Re-Bath is America's largest complete bathroom remodeling franchise, offering entrepreneurs a proven system in one of the most resilient segments of the home improvement industry. With total startup investments ranging from $276,300 to $609,625, securing the right financing is essential for first-time and multi-unit franchisees alike. This guide explains every financing option available to Re-Bath franchise owners and how Crestmont Capital helps you move from approved to open.
Re-Bath traces its roots to 1978, when its founders began manufacturing and installing bathtub liners and wall systems for the hotel and hospitality industry. What began as a solution for commercial bathroom upgrades evolved into a category-defining brand for residential remodeling. By 1991, Re-Bath expanded into the consumer market through a dealer network. Around 2010, the company transitioned to a full franchise model, enabling ambitious entrepreneurs to operate under a proven system backed by a national brand.
Today, Re-Bath is headquartered in Phoenix, Arizona, and operates as the nation's largest complete bathroom remodeling franchise. The brand holds more than 130 locations across 43 states, with ongoing expansion targeting 150-plus units nationwide. Franchisees deliver full bathroom remodels, tub and shower updates, walk-in accessibility upgrades, and aging-in-place solutions, all using Re-Bath's proprietary DuraBath acrylic and natural stone products alongside nationally recognized brand partners.
What distinguishes Re-Bath from standard remodeling contractors is its controlled process and proprietary product line. A typical Re-Bath project takes days rather than weeks, which drives strong customer satisfaction scores and repeat referrals. Unlike general contractors who rely on subcontractors, Re-Bath franchisees employ trained in-house crews, providing consistent results and quality control that support pricing power and customer trust.
The home improvement industry generated over $560 billion in 2023 according to the Harvard Joint Center for Housing Studies, with bathroom remodeling consistently ranking among the top projects homeowners undertake. Aging housing stock, millions of Baby Boomers seeking accessibility modifications, and steady millennial home buying are all macro forces fueling demand for exactly the services Re-Bath delivers. For franchisees who secure proper startup financing, the opportunity is substantial.
Re-Bath franchisees benefit from a nationally recognized brand, proprietary products, and a resilient market. The investment ranges from $276,300 to $609,625, making thoughtful financing planning a critical step before you sign your franchise agreement.
Understanding the full cost structure of a Re-Bath franchise is the foundation of any financing strategy. The Franchise Disclosure Document (FDD) provides the clearest picture of what franchisees need to budget. Here is a detailed look at the primary cost components:
The initial franchise fee for a Re-Bath unit is $50,000, paid in full upon signing the Franchise Agreement. This fee grants you the right to operate under the Re-Bath brand within a defined territory. For multi-unit developers who commit to opening multiple locations, Re-Bath may offer reduced fees for additional territories, making expansion financing especially strategic for qualified buyers.
Beyond the franchise fee, your total startup investment will fall somewhere between $276,300 and $609,625. This wide range reflects real variables: the size and quality of your showroom and warehouse, the number of vehicles in your initial fleet, the scope of your opening marketing campaign, and the working capital reserve you build for the first three months of operation.
Major investment categories typically include:
After opening, Re-Bath franchisees pay an ongoing royalty of 5% to 6% of gross revenues. A minimum royalty of approximately $575 per month applies during your first year. Franchisees also contribute 2% of the previous month's gross revenues to the brand's advertising fund. These obligations are important to include in your cash flow projections when determining how much working capital financing you need.
Source: Re-Bath FDD 2025. Investment ranges are estimates and may vary by market conditions.
Very few entrepreneurs have $276,000 to $610,000 in liquid savings available to fund a franchise from their personal accounts. Even those who do have the assets often make a deliberate choice to use financing rather than deplete cash reserves, because preserving liquidity protects the business during the unpredictable ramp-up period after opening.
