ReBath

The 3 cases initiated against the franchisor exceed typical litigation levels for this category. Can you provide details on the nature of these cases, their outcomes or current status, and what the pending case involves?

Transfer fees of $25,000 are nearly double the typical range for home services franchises. What is included in this transfer fee, and is it fully refundable if the transfer is denied?

Unit closures more than tripled in 2024 (8 closures vs. 1-2 in prior years). What factors drove this increase, and are there specific territorial or market conditions contributing to the closures?

Item 19 shows median gross sales of $2.5M and average gross sales of $3.9M, well above typical for this category. How many units reported these figures, and what percentage of franchisees achieve sales in these ranges?

The non-compete radius of 20 miles is narrower than typical for home services. If you exit the franchise, can you open a competing bathroom remodeling business in the same territory after 2 years?

The agreement requires exclusive purchase of core bathroom products from the franchisor or affiliates. What percentage of typical unit costs are these mandatory purchases, and are there limits on pricing or margin requirements?

The renewal fee is $12,500 (25% of current initial fee). Are there any other renewal requirements or modifications to the franchise agreement at the time of renewal?

Personal guarantees are required from all principals with joint and several liability. Does the franchisor require spouse or family member guarantees, and are there limits to this liability?

What is the current status of the 1 pending litigation case, and are there any regulatory investigations or complaints filed with state franchise regulators?

The termination causes count is 12, below the typical range. What are the primary grounds for termination, and how frequently are terminations enforced for technical vs. material breaches?

Of the 8 unit closures in 2024, how many were franchisor terminations, franchisee-initiated exits, or other circumstances? What were the primary reasons cited?

The system requires all other supplies (non-core) to be approved before purchase. What approval process exists, and can franchisees source from competitors if approved suppliers are unavailable or uncompetitive on price?

Can you provide a breakdown of the $3.9M average gross sales by unit age, location type (new vs. mature markets), and franchisee experience level?

The investment score of 58 is below typical range. What is the total initial investment required beyond the $50,000 franchise fee, and what does this include?

Support and training scored 100 (above typical). What ongoing training is provided, how frequently, and are there additional fees for training beyond the annual royalty?

If a franchisee wishes to transfer ownership, does the franchisor have a right of first refusal, and what conditions must the buyer meet?

The agreement specifies 2 renewal options for 5-year terms. If you do not meet the 9 renewal conditions at the first renewal, can you continue operating under the existing agreement, or is termination required?

Are there any territory modification clauses that allow the franchisor to adjust territory size or add competing units if performance metrics are not met?

The 2024 data shows 5 units ceased operations for reasons other than closure or termination. What does 'ceased other' mean, and how is this tracked differently from closures or terminations?