Plaintiff alleges Defendant franchisor engaged in deceptive practices

In a significant legal move, a New Hampshire-based franchisee has filed a lawsuit against its franchisor, alleging deceptive practices and breach of contract. The complaint was filed by Baths by Bill, LLC in the United States District Court for the District of Arizona on December 18, 2025, targeting ReBath, LLC. This case brings to light the tensions between franchisees and franchisors over business practices that allegedly prioritize corporate profit over fair franchisee treatment.

Baths by Bill, LLC accuses ReBath, LLC of engaging in a series of actions designed to inflate its market value artificially at the expense of its franchisees. According to the complaint, ReBath embarked on this scheme starting in 2022 as part of a strategy to prepare for a potential sale or refinancing deal with private equity investors. The plaintiff claims that ReBath’s tactics included unauthorized increases in technology fees by more than 300%, misappropriation of advertising funds contributed by franchisees, and imposing restrictive marketing agreements that hindered local promotional efforts. “Re-Bath’s misconduct includes unilaterally imposing unauthorized technology fee increases upon Plaintiff,” states the complaint.

The lawsuit details how ReBath allegedly manipulated revenue streams through inflated fees and restricted franchisee autonomy in marketing decisions. These actions were purportedly aimed at maximizing ReBath’s earnings before interest, taxes, depreciation, and amortization (EBITDA), thereby enhancing its attractiveness to potential buyers. Furthermore, Baths by Bill asserts that these practices violated both federal disclosure requirements under the Federal Trade Commission’s Franchise Rule and state consumer protection laws in Arizona and New Hampshire.

In response to these alleged violations, Baths by Bill is seeking multiple forms of relief from the court. They are asking for compensatory damages for losses incurred due to inflated fees and restricted business operations. Additionally, they seek treble damages under state consumer protection statutes and demand an accounting of all fees collected by ReBath from its franchisees. The plaintiff also requests declaratory judgments affirming their rights under the franchise agreement and an injunction preventing further imposition of unauthorized fees or restrictions.

Representing Baths by Bill are attorneys from Denton Peterson Dunn PLLC based in Mesa, Arizona—Jay Parmelee—and Zarco Einhorn Salkowski P.A., with Robert Zarco leading a team seeking pro hac vice admission from Miami, Florida. The case is presided over by Judge GMS under Case ID 2:25-cv-04785-GMS.