For the most up-to-date financial information, check out our latest FDD Talk post analyzing Kitchen Solvers’ average revenues, expenses, and/or profits.

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

• Section I – Background information on the Kitchen Solvers franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Kitchen Solvers franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Kitchen Solvers franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned Kitchen Solvers outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Kitchen Solvers’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, high, and low gross sales for the 20 Kitchen Solvers franchisees that operated a single franchised business in the United States during the entire Measurement Period (January 1, 2019 through December 31, 2019) and the 8 Kitchen Solvers franchisees that operated more than one franchised business in the United States during the entire Measurement Period

• 2019 average, median, high, and low gross sales for the 5 Kitchen Solvers franchisees that operated a single franchised business in the United States during the entire Measurement Period with 2 or more full-time employees, and the 15 Kitchen Solvers franchisees that operated a single franchised business in the United States during the entire Measurement Period with 1 or less full-time employees

• 2019 average, median, high, and low gross sales for the 6 Kitchen Solvers franchisees that operated more than one franchised business in the United States during the entire Measurement Period with 2 or more full-time employees, and the 2 Kitchen Solvers franchisees that operated more than one franchised business in the United States during the entire Measurement Period with 1 or less full-time employees

• 2019 average gross sales, materials expense, installation expense, gross profit, and number of jobs for the 12 reporting Kitchen Solvers franchisees that operated a single franchised business in the United States during the entire Measurement Period, and the 7 reporting Kitchen Solvers franchisees that operated more than one franchised business in the United States during the entire Measurement Period

Section I – Background Information

22 Things You Need to Know About the Kitchen Solvers Franchise

Named a Top Franchise by Franchise Business Review

1.  In early November 2020, Kitchen Solvers was named a top franchise for 2020 by Franchise Business Review in its 15th annual ranking of the top 200 award-winning franchise opportunities. Franchise Business Review, a franchise market research firm that performs independent surveys of franchisee satisfaction, provides the only rankings and awards for franchise companies based solely on actual franchisee satisfaction and performance. Franchise Business Review publishes its rankings of the top 200 franchises in its annual Guide to Today’s Top Franchises.

2.  Kitchen Solvers was among over 307 franchise brands, representing more than 27,500 franchise owners, that participated in Franchise Business Review’s research. Kitchen Solvers franchisees were surveyed on 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems, including training and support, operations, franchisor/franchisee relations, and financial opportunity.

3.  Kitchen Solvers had a Franchisee Satisfaction Index (FSI) rating of 80.8, significantly higher compared to the rest of the Home Services Industry, with an average rating of 71.6. The highest-rated areas included:

• Honesty and Integrity: 92.7 (Benchmark: 81.3)
• Respect: 91.7 (Benchmark: 78.8)
• Trust: 91.7 (Benchmark: 82.8)
• Care About My Success: 90.6 (Benchmark: 81.0)
• Recommend to Others: 89.6 (Benchmark: 78.6)

4.  Another item to note is when franchise partners were asked about Covid-19 and how it has impacted their businesses and how they feel about their businesses today, 91.7% of franchise partners said they felt positive or very positive.

5.  Eric Stites, CEO of Franchise Business Review, said, “There are thousands of successful franchise companies operating in North America, but many of those companies do not offer a solid investment opportunity for the actual franchise owners. As an independent research firm, we rate the franchise companies in the marketplace today and identify those that have the highest levels of satisfaction and performance among their franchisees in order to help entrepreneurs choose which franchise to invest in. The companies on this year’s list are the top-performing brands in the areas critical to their franchisees’ success.”

6.  “It is an honor to be named a 2020 Top Franchise by a well-respective company like FBR,” said Zach Nolte, president of Kitchen Solvers. “We strive to be the best in franchise support, and culture as well as our core values are always at the forefront. Having an 80.8 Franchisee Satisfaction Index (FSI) amongst an industry that scored as a whole 71.6, means we are continually supporting the growth of our existing franchise partners and we’re excited to see that number climb every year.”

Kitchen Solvers President Discusses How Kitchen Solvers Helps Franchisees Build Successful Businesses

7.  At the beginning of July 2020, Zach Nolte, president of Kitchen Solvers, sat down with John Moreau, FranDevCo’s vice president of development, to discuss how Kitchen Solvers has shifted hardworking remodelers into successful business builders and his plans for future growth.

8.  As is essential in any business, Kitchen Solvers’ strong culture and mission can be attributed to the company’s leadership team and franchise partners. Nolte said, “My background prior to Kitchen Solvers was in operations and manufacturing. In 2014, I was approached to come on board with Kitchen Solvers as the Operations Manager. This was my first real taste of the franchise world and what it had to offer. Almost immediately, I fell in love with the model. I was able to take my operational background and really start applying a ‘franchisee first’ approach to Kitchen Solvers.”

9.  Nolte added, “My philosophy is, and will continue to be, driven by one simple question – If I were looking to start a franchise, what would I want and need to be successful? In 2017, when I took over as President of Kitchen Solvers, I was able to instill a culture that drives success through three things: franchisee satisfaction, innovation, and per unit metrics.”

