Franchise operating model
Five Star Bath Solutions is a territory-based bathroom-renovation service business. The local franchisee converts homeowner inquiries into in-home design consultations, booked projects, approved-product installation, final collection, and warranty service; Five Star Bath, LLC controls the brand, Operating Manual, technology, suppliers, marketing approvals, data access, and territory rules.
The franchisee owns the local sales-and-production operation: it acquires leads, conducts consultations, contracts with homeowners, schedules labor, orders approved materials, completes renovations, collects payment, and handles warranty obligations. Five Star Bath, LLC supplies the operating framework, routes certain leads, designates core vendors and software, reviews marketing, and audits execution.
What does a Five Star Bath Solutions franchise sell, and who buys it?
The unit sells approved residential bathroom-renovation projects to homeowners in its Franchise Territory. The menu centers on tub-to-shower conversions, shower or tub updates, full bathroom remodeling, and safe-bathing modifications; a local design consultation converts the inquiry into a quote.
Authorized customer promise
The franchisee may offer only approved products and services and must carry every item the franchisor designates as required. The public Five Star Bath Solutions service site presents renovation options rather than retail product-only sales.
How demand enters the unit
Homeowners can call, submit a web request, use the appointment-booking flow, or find a local operator through the location finder. The franchisee funds territory advertising and joins required brand campaigns and lead-generation programs.
Evidence basis: 2026 FDD, Items 1, 11, 12, and 16; Franchise Agreement §§ 1.1, 1.7–1.9, 2.3, and 5.1–5.2; official service, booking, and location pages.
How does a lead move from inquiry to completed bathroom project?
The verified cycle is lead intake, in-home consultation, proposal acceptance, material ordering and scheduling, installation, final collection, and warranty follow-up. Booking creates reporting and fee obligations before installation is completed.
Capture and route the inquiry
- Actor
- Brand website, Call Center, and local franchise team.
- Action
- Receive phone, web, chat, text, referral, or local-marketing leads and route the homeowner to the relevant Franchise Territory.
- System/asset
- Franchisor-controlled telephone number, call tracking, ProNexis or another designated vendor, and approved booking channels.
- Output
- A scheduled local design consultation.
Inspect, design, and quote
- Actor
- Franchisee salesperson, owner, manager, or trained representative.
- Action
- Inspect and measure the bathroom, check for moisture, demonstrate materials, develop the design, and present a project price.
- System/asset
- Approved estimating software, 3D design tools, samples, and the Five Star Bath Solutions sales process.
- Output
- A proposal the homeowner can accept, revise, or decline.
Book the project and record the sale
- Actor
- Franchisee sales and administration team.
- Action
- Document acceptance, execute the customer agreement, collect required payment, and enter the booked job in the operating system.
- System/asset
- ServiceMinder, proprietary estimating and reporting tools, approved payment method, and current price list.
- Output
- A reportable booked job that triggers Royalty Fee and National Marketing Fee processes.
Source materials and schedule production
- Actor
- Franchisee project manager or designated production personnel.
- Action
- Confirm scope, order approved wall systems and related inputs, coordinate storage or delivery, assign the installer, and schedule the job.
- System/asset
- Approved supplier list, ServiceMinder, warehouse or temporary storage, tools, samples, vehicle, and project records.
- Output
- A production-ready project with materials and labor aligned.
Install and control quality
- Actor
- Trained installer, employee crew, or franchisee-controlled contractor.
- Action
- Prepare the work area, install approved products to system specifications, and complete the quoted scope under applicable contractor and building rules.
- System/asset
- Approved products, tools, branded vehicle, installation training, permits, and the Five Star Bath Solutions Operating Manual.
- Output
- A completed bathroom project ready for homeowner acceptance.
Collect, report, and support the warranty
- Actor
- Franchisee administration and customer-service personnel.
- Action
- Confirm completion, collect the final amount, retain records, report results, and perform required warranty work tied to the installation.
