How to Finance a Five Star Bath Solutions Franchise: Home-Based
By Marc Cornella
A Five Star Bath Solutions franchise loan usually funds a lean, home-based remodeling business rather than a storefront: the franchise fee, launch marketing, tools and technology, and the working capital needed to carry payroll and job costs until homeowner projects start paying. Because there is no showroom or real estate to build, lenders focus less on collateral and more on the owner, the territory and a realistic sales ramp.
US Professional Funding is not affiliated with, sponsored by or endorsed by Five Star Bath Solutions; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Five Star Bath Solutions Franchise Loan at a Glance
- Concept: bathroom remodeling for homeowners, including walk-in tubs, tub-to-shower and shower-to-tub conversions, shower and bath replacements, and safety and accessibility remodels.
- Initial franchise fee: $59,500, according to the franchisor’s development website, with 10% off the initial franchise fee for veterans.
- Estimated initial investment: $162,000 to $333,500, per the franchisor’s website, which directs candidates to the current FDD for up-to-date figures.
- Business model: home-based, with no brick-and-mortar location required, operating within a protected territory.
- Speed: the franchisor says most installations finish in 1 to 2 days and that launch typically takes 2 to 3 months.
- System size: more than 250 franchise locations, according to the company’s January 2026 announcement.
- Royalty and marketing fees: disclosed in Item 6 of the current FDD; confirm them there.
- SBA Franchise Directory: listed under code S0653, with no additional directory notes.
What Is Five Star Bath Solutions?
Five Star Bath Solutions sells and installs bathroom updates designed to be completed quickly, with the brand promising homeowners an updated bath in as little as 1 to 2 days. The system operates in Canada under the Bath Solutions name and expanded into the United States, and the company says the brand has been part of its parent franchise company’s portfolio since 2014.
Services include bathroom remodels, walk-in tub installation, new bathtubs and showers, bath and shower combinations, tub-to-shower and shower-to-tub conversions and safety and accessibility work. The franchisor says owners sell exclusive product lines that are not available from large retailers and use proprietary quoting and measurement software. The brand also advertises promotional financing offers to homeowners.
Why lenders view it the way they do. A home-based service franchise has low fixed overhead and no real estate risk, which lenders like. On the other hand, there are few hard assets to secure a loan, and revenue depends on the owner’s ability to generate leads, close sales and manage installation crews. Expect a lender to weigh the owner’s sales and management background heavily.
Five Star Bath Solutions Franchise Costs
Initial franchise fee. The franchisor’s website lists a $59,500 initial franchise fee. Veterans receive 10% off that fee. Item 5 of the current FDD confirms the amount and any fees for additional territories.
Real estate and build-out. Because the business is home-based, there is no showroom lease or build-out in the standard model. That keeps the loan smaller, but it also means a lender cannot rely on property or leasehold improvements as collateral.
Equipment, tools and technology. Expect to budget for installation tools, computers and tablets for the quoting and measurement software, and any vehicles or trailers your operating plan requires. Item 7 shows the franchisor’s estimate for each.
Opening costs and working capital. Launch marketing, training travel, insurance, licensing and the cash to carry payroll, product purchases and lead generation until jobs are paid all belong in the budget. Item 7 includes an additional funds line for the initial operating period.
Total investment. The franchisor’s website lists an estimated initial investment of $162,000 to $333,500. When you read the Item 7 table, look for line items such as these:
- Initial franchise fee
- Tools, equipment and technology
- Vehicles, if required by your plan
- Grand opening and launch marketing
- Training and travel
- Insurance, licenses and permits
- Additional funds for the initial operating period
The actual table may group costs differently, and where you land in the range depends on your own choices. Build your budget from the low, middle and high cases so a lender can see you have planned for each.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any brand or marketing fund contribution, technology or software fees, and transfer and renewal fees. The franchisor’s development site does not publish these, so read the FDD carefully.
How lenders factor these costs in. Lenders subtract royalties, marketing fees and technology charges from projected revenue before testing whether cash flow covers a Five Star Bath Solutions franchise loan payment. They will also model product cost, installer labor, local advertising and lead costs, and sales commissions.
