Bath Fitter costs $100K–$200K. Re-Bath runs $150K–$350K. And you're still paying royalties on every job you close. Here's the real math — and the complete playbook for starting your own remodeling business without handing your margins to a franchisor.
Kitchen and bath remodeling sits at the top of the home service pyramid. Average kitchen remodel: $15,000–$50,000. Average bathroom remodel: $8,000–$25,000. High-end projects — master bath additions, full kitchen gut-and-remodels — routinely hit $75,000–$150,000. By comparison, the average lawn care job is $75. The average house cleaning is $150. Remodeling is where the real money is.
And because the projects are large-ticket, local, and referral-driven, remodeling is also the sector where the franchise model makes the least sense. You're not selling a commodity with a national brand advantage. You're selling craftsmanship, trust, and local reputation. Every single thing that makes remodeling work as a business is local — and none of it requires a $200,000 franchise fee to access.
Yet Bath Fitter, Re-Bath, Kitchen Tune-Up, and DreamMaker Bath & Kitchen collectively pull in hundreds of millions of dollars annually from franchisees who believe the brand name will do work that, in this industry, your portfolio and your Google reviews will do better. And for free.
This article is going to give you the real numbers on every major remodeling franchise, explain exactly why the model doesn't translate well to this vertical, and then walk you through the complete playbook for launching a kitchen or bath remodeling business independently — with better margins, full brand ownership, and no one taking a percentage of your revenue forever.
Already know you want the independent route? Use our free Kitchen Remodel Cost Estimator and Bathroom Remodel Cost Calculator to understand your market's pricing, then skip ahead to the startup playbook below.
Let's look at what you actually pay — not the marketing pitch, but what's in the Franchise Disclosure Documents (FDDs). Every franchise is required by the FTC to publish this data. Most people don't read it. You should.
| Franchise | Initial Investment Range | Franchise Fee | Royalty Rate | Marketing Fee | Territory | What You Actually Get |
|---|---|---|---|---|---|---|
| Bath Fitter | $100,000 – $200,000 | $30,000 – $50,000 | 5–8% of gross revenue | 1–2% of gross revenue | Exclusive territory, typically 100,000–300,000 population | Proprietary acrylic liner system, installation training, brand name. Must use Bath Fitter products — no competitive sourcing. |
| Re-Bath | $150,000 – $350,000 | $45,000 – $65,000 | 5–7% of gross revenue | 2% of gross revenue | Protected territory by zip code | Bath remodel systems, product training, national brand. Heavy reliance on proprietary Re-Bath products — locks you into their supply chain and pricing. |
| Kitchen Tune-Up | $100,000 – $200,000 | $44,900 – $59,900 | 7% of gross revenue | 2% of gross revenue | Territory by population or geography | Cabinet refacing and update systems, 5-day kitchen transformation process, national brand. Strong training program; limited to their specific remodeling niche (not full gut remodels). |
| DreamMaker Bath & Kitchen | $150,000 – $300,000 | $44,500 – $57,000 | 7–9% of gross revenue | 2% of gross revenue | Territory-based, exclusive | Full kitchen and bath remodeling platform, strong faith-based company culture, operations and marketing systems. Comprehensive but among the highest ongoing fee burdens in the segment. |
Let's model what a bath remodeling franchise (roughly Re-Bath tier) costs over five years, assuming a mid-range franchisee doing $600,000 in annual gross revenue — a reasonable number for an established single-territory operation:
| Cost Category | Year 1 | Years 2–5 (combined) | 5-Year Total |
|---|---|---|---|
| Initial investment (midpoint) | $250,000 | — | $250,000 |
| Royalties (6% of $600K) | $36,000 | $144,000 | $180,000 |
| Marketing fees (2% of $600K) | $12,000 | $48,000 | $60,000 |
| Technology & support fees | $6,000 | $24,000 | $30,000 |
| Franchise renewal / transfer fees | — | $10,000–$25,000 | $15,000 |
| Total franchisor payments | $304,000 | $226,000–$241,000 | $535,000 |
Half a million dollars in fees — on a business grossing $600K per year. And you still don't own the brand. You're renting it. When you sell the business, the franchisor has to approve the buyer. When the territory deal changes, you're subject to renegotiation. When the franchise system evolves, you comply or you're out.
