In a dramatic legal move, a Virginia-based construction company has taken on a well-known bathroom remodeling franchise, alleging serious breaches of contract and deceptive practices. On November 26, 2025, ARGS Construction Services, Inc. filed a complaint in the United States District Court for the District of Arizona against ReBath, LLC. The lawsuit accuses ReBath of engaging in unfair business practices that have financially harmed its franchisees.
The case unfolds with ARGS Construction Services claiming that ReBath initiated a scheme in 2022 to inflate its market value ahead of a potential sale or refinancing. This alleged scheme involved unauthorized increases in franchise fees and misappropriation of marketing funds, among other tactics. According to the complaint, “Re-Bath’s misconduct includes unilaterally imposing unauthorized technology fee increases upon Plaintiff which currently exceeds 480% of the fee historically charged by Re-Bath.” ARGS Construction further alleges that these actions were part of a broader strategy to maximize ReBath’s profitability at the expense of its franchisees’ contractual rights.
ARGS Construction Services details how it entered into a Franchise Agreement with ReBath on August 8, 2022. However, since then, it claims to have faced numerous challenges due to ReBath’s alleged conduct. These include increased royalty charges and restrictions on local marketing efforts. The plaintiff argues that these actions constitute breaches of contract and violations of both Arizona’s Consumer Fraud Act and Virginia’s Consumer Protection Act.
The lawsuit also highlights significant financial implications for ARGS Construction Services due to these alleged practices. It states that technology fees alone saw an inexplicable increase from $330 per month in June 2024 to $1,943 per month by July 2024—an increase described as unjustified given no corresponding improvements in services or technology were provided.
In response to these grievances, ARGS Construction is seeking several forms of relief from the court. They are asking for compensatory damages for losses incurred due to inflated fees and restricted marketing capabilities. Additionally, they seek treble damages under consumer protection laws and demand an accounting of all fees collected by ReBath from its franchisees.
Representing ARGS Construction Services are attorneys Jay Parmelee and Samuel Dampt from Denton Peterson Dunn PLLC based in Mesa, Arizona. They are joined by Robert Zarco and his team from Zarco Einhorn Salkowski P.A., who are seeking pro hac vice admission for this case. The presiding judge is yet to be named for Case ID: 2:25-cv-04435-SHD.
Source: 225cv04435_ARGS_Construction_Services_Inc_v_ReBath_LLC_Complaint_District_Arizona.pdf