Cash timing. Remodeling businesses often buy product and pay installers before a job is fully paid, so the gap between costs and collections matters. Plan working capital around that cycle.
Franchisor Requirements for New Owners
The franchisor describes its ideal candidates as driven entrepreneurs and semi-absentee owners, including people coming from corporate careers or diversifying their investments. Sales, marketing or operations experience is an advantage but not a requirement, and no remodeling experience is required. Minimum net worth and liquid capital requirements are not stated on the development page, so ask the franchise developer and check the FDD.
The approval process. The franchisor outlines four steps: learn about the brand, its market potential and investment requirements; connect with a franchise developer to review the FDD and available territories; speak with current owners, complete qualification and background checks and meet the leadership team; then sign the franchise agreement and begin onboarding. Training covers operations, sales, customer service, marketing, product sourcing and installation.
Ways to Own a Five Star Bath Solutions
A new territory. Many owners start with a new territory. Financing covers the fee, launch costs and working capital, underwritten on projections and the owner’s background. Our page on franchise start-up financing explains the typical structure.
Buying an existing territory. With a system of this size, resales can come up. A buyer can show a lender the business’s actual sales history, backlog and lead sources. Learn how financing a franchise resale works, including transfer approval.
Adding territories. The franchisor says owners can expand into additional territories as demand grows, which affects how a second loan is underwritten.
Semi-absentee ownership. The franchisor welcomes semi-absentee owners. Lenders will want to see a capable manager and a clear oversight plan; see our article on financing a semi-absentee franchise.
Financing Options for a Five Star Bath Solutions Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, an SBA 7(a) loan is often the first option buyers explore. It can combine the franchise fee, equipment, launch marketing and working capital in one loan, which suits a business with few hard assets.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived fixed assets. A home-based remodeling franchise usually has neither, so 504 rarely fits unless an owner later buys a warehouse or office.
Conventional term loans. Buyers with strong credit and liquidity, or existing business owners adding the brand, may use conventional business loans, which can offer flexibility but typically ask for stronger collateral or financial strength.
Equipment financing. Work vehicles, trailers, installation tools and technology can be financed separately, which preserves cash for marketing. See our options for franchise equipment financing and leasing.
Working capital and lines of credit. Lead generation, product purchases and installer payroll come before customer payments. A reserve or line of credit, such as franchise working capital financing, can bridge the gap between jobs and collections.
Seller financing on resales. When buying an existing territory, a seller may carry part of the price. A seller note is typically subordinate to the senior loan, and lender and program rules may limit how it can be used.
Franchisor financing. The franchisor’s website says financing is available through third-party lenders. Check Item 10 of the FDD for any financing the franchisor itself offers.
SBA Loans for Five Star Bath Solutions Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. Five Star Bath Solutions is listed under code S0653 with no additional notes, which means the directory does not flag any special document conditions for this brand. A listing clears the franchise relationship for SBA review; it does not approve any borrower.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. For a franchise in this investment range, the bigger questions are your equity injection, credit and plan to reach steady sales. Veterans should also read about franchise financing for veterans, alongside the brand’s veteran fee discount. Try the SBA loan calculator for early payment estimates, which are for planning only.
How Lenders Evaluate a Five Star Bath Solutions Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and usually require a personal guarantee.
Net worth and liquidity. Expect to show an equity injection plus reserves. With few hard assets, liquidity after closing matters even more.
Industry and management experience. Remodeling experience is not required by the franchisor, but sales leadership, team management or customer-facing experience strengthens a loan request.
Business plan and projections. Build projections from leads, appointments, close rate, average project size and installation capacity, and show how the marketing budget drives each. Our article on how lenders read a Franchise Disclosure Document explains which FDD items matter.
The FDD and franchise agreement. Lenders look at Items 5, 6, 7 and 17, any franchisor financing in Item 10, and whether Item 19 includes financial performance representations. Rely only on FDD disclosures, not outside revenue claims.
