$46

Business Description

ReBath, LLC is a Delaware limited liability company that was formed on December 18, 2001. Our principal address is 426 N. 44th Street, Suite 410, Phoenix, Arizona 85008. Our agents for service of process are disclosed in Exhibit A. We conduct business under the name Re-Bath®. We and our predecessors have offered Re-Bath® franchises since 1991. Since 2018, we have also operated ReBath businesses that are substantially similar to the Franchised Businesses offered under this Disclosure Document. We have not offered any other franchises in any other line of business. We do not conduct any other business activities other than operating ReBath businesses, selling and supporting Franchised Businesses, and marketing and selling Re-Bath® products. Our ultimate parent company is Home Brands Group Holdings, Inc. (“HBG Holdings”), a Delaware corporation. In April 2014, HBG Holdings changed its name from AmBath/ReBath Holdings, Inc. as part of a corporate restructuring. HBG Holdings has 2 direct subsidiaries, our parent company, Home Brands Group, LLC (“HBG”), and our affiliate, Agile Building Solutions, LLC (“Agile”). The principal business address of our affiliates is 426 N. 44th Street, Suite 410, Phoenix, Arizona 85008.

Prior Experience

HBG Holdings guarantees the performance of our obligations under franchise agreements. HBG Holdings has not offered franchises in any line of business. HBG may negotiate purchasing arrangements for certain cabinets, lighting and other products used in the Franchised Business to Re-Bath® franchisees. See Item 8. HBG has not offered franchises in any line of business. Agile manufactures and sources remodeling products for us and third parties. We resell to you certain bathroom remodeling products manufactured or sourced by Agile. Agile has not offered franchises in any line of business.

Business Offered

We offer a Re-Bath® franchise under an agreement (“Franchise Agreement”) that gives you the right to use our Marks and our distinctive business format, systems, methods, procedures, designs, standards and specifications (“System”) to operate a business that offers and sells single-family residential bathroom remodeling services and related products (the “Franchised Business”) in a specific geographic area (“Protected Territory”). The System is described in our confidential Manual (the “Manual”), which includes the System Manual, and other written documents. You must comply with certain specifications in the Manual, but the Manual also contains recommended procedures and tools for you to consider in the operation of your Franchised Business. As a Re-Bath® franchise, you will offer three project solutions: (i) a complete bathroom remodel, (ii) tub and shower updates, and (iii) aging and accessibility solutions. You will offer free in- home consultation where you will work with the customer to design their new bathroom. From there you will remove the old bathroom products and install the new products. You will offer a one-stop solution for the customer's bathroom remodeling needs. Re-Bath® is one of the nation's largest bathroom remodeling companies and is the only nationwide company that offers complete bathroom remodeling services. We provide you the training and tools you need to do these things through a comprehensive onboarding process and by providing you our comprehensive Manual and on-going training throughout the term of your Franchise Agreement. We or our affiliates manufacture some of the products you need for the job. The other products are sourced through preferred vendors with whom we have established relationships. The products we offer include everything from bathtubs, walk-in tubs, and showers, to faucets, fixtures, flooring, lighting, vanities, countertops, wall surrounds and a variety of bath accessories (grab bars, towel holders, robe hooks, etc.). As a Re-Bath® franchisee, you will operate the Franchised Business from a showroom, office, and warehouse located in the Protected Territory. You will offer these bathroom remodeling services and products to home owners and landlords of single-family dwellings located in the Protected Territory. You will operate the Franchised Business under ReBath, LLC's national brand—the RE-BATH® trademark and logo— as well as its additional principal service marks, trademarks, logos, emblems, and slogans (“Marks”). As a Re-Bath® franchisee, we provide you with training, tools and support across each of our System Modules: Marketing, Sales, Product & Installation, Customer Service, and Office Management. Item 11 details the support we currently provide. We are continually developing and improving our System to provide opportunities to grow your business, and may change the System from time to time, including, for example, offering new or different products and services, and using new or different methods, procedures, and standards. We currently negotiate agreements with certain nationwide retailers and distributors (“National Accounts”), such as Home Depot, to offer our franchisees' products and services to their customers. Although our current policy is to offer franchisees the opportunity to participate in National Accounts, we may, at our option, modify, suspend, or repeal our National Account program at any time, and/or modify, suspend, or repeal our consent to allow a franchisee, or all franchisees, to service National Accounts. Item 12 provides additional detail on our National Account opportunities.