There are several specific reasons why Re-Bath franchisees benefit from strategic financing:
Re-Bath operations depend on properly equipped installation vehicles. A new franchisee typically needs two to four wrapped vans or trucks at launch. Commercial vehicle costs range from $35,000 to $60,000 per unit, meaning fleet alone can consume $70,000 to $240,000 of your startup budget. Equipment financing isolates vehicle and tool costs at favorable rates, preserving working capital for other startup needs.
Re-Bath franchisees operate from showrooms where customers view DuraBath product samples and design their renovation packages. Building out or leasing a professional showroom involves significant upfront investment in fixtures, cabinetry displays, lighting, and signage. Tenant improvement loans and SBA 7(a) proceeds cover these one-time expenditures without putting pressure on monthly operating cash flow.
New franchise locations rarely achieve full revenue in the first few months. Payroll, marketing, insurance, and royalties continue regardless of sales volume. Experienced franchisees build a three-to-six-month working capital reserve into their launch plan, and a business line of credit is the most flexible tool for managing this cash gap.
Existing Re-Bath franchisees who want to add territories need additional capital for overlapping startup costs while their first location still has outstanding debt. Small business loans structured for franchise expansion allow established operators to grow without diluting equity or waiting years to accumulate sufficient retained earnings.
Crestmont Capital specializes in franchise financing with fast approvals and competitive rates. Get a free consultation today.
Get Pre-Qualified NowThe franchise financing landscape includes several distinct products, each suited to a different component of your Re-Bath startup or growth plan. Understanding these options helps you build a capital stack that minimizes cost while maximizing flexibility.
The SBA 7(a) loan program is the most widely used financing tool for franchise startups. Backed by the U.S. Small Business Administration, these loans allow qualified borrowers to finance up to $5 million with repayment terms of 10 years for working capital and up to 25 years for commercial real estate. Interest rates are variable and tied to the prime rate plus a lender spread.
Re-Bath is an eligible brand under the SBA's franchise registry, which streamlines the approval process. Approved SBA lenders do not need to independently evaluate the franchise system's viability, reducing paperwork and closing timelines. For a Re-Bath franchisee, SBA 7(a) funds can cover the franchise fee, showroom improvements, vehicle fleet, initial inventory, and working capital reserve under one loan structure.
The SBA 504 program is designed for franchisees who want to own their commercial real estate or purchase major fixed assets. A 504 loan splits the financing between a traditional lender (50%), a Certified Development Company (40%), and the borrower's down payment (10%). Rates on the CDC portion are fixed, providing predictable long-term costs for property-owning operators.
Re-Bath operations require a significant fleet of branded vehicles and professional installation tools. Equipment financing uses the purchased assets as collateral, eliminating the need for additional collateral pledges. Approval criteria focus on the useful life of the equipment, your credit profile, and business financials. Terms typically range from 24 to 84 months, and many lenders offer 100% financing with no down payment required for well-qualified borrowers.
Learn more about how equipment financing can cover your fleet and tools without drawing down your working capital reserve.
A revolving business line of credit is the most agile financing tool for managing day-to-day cash flow, seasonal fluctuations in demand, and unexpected expenses. You draw funds when needed and repay as cash comes in, paying interest only on outstanding balances. For Re-Bath franchisees, a line of credit is ideal for covering payroll between large job completions, stocking product inventory ahead of busy periods, or bridging a gap when a customer deposit has been collected but the job is not yet complete.
Conventional term loans from banks or alternative lenders provide a lump sum disbursement repaid over a fixed schedule with regular principal and interest payments. Term loans work well for defined capital needs like purchasing a second vehicle or funding leasehold improvements at a new location. Fast business loans from alternative lenders can be funded in as little as 24 to 48 hours, which is valuable when a time-sensitive acquisition or build-out opportunity arises.
Some Re-Bath franchisees use their 401(k) or IRA savings to fund startup costs through a ROBS arrangement. This allows you to invest retirement funds in your franchise without incurring early withdrawal penalties or taxes. While ROBS can reduce borrowing costs, this structure has compliance requirements and ongoing administrative demands. Most franchise financing advisors recommend working with a qualified ROBS provider and tax counsel before using this approach.