- System/asset
- QuickBooks Online, required reporting systems, customer database, warranty procedures, and retained job documentation.
- Output
- A closed project, recorded revenue, and an ongoing service obligation.
The consumer-facing bathroom-remodeling process confirms the home inspection, moisture reading, design, and quote sequence. Contractual workflow basis: 2026 FDD, Items 6, 8, 11, 19; Franchise Agreement §§ 2.2–2.9, 5.1–5.2.
Who performs each operating function?
The franchisee is the employer, contractor manager, local seller, project operator, collector, and warranty obligor. Five Star Bath, LLC defines the Method of Operation and supervises compliance; affiliates and designated vendors supply lead, marketing, product, accounting, and software inputs.
- Hire and control employees, installers, salespeople, managers, and contractors.
- Conduct consultations, sell projects, schedule production, and collect customer payments.
- Obtain licenses and permits; manage jobsite safety and legal compliance.
- Fund approved local marketing, reporting, recordkeeping, and warranty service.
- Maintain the Five Star Bath Solutions System and amend its Operating Manual.
- Approve offerings, suppliers, marketing, premises, vehicles, and operating standards.
- Administer national marketing, lead routing, training, inspections, and audits.
- Access required systems, customer and order information, communications, and financial reports.
- ProNexis or another designated vendor: online leads, telephone numbers, tracking, Call Center, text, and chat.
- Five Star Marketing: required search-engine-optimization services.
- Luxury Bath and Sentrel Bath: currently approved bathroom wall-system supply.
- QuickBooks Online, designated bookkeeping, and required software support records and reporting.
Day-to-day owner participation is recommended, not contractually required. A trained Manager may run the unit, but the day-to-day operator and each manager or crew leader must complete required training. A corporation or limited liability company must employ a general manager. This permits manager-run operation; it does not represent passive ownership.
Evidence basis: 2026 FDD, Items 8, 11, and 15; Franchise Agreement §§ 2.10, 3.1–3.2, 5.1–5.2, and 6.7.
Which suppliers, technology, and assets are mandatory?
The model is supplier- and software-dependent. Five Star Bath, LLC sets specifications, designates suppliers, requires upgrades, and may inspect sources. The franchisee purchases local assets, maintains sufficient materials, and may submit an alternate supplier for approval.
The franchisee must use the provided telephone number and approved Call Center, call-tracking, online lead-generation, text, and chat services. The number and customer communications remain subject to franchisor control and routing.
ServiceMinder and the proprietary estimating and reporting environment record leads, quotes, booked projects, and operating data. Required hardware includes a laptop or tablet, cell phone, high-speed internet, compatible browser, mobile printing, and file storage.
QuickBooks Online and designated or approved bookkeeping support financial records. Five Star Bath, LLC receives viewing or direct-access rights, may request tax and operating reports, and may audit revenue, banking, and related records.
Luxury Bath and Sentrel Bath are the current approved bathroom wall-system sources. Equipment, inventory, logo-bearing items, marketing materials, signs, vehicles, tools, storage, and installation inputs must meet Operating Manual sourcing and specification rules.
An alternate source requires written approval. The franchisee must provide specifications or samples and pay testing costs when required. Five Star Bath, LLC states that it will decide within 30 days after receiving the request and may inspect the supplier as a condition of continued approval.
Evidence basis: 2026 FDD, Items 6, 8, and 11, pp. 21–46; Franchise Agreement §§ 2.4, 2.8–2.9, 5.1–5.3. The official franchise page also describes the home-based operating format and proprietary quoting support.
What does the franchisor control, and what remains with the franchisee?