Quick math check: At $600K revenue with 35% gross margins, you're generating $210,000 in gross profit annually. Royalties and marketing fees alone eat $48,000 of that — roughly 23% of your gross profit, straight out the door, every year, forever. That's the deal.
Franchises make more sense in some industries than others. They work reasonably well for fast food (national brand recognition drives foot traffic), car repair (ASE certification and warranty backing matter), and certain cleaning services where consistency is the promise. In remodeling, the franchise model runs into structural problems that make it a worse deal here than almost anywhere else in home services.
Homeowners don't choose a remodeler because they've seen a national TV ad. They choose you because their neighbor raved about you, because you showed up and gave a professional estimate, because your portfolio on Houzz or Google shows 47 gorgeous finished projects in their neighborhood. The referral-and-portfolio flywheel is hyperlocal. A national brand name adds essentially zero velocity to it.
Compare this to, say, Subway. Travelers on a highway exit recognize the brand and stop. That's brand value doing real work. In remodeling, the equivalent of brand recognition is the 5-star Google Business Profile with photos of real kitchens you've actually built in someone's market. That takes two years of good work to build — not $200,000.
Kitchen and bath remodeling operates at gross margins of roughly 30–45%, depending on your labor model. After subs, materials, project management overhead, and marketing, you're working with a net margin of 15–25% in a well-run operation. That's respectable, but it's not like running a software company.
When a franchise takes 6–9% of gross revenue off the top, they're eating 15–30% of your net profit. Not gross — net. You do the hard work, bear the risk, manage the subs, handle the client stress, and then hand over a quarter of your profit to a franchisor who isn't in the job with you. There is no logical version of this math that makes sense for a remodeling business owner who has any other option.
Bath Fitter and Re-Bath both require franchisees to use their proprietary product systems. This sounds like "premium quality assurance" in the sales pitch. In practice, it means you can't negotiate your own supplier relationships, can't take advantage of regional pricing, and can't differentiate your material offering from every other franchisee in the system.
An independent remodeler builds direct relationships with tile suppliers, cabinet dealers, countertop fabricators, plumbing suppliers, and appliance distributors. Over time, those relationships become a competitive moat — better pricing, priority lead times, exclusive products. A franchise locks you out of all of it.
Most remodeling franchises give you an "exclusive" territory. Sounds protective. In reality, it means you can't follow your best customers to their lake house in the next county, can't take referrals that fall outside your borders, and may be prohibited from expanding even when demand clearly exists. You've built the business, trained the crews, developed the reputation — and a line on a map tells you how far it can grow.
Independent operators grow to fill demand. If your crews are excellent and word spreads, you expand. No permission required, no additional franchise fees, no territorial negotiation. The business scales with your ambition, not with a corporate approval process.
Franchise training programs are typically 1–2 weeks. They teach you how to use their systems, install their products, and follow their processes. That's legitimately useful if you're brand new to the trade and have zero other options.
But if you're willing to spend six weeks consuming free and low-cost resources — YouTube master classes on estimating, NARI workshops, NKBA certification programs, apprenticing under an established remodeler — you can acquire equivalent or better knowledge without paying a $50,000 franchise fee for the privilege. The training premium in this industry is priced like a luxury car and delivers like a used Honda.
Here's exactly how you build a legitimate, professional remodeling business from scratch — without a franchise. These are the eight steps that matter, in the order they matter.
Most states require a general contractor license or a home improvement contractor license to legally perform kitchen and bath remodeling. Projects that involve plumbing, electrical, or structural work typically also require licensed subcontractors for those specific trades, even when you hold a GC license.