Most Re-Bath franchisees use a combination of SBA loan proceeds for startup costs and an equipment financing facility for their vehicle fleet. This layered approach maximizes leverage while keeping monthly debt service manageable during the ramp-up phase.
The Small Business Administration's loan programs are specifically designed to help entrepreneurs who may not qualify for conventional bank financing at favorable rates. Re-Bath franchisees benefit from SBA lending because the brand's established track record and FDD-disclosed financials give lenders confidence in the business model.
According to the SBA's 7(a) loan program guidelines, the maximum loan amount is $5 million, with terms of 10 years for working capital loans and 25 years for real estate. The SBA guarantees a portion of the loan (typically 75% to 85%), which reduces lender risk and allows you to access capital at lower rates than conventional alternatives.
Here is what Re-Bath franchisees should know about the SBA 7(a) process:
Request your Re-Bath franchise agreement and FDD as early as possible in the process. SBA lenders will want to review these documents, and having them ready reduces delays. Also prepare three years of personal tax returns, a personal financial statement, and a business plan with projected financials before your first lender conversation.
For a detailed walkthrough of SBA eligibility and the application process, visit our comprehensive resource on SBA loans for small businesses.
Re-Bath franchisees depend on reliable vehicles and professional-grade tools to execute bathroom remodels efficiently. Equipment financing is purpose-built for this need, offering several advantages over paying for equipment with working capital or folding equipment purchases into an SBA loan.
Key benefits of dedicated equipment financing for Re-Bath franchise owners include:
Typical equipment financing terms for Re-Bath operations:
Re-Bath franchisees frequently finance the following assets through equipment facilities: cargo vans and pickup trucks, DuraBath product inventory (when structured as inventory financing), professional installation tools, showroom display fixtures, and software subscriptions or technology systems.
Crestmont Capital works with franchise owners at every stage of their business journey, from pre-opening startup financing to multi-unit expansion capital. Unlike banks that evaluate a narrow slice of your financial profile, Crestmont takes a holistic approach, identifying the products and structures that match your specific situation and goals.
Here is what sets Crestmont Capital apart for Re-Bath franchisees:
Crestmont's lending advisors understand how franchise businesses are evaluated. They know what underwriters look for in a franchise loan application, how to present your FDD to SBA lenders, and which financing products best match the specific capital needs of a bathroom remodeling franchise. This industry knowledge shortens timelines and improves approval outcomes.
Crestmont is not limited to a single lender's products. Our network includes SBA preferred lenders, equipment financing companies, alternative term loan providers, and line-of-credit facilities. We match your financing needs to the right lender, often securing better rates and terms than you would find by approaching lenders independently.
Re-Bath franchise opportunities move quickly. Territory rights get claimed, and build-out timelines are fixed by lease agreements. Crestmont's streamlined application process and dedicated advisors keep your deal moving without unnecessary delays.
We explain every financing option in plain language, including the total cost of the loan, monthly payment obligations, and how each product affects your cash flow. There are no surprises at closing. Our goal is to help you build a financing structure that supports the business's long-term health, not just the immediate capital need.
If you are already operating a Re-Bath location and want to add territories, refinance existing debt, or access working capital to navigate a slow season, Crestmont has products for all of these scenarios. Growth financing is not just for new franchisees.
From franchise loan pre-qualification to funding, our team handles the complexity so you can focus on opening your doors.
Speak with a Franchise Loan AdvisorLenders evaluate Re-Bath franchise applications using a set of standard criteria. Understanding these requirements upfront allows you to address any gaps before they become obstacles in the approval process.
Most SBA lenders look for a personal credit score of 680 or higher. Some alternative lenders approve franchise loans with scores in the 640 to 679 range, though rates and terms will reflect the additional risk. Checking your credit report for errors and resolving any outstanding collections before applying is a worthwhile step that can meaningfully improve your financing options.