Five Star Bath, LLC controls approved offerings, brand presentation, supplier qualification, required technology, customer-data access, marketing approval, territory exceptions, and quality review. The franchisee controls local execution within those boundaries: hiring, contractor use, scheduling, site selection, sales management, and most pricing decisions.
| Decision | Franchisor control | Franchisee responsibility | Local discretion |
|---|---|---|---|
| Offerings | Approves, requires, adds, or removes products and services. | Offer the required menu and follow warranty standards. | Match approved scope to each homeowner. |
| Suppliers | Designates sources, specifications, testing, and inspections. | Order, pay, store, and maintain approved inputs. | Propose an alternate source for approval. |
| People | Sets training and operating standards for managers and crews. | Hire, supervise, compensate, and control labor. | Choose employees or contractors subject to law and standards. |
| Pricing | May set lawful ceilings or allowable prices and pricing guidelines. | Maintain current price lists and honor effective prices. | Otherwise set local prices and sale terms. |
| Marketing | Approves creative, controls Internet presence, and administers brand campaigns. | Meet the Territory Marketing Requirement and report expenditures. | Select approved local media and execution mix. |
| Territory | Defines ZIP codes, approves exceptions, and reserves alternative channels. | Market, sell, and install inside the Franchise Territory. | Request Reserved Client or Operational Area consent. |
The Franchise Territory excludes another authorized Five Star Bath Solutions business while the agreement remains active and compliant, but protection is not absolute. Annual revenue targets affect protection; Reserved Client work may cross boundaries; Operational Areas are revocable; and Internet, national-account, catalog, telemarketing, and direct-marketing rights remain reserved.
Evidence basis: 2026 FDD, Items 8, 11, 12, and 16; Franchise Agreement §§ 1.1–1.9 and 5.1–5.2.
What does Item 20 show about the operating network?
Item 20 shows a nearly entirely franchised outlet base. End-of-year outlets increased from 176 in 2023 to 348 in 2025 while company-owned outlets remained at three, so the network depends primarily on franchisee-run territories rather than corporate stores.
Five Star Bath Solutions, U.S. and Canada combined; December 31 of each year
Interpretation: the total outlet count nearly doubled across the two-year period, but corporate ownership did not expand; 345 of 348 systemwide outlets at December 31, 2025 were franchised.
Source: Five Star Bath Solutions 2026 FDD, Item 20, Table 1, pp. 66–67. Counts are systemwide and include U.S. and Canadian outlets.
Which operating details still need direct verification?
The FDD establishes control structure but not every current Operating Manual instruction. A buyer should reconcile the contract with the live vendor list, required-role chart, local licensing rules, service standards, and software configuration for the specific Franchise Territory.
- Request the current required-software list, data integrations, user permissions, upgrade schedule, and responsibility for each subscription.
- Obtain the current approved-supplier list, wall-system ordering rules, freight arrangements, lead times, minimums, and substitution process.
- Confirm which sales, production, installation, customer-service, and administrative roles the current Operating Manual requires rather than merely recommends.
- Verify whether local installers are typically employees, independent contractors, or both, and which contractor licenses and permits apply in the territory.
- Map how Call Center, website, national-account, Reserved Client, and locally generated leads are assigned, transferred, measured, and retained.
- Review the current warranty program, response deadlines, documentation standards, remedial-work rules, and responsibility when a project changes ownership.
How should the model be understood in one view?
- Customer mechanism
- Homeowner inquiries become in-home consultations, accepted proposals, approved-material bathroom renovations, final collections, and warranty relationships.
- Core franchisee duty
- Coordinate local sales and production so the quoted project is installed, documented, collected, and serviced to the Five Star Bath Solutions standard.
- Strongest dependency
- Five Star Bath, LLC controls the Operating Manual, approved product sources, lead and communication vendors, required software, customer data, and compliance review.
- Critical distinction
- The Franchise Territory limits local selling and installation, while Internet and alternative-distribution rights remain reserved and cross-territory work requires specific approval paths.
- Largest open question
- The confidential Operating Manual—not the FDD—contains the current required-role structure, detailed service metrics, vendor configurations, and production procedures that determine day-to-day workload.
Official public operating references
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