The licensing process varies widely by state. California's CSLB exam requires 4 years of journeyman-level experience. Florida's state exam covers business, finance, and trade knowledge. Texas operates through local jurisdictions. Budget 60–120 days and $200–$2,000 for the licensing process. Check your state's contractor licensing board website directly — NASCLA (National Association of State Contractors Licensing Agencies) maintains a directory at nascla.org.
Also required before you start: general liability insurance ($1M–$2M policy), workers' comp if you have employees, and a contractor bond in most states. Total annual insurance cost: $2,500–$6,000 for a solo operator. Skipping this is not an option — one lawsuit without insurance ends the business.
Kitchen and bath remodeling is broad. The most successful independent startups pick a defined niche for their first 12–24 months, become known for it, and expand from there. Here are the main options:
For a startup, cabinet refacing or bath remodels are the best entry points: manageable project complexity, faster cash cycles, and easier to build a portfolio quickly. Add full kitchen remodels once you've got your subcontractor network dialed in.
Let's be direct: in kitchen and bath remodeling, the general contractor's job is to sell the project, design it, manage the timeline, and coordinate the subs. The plumber, electrician, tile setter, cabinet installer, and countertop fabricator do the physical work. Your subcontractor network is your product.
How to build it fast:
Your goal is 2–3 reliable subs in each trade. Don't rely on one — projects stall, people get busy, and you need a backup. Pay quickly and communicate clearly, and good subs will prioritize your jobs.
The number-one skill in remodeling isn't carpentry or tile work. It's knowing — precisely — what a project will cost before you commit to a price. Chronic underestimating is the fastest way to destroy a remodeling business: you land jobs, do great work, and lose money on every one.
Build your estimating process around these principles:
Every major remodeling franchise uses showroom-based selling as a differentiator. And yes, a beautiful showroom closes deals. But it also costs $3,000–$8,000/month in lease before you've built a single project.
For a startup, the math is simple: a showroom is a fixed cost you're paying whether or not you have jobs. Before you've established consistent lead flow and cash cycle, that fixed cost will drown you.
The no-showroom alternative:
Add a modest showroom (or partner space with a supplier) after you're consistently hitting $500K+ in annual revenue and have the cash flow to support the overhead.
Your supplier relationships determine your margins as much as your labor rates do. Here's how to build them right:
Remodeling marketing has one core truth: nothing sells better than a beautiful transformation photo in a local homeowner's feed. The entire marketing strategy flows from this.
This is the most underused tool in independent remodeling, and it's one of the legitimate advantages franchise systems often provide. Here's the independent version:
The average homeowner wants a $30,000 kitchen remodel but has $15,000 in savings. Without financing, you lose the sale or you shrink the scope. With financing options available at the point of estimate, you close the full project — and often upsell.
Let's build a realistic revenue model for an independent kitchen and bath remodeling business at two stages: Year 1–2 (solo operator with subs) and Year 3–5 (small team).
| Project Type | Avg. Revenue | Projects/Year | Annual Revenue | Est. Gross Margin | Gross Profit |
|---|---|---|---|---|---|
| Full kitchen remodels | $35,000 | 8 | $280,000 | 38% | $106,400 |
| Full bath remodels | $15,000 | 12 | $180,000 | 42% | $75,600 |
| Cabinet refacing / updates | $10,000 | 10 | $100,000 | 45% | $45,000 |
| Year 1–2 Total | 30 projects | $560,000 | 40% | $227,000 |
After your own salary/draw, marketing, insurance, software, and overhead, expect net income of $90,000–$140,000 in year 2. That's with zero franchise fees, zero royalties, and complete ownership of your brand and client relationships.
| Scenario | Annual Revenue | Gross Margin | Gross Profit | Est. Net Profit |
|---|---|---|---|---|
| Conservative (2 crews) | $800,000 | 37% | $296,000 | $100,000–$130,000 |
| Mid-range (3–4 crews) | $1,200,000 | 35% | $420,000 | $160,000–$200,000 |
| Strong operator (4–5 crews) | $1,800,000 | 33% | $594,000 | $220,000–$290,000 |
Franchise comparison check: A Re-Bath franchisee at $1.2M revenue pays roughly $84,000/year in royalties and marketing fees alone. An independent operator at the same revenue keeps that $84,000. Over five years, that's $420,000 in additional profit — enough to buy the competitor franchise's territory outright, twice over.