Lenders expect borrowers to have meaningful skin in the game. For a Re-Bath franchise, most lenders want to see that you can contribute 10% to 20% of the total project cost in cash or liquid assets. This injection can come from personal savings, a gift from an immediate family member, or proceeds from a documented asset sale.
While Re-Bath does not require prior remodeling experience, lenders look favorably on franchisees with management background, sales experience in home improvement or related industries, or proven success operating other businesses. A strong resume builds lender confidence in your ability to execute the business plan.
SBA lenders require a complete business plan with three-to-five-year financial projections. Re-Bath's corporate team provides tools and templates that can form the foundation of this document. Crestmont Capital's advisors can help you refine projections and present them in the format lenders prefer.
SBA and conventional lenders will take available collateral, which typically includes business assets and, when applicable, a lien on your primary residence or other real property. Lack of real estate does not automatically disqualify you, as lenders consider the overall strength of your application and the SBA guarantee.
If you are financing a second or third Re-Bath territory, lenders will want to see at least 12 to 24 months of operating history from your existing location, along with complete business tax returns and profit-and-loss statements. Strong revenue trends and consistent profitability significantly improve approval odds for expansion loans.
Getting started with Crestmont Capital is straightforward. Here is a step-by-step overview of what to expect:
From initial consultation to funded loan, the typical timeline for an SBA franchise loan is four to eight weeks. Equipment financing often closes in five to ten business days. Lines of credit can be approved and ready to draw in as little as three to five business days for well-qualified applicants.
Start your financing conversations before you sign your Re-Bath franchise agreement. Getting pre-qualified early means you understand your capital access before you commit to territory fees and development timelines. It also gives you leverage to negotiate better terms since you are not under time pressure.
Every franchisee's financial situation is different. The following scenarios illustrate how different financing structures can work for Re-Bath franchise owners at various stages.
Maria is a regional sales manager with 15 years of experience in home improvement products. She has $85,000 in personal savings and wants to open a Re-Bath location in a mid-size metro market with an estimated total project cost of $380,000.
Financing structure: $85,000 equity injection (22%) plus a $295,000 SBA 7(a) loan covering the franchise fee, showroom build-out, and working capital. A separate $35,000 equipment financing facility covers two vehicles. Monthly debt service totals approximately $3,400 combined. Maria's financial projections show break-even at month five based on comparable Re-Bath franchisee performance data.
James runs a three-person bathroom remodeling crew and wants to convert his existing operation to a Re-Bath franchise. He already has two vans, a showroom, and tools. His total investment need focuses on the $50,000 franchise fee, showroom upgrades, and marketing launch.
Financing structure: A $90,000 term loan funds the franchise fee, showroom improvements, and grand opening marketing. Lower total debt service means James can begin generating royalties and franchise performance fees quickly while keeping his personal capital intact for expansion.
Kevin has operated a Re-Bath franchise for three years with consistent profitability. He wants to add a second territory in an adjacent market with an estimated project cost of $320,000.
Financing structure: Kevin uses the equity built in his first location as additional collateral for a $260,000 SBA 7(a) expansion loan. A $60,000 equity injection comes from retained earnings in his existing business. The new territory benefits from Kevin's proven operational experience, which helps support strong projections for the lender. An equipment financing line adds flexibility to acquire additional vehicles as the new territory grows.
Diane wants to acquire an existing Re-Bath franchise from a retiring owner. The purchase price is $420,000, which includes customer goodwill, equipment, inventory, and territory rights.
Financing structure: An SBA 7(a) business acquisition loan covers the purchase price, with Diane contributing $84,000 (20%) from personal assets. Lenders typically look at existing cash flow from the acquisition target to assess repayment ability, making an established, revenue-generating franchise often easier to finance than a startup. Crestmont Capital's team has experience structuring franchise resale loans and can help buyers understand how to present acquired financials to lenders.
