How the iconic home remodeling franchise is poised for growth
Bathroom remodeling franchises may be the closest an entrepreneur can get to an investing in a recession-proof industry. While the construction and retail home markets took major hits during the Great Recession and are still struggling to return to pre-recession levels of revenue, the Joint Center for Housing Studies of Harvard University reports that the remodeling industry at large was not only minimally affected by the Great Recession, but has stabilized much faster in its wake:
The U.S. housing stock of more than 130 million homes requires regular investment merely to offset normal depreciation. And many households that might have traded up to more desirable homes during the downturn decided instead to make improvements to their current homes. Meanwhile, federal and state stimulus programs encouraged homeowners and rental property owners to invest in energy-efficient upgrades that they might otherwise have deferred. Finally, many rental property owners, responding to a surge in demand from households either facing foreclosure or nervous about buying amid the housing market uncertainty, reinvested in their units. (JCHSHU, “Emerging Trends in the Remodeling Market,” 2015, pg.1)
Homeowners and property owners deciding to reinvest in their homes and buildings has meant that money is flying into the industry at a rate that bathroom remodelers and general contractors are struggling to keep with. Again, the Joint Center for Housing Studies of Harvard University reports that while the industry has significant long-term growth potential, the only hindrance to its growth might be a lack of labor as a result of the industry being dominated by small-time general contractors:
“Traditional dominance of small businesses in this industry has provided little opportunity for firms to develop skilled employees, which in turn has created a fear of a labor shortage as the market continues to recover,” the Joint Center for Housing Studies of Harvard University states in its annual report analyzing the “emerging trends in the remodeling industry.”
Home Remodeling Franchises: Why Re-Bath?
For nearly 40 years, Re-Bath has been at the forefront of innovation in the bathroom remodeling industry, setting the trends and blazing new trails while our fractured competition struggles to keep up.
With nearly 150 locations open or in development, Re-Bath is the world’s largest bathroom remodeling franchise, having remodeled millions of American bathrooms since our founding in 1979. As Re-Bath begins aggressive efforts to expand our territories, there are several reasons we are is a best-bet investment. Here are three of the top reasons you should own a Re-Bath remodel franchise:
1. Re-Bath doesn’t face significant competition.
“This is a very exciting time to be a part of Re-Bath,” says Jeremy Wallace, Director of Franchise Development with Re-Bath. “While there is significant competition in the lower third and upper third of the bathroom remodeling industry, we are entirely focused on going after the middle third segment of the market: those with incomes between $40,000 and $100,000. We are squarely targeting the middle and upper-middle class. This segment is almost entirely without competition, save for small-time contractors, and as of now there is no national brand that dominates this very lucrative portion of the industry. We are aggressively pursuing this segment and have comprehensive plans to become the dominant brand.”
2. We offer the best ongoing training and support in the industry.
Not only have we developed a product offering that will help us become the dominant bathroom franchise in the lucrative middle-class and upper-middle-class markets, we have also developed a training platform to ensure that our franchisees are running profitable businesses.
“We’ve been able to put systems in place to help our franchisees provide a uniform level of quality of service, and that has been critical to the success of our brand,” says Marty Rasmussen, President with Re-Bath. “The reason that our franchisees generate such strong annual revenue is because when they buy a bathroom remodeling franchise, we teach them how to run and grow the business. We have comprehensive training platforms, which go over in detail nearly every aspect of being a Re-Bath franchise owner — from hiring to training their employees to correctly and efficiently install our products.”
Our remodeling franchise system is rapidly expanding. We’re looking for savvy entrepreneurs who are passionate about the remodeling industry, as well as general contractors who want to diversify their existing businesses by adding additional revenue streams.
“Right now, we’re generating $175 million in annual revenue,” Marty says. “In the coming years, we fully expect to be generating $300 million to $400 million in revenue. With our innovative product offering and the lack of significant competition, we are well-positioned to actualize our goals.”