Bath Tune-Up logo

Bath Tune-Up Franchise

Audited Financials
Home ServicesEst. 2020Aberdeen, SD
bathtune-up.com/
Financing Available

Risk Score

Pending analysis

Investment Range

$109,930 - $173,850

Franchise Fee

$16,958

Min Cash Required

$15,000

Total US Locations

48

Business Summary

BATH TUNE-UP® franchisees offer bathroom updates and full remodels, including the sale and installation of various fixtures, surrounds, and conversions. They also provide other home improvement and remodeling services such as flooring, general construction, plumbing, and electrical repairs. Franchisees use a motor vehicle with specified signage for sales calls and performing work, serving residential and commercial customers within their assigned territory.

Corporate History

BATH TUNE-UP® operates under the company HFC KTU LLC, which was organized in Delaware on December 7, 2020. The company began offering BATH TUNE-UP® franchises in 2021, initially to existing KITCHEN TUNE-UP® franchisees on more favorable terms. Although HFC KTU LLC also operates KITCHEN TUNE-UP®, the BATH TUNE-UP® brand itself did not have a direct predecessor. The predecessor entity, DCHFamily, Inc. (f/k/a KTUW Worldwide, Inc.), offered KITCHEN TUNE-UP® franchises from April 15, 1988, until December 31, 2020, when HFC KTU LLC acquired its assets. HFC KTU LLC is a subsidiary of Home Franchise Concepts, LLC (HFC), which is ultimately owned by JM Family Enterprises, Inc. (JMF).

Financial Overview

Investment Range

$109,930 - $173,850

Franchise Fee (Low)

$16,958

Franchise Fee (High)

$19,950

Minimum Cash Required

$15,000

Royalty %

7%

Marketing %

1%

Equipment Costs (Low)

$8,030

Equipment Costs (High)

$43,500

Working Capital

$20,000

Audited Financials

Yes

Offers Financing

Yes

Audit Opinion

Unqualified opinion

Financial Health Notes

BATH TUNE-UP® (operating as HFC KTU LLC) has received unqualified audit opinions for its financial statements for the years ended December 31, 2024, 2023, and 2022. This indicates that their financial statements are presented fairly in all material respects, in accordance with generally accepted accounting principles. The auditors specifically assessed whether there were conditions raising substantial doubt about the company's ability to continue as a going concern, and no such qualification was included in their opinion. The financial statements show positive net income for all three years presented.

Financing Details

BATH TUNE-UP® offers direct financing for a portion of the Initial Franchise Fee and the Initial Territory Fee. Franchisees can finance up to $36,000 with a $0 down payment. The loan term is 60 months, with an interest rate of 10% per annum, resulting in monthly payments of $764.89. There are no penalties for prepaying the loan. In case of default, franchisees risk losing their franchise and must pay the unpaid balance, plus attorney fees and costs. The loan is secured by substantially all of the franchisee's assets. BATH TUNE-UP® does not receive any direct or indirect payments or other consideration from any person for the placement of financing and does not guarantee any notes, leases, or obligations.

Performance Metrics

Total US Locations

48

Franchised Units

48

Corporate Units

0

Avg Square Footage

850

Franchising Since

2021

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, BATH TUNE-UP® franchisees must pay a renewal fee, sign the franchisor's then-current franchise agreement (which may have materially different terms), not be in default under their current agreement, and make any necessary upgrades to their franchised business to meet current standards. Franchisees must also attend and satisfactorily complete the franchisor's then-current Initial Training Program for new franchisees.

Training & Support Program

Franchisor Assistance

Before opening, BATH TUNE-UP® assists franchisees by designating their territory and allowing them to use the brand's trademarks. They provide an initial training program (combining virtual and in-person instruction) along with a 'Startup Package' and proprietary information for staff training, including electronic access to manuals. The franchisor also provides a list of standard equipment and suggested suppliers, and helps with initial pre-opening and post-opening promotions. A 12-week post-training program and launch team guide franchisees through opening activities. After opening, BATH TUNE-UP® polices its trademarks, offers additional training for new products/services, and makes representatives available for consultation during business hours. Additional on-site assistance can be requested for a fee. Franchisees are required to attend mandatory annual conventions. The franchisor maintains a website for the system and an electronic portal for digital assets, training, and communication. A monthly Technology Fee covers operating, upgrading, and supporting the franchisor's technology platforms, including a Customer Relations Management (CRM) System that franchisees must use for daily operations.

Initial Training Hours

187

Training Location

HFC Experience Center in Coppell, Texas, virtually, and at the franchisee's location.

Ongoing Support

After opening, BATH TUNE-UP® provides several forms of ongoing support. This includes policing trademarks, offering additional training for new products and services, and making representatives available for consultation and guidance during business hours. For an additional fee, on-site assistance can be provided upon request. Franchisees are required to attend mandatory annual conventions, and the franchisor assists with post-opening promotions and provides advertising information. BATH TUNE-UP® maintains a website listing franchisees and an electronic portal for digital assets, training, and communication. The franchisor may also provide or facilitate structured coaching, and charges a monthly Technology Fee for operating, upgrading, and supporting its technology platforms, including the Customer Relations Management (CRM) System, which franchisees are required to use for daily functions.

Franchise Requirements

Ideal Candidate Profile

BATH TUNE-UP® prefers franchisees who plan to participate actively in the direct operation and daily affairs of their franchised business, rather than those seeking a passive investment. If the franchisee chooses not to operate the business themselves, they must employ at least one full-time manager. This manager must successfully complete the initial training program and dedicate their entire time during normal business hours to the management, operation, and development of the franchised business. Additionally, if required by the state, the franchisee or their manager must qualify for and obtain a contractor's license.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Supervisory

Territory Type

Protected

Territory Size Requirements

BATH TUNE-UP® territories are defined by U.S. Postal Service ZIP Codes, and each territory typically starts with approximately 41,000 households. These ZIP codes will not change, even if their boundaries are altered or the population within them fluctuates.

Staffing Notes

BATH TUNE-UP® franchisees are responsible for hiring the full-time and part-time staff they deem necessary to operate their business properly. The franchisor and franchisee are not considered joint employers, meaning BATH TUNE-UP® does not determine employee wages, benefits, hours, duties, supervision, work rules, hiring, or firing. Franchisees are solely responsible for all essential terms and conditions of their employees' employment. If the owner does not personally operate the franchised business, they must employ at least one full-time manager who dedicates their entire time during normal business hours to its management and operation. Franchisees or their designated managers are responsible for training their staff, using the franchisor's confidential information and proprietary materials, adhering to confidentiality terms and conditions.