. What is the rationale for the shorter term, and does this align with typical build-out timelines for a bath remodeling franchise?

Renewal requires meeting 13 conditions (above the typical 6-9). Can you provide a detailed list of all renewal conditions and explain which ones are performance-based versus procedural?

The non-compete restriction of 10 miles is below the typical 25-40 mile range. If a franchisee exits and moves to an adjacent territory just outside 10 miles, could they compete directly with your company?

The franchise has grown only 2 units over 3 years (139 to 141). What is your target growth rate, and what strategies are in place to accelerate recruitment and retention?

The legal agreement requires franchisees to exclusively purchase franchised products and proprietary items from the franchisor or affiliates. What percentage of a franchisee's operating costs typically goes to these required purchases, and are prices guaranteed or subject to adjustment?

Personal guarantees are required from all entity owners but not spouses. If a spouse is actively involved in running the business, why is their personal guarantee waived, and what recourse does the franchisor have if the entity fails?

The indemnification clause requires franchisees to indemnify the franchisor for all claims, including those allegedly caused by the franchisor's own negligence. Has this clause ever been enforced or litigated, and are franchisees required to carry errors & omissions or liability insurance?

Financial Performance Item 19 was not provided. Can you share average unit volumes (AUV), median/average gross sales, and the number of units reporting for the last 2-3 years?

With no royalties collected, how is ongoing support funded (training, field support, marketing, technology)? Are there hidden costs or upsells bundled into operations?

The renewal fee is $20,000. Beyond that fee, are there any required capital investments, equipment upgrades, or remodeling costs to renew the franchise for additional 5-year terms?

Can you provide case studies or contact information for 5-10 franchisees who have completed a renewal cycle (10+ years in the system) to verify system longevity and satisfaction?

Given the 2-year, 10-mile non-compete is narrower than typical, what post-exit monitoring or enforcement mechanisms does the franchisor use, and have there been any breaches?

The territory is exclusive with encroachment protection. How is the territory defined (zip code, radius, demographics), and what happens if demographics or competitive density change during the contract term?