FDD Talk: Bloomin’ Blinds Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Bloomin’ Blinds franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Bloomin’ Blinds franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Bloomin’ Blinds franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Bloomin’ Blinds outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Bloomin’ Blinds’ financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, median, highest, and lowest gross revenue for the 24 Bloomin’ Blinds franchisees whose units were open and operating for the entire year January 1, 2018 to December 31, 2018 (the “Reporting Period”)

Section I – Background Information

13 Things You Need to Know About the Bloomin’ Blinds Franchise

Partners with Dispatch to Revolutionize the Home Service and Booking Experience

1.  In mid-November 2019, Bloomin’ Blinds announced that it had partnered with service experience platform Dispatch to modernize customers’ journeys. By partnering with Dispatch, Bloomin’ Blinds can now provide a seamless booking experience, last-mile tracking/notifications, and automated social profile management to its customers.

2.  “Dispatch gives us exactly what we’re looking for – helping us to make our service experience seamless,” said Bloomin’ Blinds CEO Kelsey Stuart. “On top of that, their platform was highly flexible and has been so easy to integrate with our existing systems.”

3.  Helping to formalize the multi-year partnership was Krista Avantini, director of emerging franchise brands for Dispatch, who described the relationship as “an amazing opportunity to provide Bloomin’ Blinds’ network of business owners with a comprehensive solution – while simultaneously delivering a modernized experience to their customers.”

4.  Charlie Hadlow, head of marketing for Dispatch, added that “Bloomin’ Blinds is a truly unique company that prioritizes customer experience and value; we are thrilled to help them further innovate their approach to the market.”

Selects Solatech for Point of Sale

5.  In early August 2019, Bloomin’ Blinds partnered with Solatech to help its franchise owners improve their workflow and profitability. Solatech’s Private Dealer Ordering System (based upon Solatech Focus), a cloud-based point of sale system that works on iPads and other tablets, as well as laptops, is now the solution of choice for the entire Bloomin’ Blinds franchise group.

6.  According to Bloomin’ Blinds CEO Kelsey Stuart, “Solatech was a natural selection in the evolution of our business. We love the accuracy, the innovation, the creativity, and the desire to win through our success that Solatech brings to the table every day. I couldn’t be happier with the support and attention during our on boarding process, making a very complicated transition much smoother than we thought could be. I feel like we have found a partner that is truly interested in our success and one that desires to be part of it in the long run.”

7.  Solatech CEO Ray Soltis added, “The power and simplicity of our private Dealer Ordering System make it the perfect point of sale system for Bloomin’ Blinds. It not only makes quoting and selling window fashions easier than it’s ever been, it’s simple to use and works on devices that many sales professionals already have. The learning curve is very brief. We had their entire franchise group up and running within a few weeks.”

8.  Under its agreement with Bloomin’ Blinds, Solatech has created a branded Focus interface for Bloomin’ Blinds dealers. Franchise owners and their sales teams now have access to a complete suite of software tools that allow the quick creation of quotes, and approval and submission of sales orders. Along with accounting and dispatching system integrations, Solatech provides a complete system to run window fashion businesses.

9.  On a final note, Solis said, “Great customer experiences are helped by retailers using accurate, consistent point of sale tools. For years, our point of sale customers have seen the results of using our fabricator-supported data to quote, sell and order window fashions. We’re excited to bring those benefits to Bloomin’ Blinds.”

Company History

10.  Bloomin’ Blinds was founded on September 11, 2001 by Karen McGuffin in Dallas, Texas. According to the Bloomin’ Blinds website, McGuffin filed the company’s incorporation papers just two hours before planes hit the Twin Towers in New York. Despite it not being a good time to start a new business, McGuffin forged on and learned to adapt and thrive in an incredibly tumultuous environment.

11.  McGuffin is a longtime entrepreneur and had been in the blind cleaning and blind repair business since 1993. Before starting Bloomin’ Blinds, McGuffin sold her original blind business and wanted to make Bloomin’ Blinds better than her previous company.

12.  To start Bloomin’ Blinds, McGuffin partnered with Kelsey Stuart, Kris Stuart, and Kevin Stuart. McGuffin and the Stuarts started franchising Bloomin’ Blinds in 2014 and there are now locations around the U.S. and some in Canada as well. Along with McGuffin, the Stuarts continue to run Bloomin’ Blinds today.

Entrepreneur’s Franchise 500

13.  Bloomin’ Blinds ranked No. 160 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Bloomin’ Blinds franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Bloomin’ Blinds’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  27
• Net Change:  +16

2017

• Outlets at the Start of the Year:  27
• Outlets at the End of the Year:  39
• Net Change:  +12

2018

• Outlets at the Start of the Year:  39
• Outlets at the End of the Year:  52
• Net Change:  +13

Company-Owned

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2017

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• The following table shows the historical reported average, median, low, and high annual fiscal year 2018 Gross Revenue for the 24 franchisees whose units were open and operating for the entire year January 1, 2018 to December 31, 2018 (the “Reporting Period”).

• This Item 19 does not include information for units that were not open the entire Reporting Period.

• Bloomin’ Blinds prepared the information below from its information and from information provided by its franchisees. These reported results are not audited, and Bloomin’ Blinds has not independently verified data provided by its franchisees, although Bloomin’ Blinds believes it to be accurate.

• Of the units represented in the sample, all units (100%) met the stated results in the table below.

• “Gross Revenue” as used in this Item 19 includes all revenue but excludes (i) sales taxes or similar taxes that, by law, are chargeable to customers and payable to a taxing authority; and (ii) refunds, chargebacks, credits, and allowances given to customers.