Tom's Re-Bath franchise in the upper Midwest experiences a predictable slowdown in November and December when homeowners delay remodeling decisions. His payroll and fixed costs continue, but revenue dips significantly.
Financing structure: A $75,000 revolving business line of credit allows Tom to draw funds during slow months and repay as first-quarter business picks up in the spring. The line costs nothing when not drawn, and Tom uses it proactively rather than scrambling for emergency capital when cash gets tight. This approach also helps him maintain his credit profile by avoiding missed payroll or late vendor payments. Learn more about how a business line of credit can smooth revenue gaps for service-based franchises.
Sandra's Re-Bath franchise opens in a high-competition market and needs an aggressive launch campaign to build awareness quickly. Her SBA loan already allocated $25,000 for marketing, but her territory has a larger addressable market that justifies additional investment.
Financing structure: A $40,000 short-term business loan funds digital advertising, local events, and partnership promotions for the first six months. Accelerated market penetration generates revenue that covers loan repayment within the loan's 12-month term, and Sandra's franchise achieves profitability ahead of her original projections.
If you are exploring franchise financing across multiple brands or want to understand how Re-Bath compares to other home improvement franchises in terms of investment and financing needs, the following resources may be helpful:
The total investment for a Re-Bath franchise ranges from approximately $276,300 to $609,625, including the $50,000 initial franchise fee, showroom setup, vehicle fleet, equipment, working capital, and other startup expenses. The wide range reflects variables like market size, showroom scale, and initial fleet size.
Can I get an SBA loan to finance a Re-Bath franchise?Yes. Re-Bath is an established franchise brand, and SBA lenders are familiar with the system. SBA 7(a) loans are the most common financing vehicle for Re-Bath startups. They offer competitive rates, long repayment terms, and the ability to finance multiple startup costs under one loan agreement. Most applicants need a minimum credit score of 680 and a 10% to 20% equity injection.
What credit score do I need to finance a Re-Bath franchise?SBA lenders typically look for a personal credit score of 680 or higher for franchise loans. Scores in the 640 to 679 range may still qualify with alternative lenders, though at higher rates. The stronger your credit score, the more favorable your loan terms will be. If your score is below 680, working with a credit advisor to improve it before applying can save significant money over the loan's lifetime.
How much cash do I need to bring to a Re-Bath franchise loan?Most SBA lenders require a 10% to 20% equity injection. For a total project cost of $400,000, that means you need $40,000 to $80,000 in liquid funds. This injection can come from personal savings, gifted funds from a family member, or proceeds from a recent asset sale. You should not deplete all of your savings as the equity injection; retaining personal liquid reserves protects you during the business ramp-up period.
How long does it take to get a franchise loan approved?SBA loan approvals typically take four to eight weeks from application submission to funding. Working with an experienced franchise lending broker like Crestmont Capital and a preferred SBA lender can reduce this timeline to three to four weeks in some cases. Equipment financing often closes in five to ten business days, and business lines of credit can be approved and ready to use in as few as three to five business days.
Can I finance a Re-Bath vehicle fleet separately from my startup loan?Yes, and this is often the recommended approach. Using a dedicated equipment financing or commercial vehicle loan for your fleet preserves a greater portion of your SBA loan proceeds for working capital and leasehold improvements. Equipment financing uses the vehicles as collateral, typically closes faster than SBA loans, and may offer favorable rates for late-model vehicles with high utility value.
What are Re-Bath's ongoing royalty fees, and how do they affect my loan repayment ability?Re-Bath franchisees pay a royalty of 5% to 6% of gross revenues plus a 2% contribution to the brand's advertising fund. When building your financial projections for a loan application, you must include these obligations in your operating expense calculations. Lenders evaluate whether projected revenues are sufficient to cover all fixed costs, including loan principal and interest, royalties, payroll, and overhead, and still provide adequate profit margin.