Initial Fees

Initial Franchise Fee You may acquire a Re-Bath franchise with an initial (and renewable) term of ten (10) years for an Initial Franchise Fee of $35,000 for a population within the Protected Territory that may range from 750,000 to 1,250,000 people (the “Initial Franchise Fee”). We may, however, offer larger or smaller Protected Territories and charge an Initial Franchise Fee that is adjusted accordingly. The Initial Franchise Fee is paid in full when you sign the Franchise Agreement. If you enter into one or more additional Franchise Agreements at the same time that you enter into the initial Franchise Agreement, the Initial Franchise Fee for each additional Franchise Agreement will be $10,000. The Initial Franchise Fee is fully earned when received by us and is non-refundable. Except as described above, all franchisees pay the same Initial Franchise Fee. Initial Training Fees The cost of training is covered by your Initial Franchisee Fee for a certain number of attendees as outlined in more detail below. Initial training is conducted intermittently during the period following execution of the Franchise Agreement and the opening of your franchise. The first training session usually begins within 30 days of signing the Franchise Agreement with the Operating Owner and/or Manager. In this training we assist you with your business plan, marketing plan and opening timeline (the “Business Plan Training”). The Business Plan Training will be conducted remotely via phone calls, email and screen shares, as needed. The charge for this Business Plan Training is included in your Initial Franchise Fee. Typically, within 4-6 weeks prior to the opening of your franchise, you will participate in in- depth training on our sales program and tools (“Sales Training”). This training takes place both remotely and at our headquarters in Phoenix, Arizona. The Operating Owner and/or Manager, along with the individual responsible for managing sales if they are different, may be required to participate in this training. Approximately two weeks prior to coming to Phoenix, AZ, you will be assigned pre-work that includes memorization of our sales script. Following the conclusion of that pre-work, you will come to Phoenix, AZ for one week where you will participate in hands-on, live training including role play. The fees for System Training for two attendees are included in your Initial Franchise Fee. We may charge $495 for each additional attendee you wish to send to Sales Training. Typically, within 2-4 weeks prior to the opening of your franchise, you will participate in in- depth training on the installation of our product offering (“Installation Training”). This training takes place both remotely and at our headquarters in Phoenix, Arizona. The Operating Owner and/or Manager, along with the individual responsible for managing installation if they are different, may be required to participate in this training. In the week prior to coming to Phoenix, Arizona, you will be assigned pre- work that consists of watching videos and reviewing certain materials. Following the conclusion of that pre-work, you will come to Phoenix, Arizona for two weeks where you will participate in hands-on installation training at our manufacturing facility. The fees for Installation Training for two attendees are included in your Initial Franchise Fee. We may charge $1,800 for each additional attendee you wish to send to Installation Training. Finally, intermittently during the time following execution of the Franchise Agreement and the opening of your franchise, you will be trained on the other critical components of our System, which include, among other things, or marketing tools and programs, financial reporting, our CRM system and other software applications used to run your business (“Additional System Training'). This training will take place remotely via webinars, screen shares, and phone calls. The Operating Owner and/or Manager may be required to participate in this training. The fees for Additional System Training are included in your Initial Franchise Fee. You are responsible for travel-related and other expenses incurred by you and your employees to attend training in Phoenix, Arizona. All training fees are fully earned when received by us and are non- refundable. Initial Inventory and Supplies You must purchase supplies and inventory necessary to start your Franchised Business, some of which may be purchased from us or our affiliates. We do not specify a minimum amount of supplies and inventory that must be purchased from us or our affiliates prior to opening your Franchised Business. We estimate that you are likely to purchase between $2,000 and $5,000 of supplies and inventory from us or our affiliates prior to starting your Franchised Business. Any purchases that you make from us or our affiliates are non-refundable.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in this Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. Presented below are data for 87 of the 96 total Franchised Businesses (the “Item 19 Businesses”) that were open and operating as of December 31, 2018. Nine of the Franchised Businesses whose data is not presented in this Item 19 did not provide us with profit and loss statements validated by the franchisee for accuracy for the respective time period. The Item 19 Businesses do not differ materially from the Franchised Business offered under this Disclosure Document. The chart below reflects historic data collected for the 2018 calendar year. The chart is organized into 4 categories based on the size of the franchisee's Protected Territory. The 4 categories are as follows: • < 500,000 people • Between 500,000 and 1,249,999 people • Between 1,250,000 and 2,499,999 people • > 2,500,000 people Please carefully read all of the information in this Item 19, and all of the notes following the chart, in conjunction with your review of the historical data.