Five Star Bath Solutions

The technology fee of $1,100 per month is substantially higher than industry norms—what specific services and software are included, and can you provide a breakdown of what this fee covers?

Your system grew 58.9% in the past year with 96 new units added. What are the primary drivers of this growth, and how has franchisee profitability scaled with this expansion?

Closures increased from 4 units in 2022 to 14 units in 2024. What are the primary reasons for these closures, and are there any common patterns among closed locations?

The total potential franchise term is 10 years with no renewal options listed. Why does this franchise not offer renewal periods, and what happens to a franchisee's business after year 10?

Your non-compete restriction of 100 miles is twice the industry typical range. Can you explain the business rationale for this exceptionally broad geographic restriction?

The agreement specifies 13 non-curable defaults allowing immediate termination without cure period. Can you provide the complete list of these 13 defaults and explain why they cannot be cured?

You require annual minimum revenue targets with potential territory reduction as a penalty. What are the specific revenue thresholds by territory type, and how many franchisees have experienced territory reductions?

All equipment, inventory, and marketing materials must be purchased from you or approved suppliers only. Can you provide a list of approved suppliers and explain the pricing approval process?

The franchise agreement requires personal guarantees from all owners and indemnification for franchisor claims. What types of claims have been most commonly indemnified, and what is the average indemnification cost?

Your dispute resolution requires mandatory binding arbitration in Utah County, Utah under Utah law. How many disputes have gone to arbitration in the past 3 years, and what were the primary types of disputes?

Late fees of 1.5% monthly (18% annually) apply to overdue payments. How frequently do franchisees incur these late fees, and what is the average amount collected annually?

The renewal fee is $2,500 and requires mandatory facility refurbishment. What is the average cost of required refurbishment, and can you provide examples of refurbishment requirements?

With 13 termination causes but only a 4.6% termination rate, how many franchisees are currently in breach or default of these termination causes?

Your 3-year growth rate of 40.2% is significantly above industry norms. Is this growth primarily from new unit openings or acquisitions of existing businesses, and what is the franchisee retention rate for units open 3+ years?

Item 19 financial performance is available. Can you clarify why specific gross sales figures and reporting unit counts were not provided in the disclosure, and how many units reported financials?

The transfer fee is $10,000. How many transfers have occurred in the past 3 years, and are there restrictions on who can assume a transferred franchise?

The franchisee termination rate is 4.6% while the non-renewal rate is only 0.8%. Why is the termination rate nearly 6 times higher than the non-renewal rate, and what does this indicate about franchise satisfaction?

Can you provide contact information for at least 10 franchisees who have closed or terminated their agreements in the past 2 years so I can understand the reasons for exit?

The exclusive territory protection is guaranteed. If the franchisor opens a corporate location or approves another franchisee nearby, what recourse does a franchisee have?

With 259 current units compared to 94 three years ago, what percentage of this growth comes from markets with established competition versus new markets, and how has unit profitability trended during this expansion?