Can I use a HELOC to fund part of my Re-Bath franchise investment?Yes. A home equity line of credit (HELOC) can be used to fund your equity injection or supplement other financing. However, using home equity for a business investment carries risk, as your home serves as collateral. Most financial advisors recommend limiting HELOC use for franchise investment to a portion of the required injection rather than relying on it as the primary funding source.
Does Re-Bath offer financing to its franchisees directly?Re-Bath's corporate team may be able to point franchisees toward preferred lenders who are familiar with the brand, but Re-Bath itself does not typically serve as a direct lender. Most franchisees secure financing through independent lenders, SBA-approved financial institutions, or franchise lending specialists like Crestmont Capital, who have relationships with multiple lending sources.
What documents will I need for a Re-Bath franchise loan application?Standard documentation for a franchise loan application includes two to three years of personal federal tax returns, a completed personal financial statement, a business plan with three-to-five-year financial projections, the executed franchise agreement and FDD, a copy of your resume or biography summarizing relevant experience, and business bank statements if you have an existing business. Having these documents organized and readily available significantly speeds the approval process.
Can I get a loan to buy an existing Re-Bath franchise from a retiring owner?Yes. SBA 7(a) loans can be used for franchise business acquisitions. Lenders will evaluate the existing franchise's revenue history, profitability, asset values, and customer goodwill in addition to your personal financial profile. Acquisitions of profitable, established franchises often qualify at favorable terms because the cash flow record reduces lender uncertainty compared to a startup with projected financials.
What is a business line of credit, and how would it help my Re-Bath franchise?A business line of credit is a revolving credit facility that allows you to draw funds up to an approved limit and repay as cash becomes available. For Re-Bath franchisees, a line of credit is valuable for managing cash flow gaps between job completions, covering payroll during seasonally slow periods, purchasing product inventory before a surge in demand, or bridging the gap when a customer deposit has been received but the project is not yet invoiced.
Is the bathroom remodeling industry a good market for franchising?The bathroom remodeling market has consistently demonstrated resilience through economic cycles, driven by aging housing stock, demographic shifts toward aging-in-place modifications, and the emotional importance homeowners place on bathroom quality. The Harvard Joint Center for Housing Studies reports that home improvement spending exceeded $560 billion in 2023, with bathroom projects among the most common categories. Re-Bath's national brand recognition and proprietary product line position it well to capture ongoing demand in this market.
How does Crestmont Capital differ from a bank for franchise financing?Banks offer limited products and assess every application through their own internal criteria, which can result in slower turnaround times and less flexibility for franchise-specific needs. Crestmont Capital works with a broad network of lenders, matching your profile to the source best suited to your needs. We manage the application process actively, advocate on your behalf, and have franchise-specific experience that helps us anticipate and resolve issues that might slow down or derail a bank approval.
Can I get financing for marketing costs after opening my Re-Bath franchise?Yes. Marketing loans and business lines of credit can be used for advertising campaigns, digital marketing, local events, and other customer acquisition activities after your franchise is open. While your SBA loan likely included a marketing budget, additional capital for a targeted campaign to accelerate growth or enter a new zip code within your territory is a legitimate use for a term loan or line draw.
Crestmont Capital's franchise lending team is ready to help you secure the capital you need to open your Re-Bath location and build a successful remodeling business.
Apply Now - Free ConsultationYou can also explore related franchise financing guides on our blog: see how we help Mosquito Shield franchise owners access capital for their home services operations, or learn about the financing landscape for Salsarita's Fresh Mexican Grill franchisees.
Disclaimer: The information provided in this article is for general educational purposes only and does not constitute financial, legal, or investment advice. Loan amounts, terms, rates, and qualification requirements vary by lender and individual circumstances. Franchise investment figures are estimates based on publicly available FDD disclosures and may change. Always consult with qualified financial and legal advisors before making financing or investment decisions. Crestmont Capital is not affiliated with Re-Bath or its corporate parent.