Territory. Lenders want to understand the protected territory’s size and demographics, since homeowners in the area are the entire customer base.
Historical financials for resales. For an existing territory, provide several years of financial statements, tax returns and job records.
Multi-Unit Growth and Additional Territories
Because the franchisor allows owners to expand into additional territories, growth often happens one territory at a time. Lenders will look at the first territory’s results, backlog and management depth before funding the next. Our article on multi-unit franchise financing explains how lenders handle growing owners.
Real-World Scenarios
A corporate sales leader starting fresh. A former sales director opens a new territory with an SBA 7(a) loan covering the fee, launch marketing and working capital. The lender focuses on the sales plan and the owner’s management background.
A veteran using the fee discount. A veteran applies the 10% fee reduction, contributes savings as equity and finances a work vehicle separately to keep more cash available for marketing.
A semi-absentee investor. An investor keeps a full-time job and hires an operations manager. The lender asks for the manager’s resume and an oversight plan before approving.
An owner adding a second territory. After building steady sales, an owner adds a neighboring territory with a second Five Star Bath Solutions franchise loan based on the first territory’s results.
Common Mistakes to Avoid
- Budgeting only for the franchise fee and underfunding marketing and working capital
- Skipping Item 6 and underestimating ongoing fees
- Projecting a fast sales ramp without a lead-generation budget to support it
- Ignoring the cash gap between product purchases and customer payments
- Planning a semi-absentee model without a capable manager in place
For more pitfalls in this industry, read about service contractor loan mistakes.
Next Steps to Finance Your Five Star Bath Solutions Franchise
Step 1: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm your territory. Work with the franchise developer to review available territories and talk with current owners.
Step 3: Talk with a financing specialist. Learn how lenders will size a loan for your territory and experience.
Step 4: Build your plan. Prepare projections, a marketing budget and a staffing plan for sales and installation.
Step 5: Apply for financing. Submit your personal financial statement, tax returns, projections and franchise documents.
Step 6: Close and launch. Complete training, keep working capital in reserve and start lead generation on schedule.
Five Star Bath Solutions Franchise Loan FAQs
How much does a Five Star Bath Solutions franchise cost?
The franchisor’s website lists an estimated initial investment of $162,000 to $333,500. Confirm the current range in Item 7 of the FDD.
What is the Five Star Bath Solutions franchise fee?
The website lists a $59,500 initial franchise fee, with 10% off for veterans.
What royalty does Five Star Bath Solutions charge?
The royalty and marketing fees are disclosed in Item 6 of the current FDD. Lenders deduct them from projected revenue when sizing a loan.
How much liquid capital do I need?
Net worth and liquidity requirements are not posted on the franchisor’s development page. Ask the franchise developer and plan for the equity injection a lender requires plus reserves.
Is Five Star Bath Solutions eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S0653 with no additional notes. Each borrower must still qualify.
Do I need remodeling experience?
No. The franchisor says no remodeling experience is required, and training covers sales, operations, product sourcing and installation.
Can I run it semi-absentee?
The franchisor lists semi-absentee owners among its ideal candidates. Lenders will want to see a strong manager and oversight plan.
Do I need a storefront?
No. The franchisor describes the business as home-based with no brick-and-mortar location required.
Can I buy an existing territory?
Yes, when one is for sale and the franchisor approves the transfer. Lenders will review the business’s historical financials.
Can I own more than one territory?
Yes. The franchisor says owners can expand into additional territories as demand grows.
Does the franchisor offer financing?
The franchisor’s website says financing is available through third-party lenders. Check Item 10 of the FDD for any direct franchisor financing.
How long is the franchise term?
Term, renewal and transfer conditions are in Item 17 of the FDD. Lenders generally prefer a term at least as long as the loan.
Final Thoughts
A Five Star Bath Solutions franchise loan is less about real estate and more about sales execution and cash flow. Owners who confirm every fee in the FDD, fund marketing and working capital properly and bring a clear sales plan to their lender give themselves the best chance at a smooth launch.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing options and our service contractor financing.