We've built free calculators specifically for kitchen and bath remodeling operators. Use them to validate your pricing, set client expectations, and win more estimates:
These tools are free and require no registration. Bookmark them for client consultations.
A Bath Fitter franchise typically costs between $100,000 and $200,000 to start, including the franchise fee ($30,000–$50,000), equipment, initial inventory, and working capital. On top of that, franchisees pay ongoing royalties of 5–8% of gross revenue plus mandatory marketing fees. Over five years, a Bath Fitter franchise owner doing $500K annually can expect to pay $250,000–$400,000+ in total franchisor fees and initial investment costs.
Re-Bath franchise costs range from $150,000 to $350,000 in initial investment, depending on territory size and market. The franchise fee alone is $45,000–$65,000. Franchisees pay a royalty of approximately 5–7% of gross revenue and are required to use Re-Bath's proprietary products, which limits their ability to source materials competitively. The total 5-year cost of ownership for an average Re-Bath franchisee can exceed $500,000 when you factor in royalties, marketing fees, and required product purchases.
It depends on the state and scope of work. Most states require a general contractor license or a specialized home improvement contractor license for kitchen and bath remodeling. Projects involving plumbing or electrical almost always require licensed subcontractors even if you hold a general contractor license. Before starting, check your state's contractor licensing board requirements — the process typically takes 60–120 days and costs $200–$2,000 depending on the state.
A solo remodeling contractor managing subcontractors can realistically generate $250,000–$500,000 in annual revenue in their first 2–3 years, with gross margins of 30–45% and net profit margins of 15–25% after overhead. A small operation with 2–3 crews can scale to $750,000–$1.5M annually. Because kitchen and bath projects average $15,000–$50,000 (kitchen) and $8,000–$25,000 (bath), you only need 20–30 projects per year to build a solid six-figure income — without paying a penny in royalties.
Kitchen Tune-Up franchises cost $100,000–$200,000 to start and require ongoing royalties of 7% plus 2% in marketing fees. As a franchisee, you're restricted to their product lines, territories, and brand standards. Starting independently, you can launch for $15,000–$30,000, build your own brand, source materials from any supplier (often at better prices), and keep 100% of your margins. The franchise gives you a brand name and initial training — but in remodeling, the brand matters far less than your local reputation and portfolio.
No — and for most startups, a showroom is a liability before it's an asset. Showroom leases run $3,000–$8,000/month before you've built a single project. Most successful independent remodelers start by meeting clients in their homes and using supplier showrooms (tile stores, cabinet dealers) for material selection. Add a modest showroom only after you're consistently doing $500K+ in annual revenue and have established supplier relationships that make the space cost-effective.
The kitchen and bath remodeling market generates over $400 billion in annual spend in the United States. The average project is high-ticket, referral-driven, and won by local reputation — not by a franchise brand name that costs $200,000 to rent. The independent operator who builds a portfolio, earns five-star reviews, and develops strong sub and supplier relationships will beat the local franchise unit on margin, flexibility, and long-term business value almost every time.
The question isn't whether you can compete without a franchise. You can. The question is whether you'll do it with the right systems — or wing it and learn expensive lessons about estimating, subcontractor management, and project cash flow that the franchise training would have covered.
Here's the move:
Kitchen and bath remodeling is one of the best businesses you can build in 2026. High tickets, high repeat, high referral, and a local market that never goes online. Do it right. Do it independent. Keep your margins.
Your craft. Your brand. Your equity. No royalties.
The Kitchen & Bath Remodeling Startup Checklist covers licensing, insurance, sub recruitment, first estimate setup, and your first 30 days. Free. No email required.
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