10.  Kitchen Solvers, a 38-year-old brand with a wonderfully rich story of overcoming challenges, was built on the backs of people who loved woodworking, remodeling, and installation. In the beginning, the business model was set up to be lean and very profitable, but the franchise quickly found it difficult to sell their businesses with it being built around one person, the owner. In 2010, under new ownership, they started to change the business model.

11.  According to Nolte, “We wanted those hard-working remodelers to also be hard-working business builders. We added processes, procedures, more product and support vendors, and more home office staff to help our franchise partners build their legacy.” Leveraging the business expertise of the new home office staff, Kitchen Solvers supported its franchise partners in building businesses (not just jobs). All in the midst of a $150 billion kitchen and bath remodeling industry that is and will continue to grow.

12.  Nolte added, “Our franchise system is driven by one thing – providing an unforgettable moment for customers. When we walk into a finished kitchen project with our customers, we want to see their jaw hit the floor. We want to see our customers struggle to find the right word to describe their feelings and leave them with no other word but, ‘WOW!’”

13.  In the world of remodeling, it can be a tough task to achieve over and over again for every customer. Kitchen Solvers takes that challenge head on by providing each customer with the Pleasant Remodeling Experience. An eight point credence into how they treat their customers, it is a promise to their customers, and outlines what their customers can expect from franchise partners.

14.  Everything Kitchen Solvers stands for and delivers is customer-focused – from marketing verticals, to the structured sales processes, and the product. Zach stated, “We know that we are not for everyone, but we are for every one of our customers. We mirror this mission with our franchise partners. Putting our franchisees first and treating them in a way they then will pass on to their customers has been the key to building our culture.”

15.  Kitchen Solvers franchise partners come from all different backgrounds and experiences. Ranging from steel construction project managers, to clothing retail store managers, and real estate agents, they all have two things in common: 1) they currently own a Kitchen Solvers franchise, and 2) they believe in the corporate mission and culture.

16.  Business partners that have a strong management background, great people skills, are community involved, competitive, and have a customer-first attitude do very well in this business model. The energy, passion, and the culture exudes in every conversation with the home office and franchise owners. “At the end of the day, it is all about finding the right franchise partner. We are not necessarily looking for owners with industry or construction experience. Instead we have found that successful owners are those who share our passion for customer service and vision for success,” said Nolte.

17.  The success seen over the years can certainly be attributed to sharing the same values, but it is also due to the experience and expertise Kitchen Solvers has in the remodeling space. “We do this first and foremost by establishing great partnerships with our vendors so we are always at the forefront of the latest design trends and material being used. We are constantly adding and testing out new ways to improve our customer experience through new and innovative technology,” explained Nolte.

18.  Nolte added, “We’re also very mindful that kitchens are an emotional purchase for homeowners. It’s the most used room in the home, and it’s where families and friends gather. We always need to think about that when we interact with our customers and see how they’ll live in the space.”

Company History

19.  Kitchen Solvers was founded in 1982 by Gerald and Betty Baldner in La Crosse, Wisconsin. The Baldners found that by offering kitchen cabinet refacing, homeowners could achieve the look of a “like-new” kitchen at a much lower cost than a full remodel. Customers were so happy with the Baldners’ work that demand for their services grew quickly. In 1984, the Baldners began franchising the Kitchen Solvers concept and the first franchised location opened in Janesville, Wisconsin.

20.  Over the next decade, Kitchen Solvers continued to expand around the United States. Then, in 1999, the company opened its first international location in Ottawa, Ontario, Canada. Kitchen Solvers’ growth continued and in 2010, the company was acquired by Tom Miskowski and Wade Nolte.

21.  With Miskowski’s and Nolte’s investment and strong business backgrounds, Kitchen Solvers started to see a transition of taking hard-working remodelers and really turning them into hard-working business builders. There are locations across the U.S. and Canada today.

Entrepreneur’s Franchise 500

22.  Kitchen Solvers did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Kitchen Solvers franchise costs, based on Item 7 of the company’s 2020 FDD.

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

• Please click here for detailed information on Kitchen Solvers’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  50
• Outlets at the End of the Year:  50
• Net Change:  0

2018

• Outlets at the Start of the Year:  50
• Outlets at the End of the Year:  44
• Net Change:  -6

2019

• Outlets at the Start of the Year:  44
• Outlets at the End of the Year:  44
• Net Change:  0

Company-Owned

2017

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

2018

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

2019

• 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, 2020 FDD) and Analysis

Part 1 – Overall Gross Sales Information

• The information in this Part 1 reflects a historical financial performance representation of Gross Sales earned by those 28 franchisees that operated 39 franchised businesses located in the United States during the entire period of January 1, 2019 through December 31, 2019 (the “Measurement Period”).

• 10 franchisees operating 13 franchised businesses are excluded from the data presented in this Item 19 because they were not operational for the entire Measurement Period.

• “Gross Sales” includes the total revenues and receipts from the sale of all products and services sold through each Kitchen Solvers Business. Gross Sales does not include sales tax.

A. Single-Unit Reporting Franchisees

• The following table presents Gross Sales information for the 20 franchisees that operated a single franchised business during the Measurement Period.