Detailed Estimates of DreamMaker Bath & Kitchen Franchise Costs Based on Item 7 (Estimated Initial Investment) of DreamMaker Bath & Kitchen’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $40,000 to $48,000, plus $200 per 1,000 additional population over the minimum
- The minimum initial franchise fee to be paid to DreamMaker is $40,000 for a Territory containing a population of 200,000, which is the minimum Territory you may purchase for more rural and less densely populated areas; or an initial franchise fee of $48,000 (which includes the Population Discount) for a Territory containing a population of 300,000, which is the minimum Territory you may purchase for more densely populated and urban areas.
- You may purchase a Territory of up to 1,000,000 in population where the Initial Franchise Fee is calculated as $200 per 1,000 population.
2. Software License Fee: $3,995
- Upon signing the Franchise Agreement, you must pay DreamMaker a software license fee of $3,995.
3. Vehicle: $0 to $9,000
- At least one full-size cargo van, truck-enclosed trailer combination, or truck-camper-top combination (vehicle) is required. Minimum acceptable enclosed trailer size is 6’ x 10’ with a minimum height of 6’6”.
- Each vehicle must not be more than four years old at the time of acquisition, in excellent condition, white in color (including truck-enclosed trailer combination) and have the required graphics decal/wrap package, including Marks professionally applied before the vehicle is put into service.
- An existing vehicle can be converted for use in the franchised business or you may choose to acquire a vehicle; either must meet DreamMaker’s specifications.
- One graphics wrap set featuring DreamMaker’s Marks for a standard van is included in your franchise development package. You must purchase a graphics wrap set for each additional vehicle from DreamMaker’s preferred vendor. Currently, a trademark graphics wrap set for a standard van costs $3,200.
- The low figure assumes you currently own a full-size cargo van or truck that meets DreamMaker’s qualifications. The high figure assumes that you are purchasing or leasing a cargo van or truck that is four years old or newer, and financing a $20,000 total purchase price over three years. The high figure represents a 20% down payment, plus taxes, title and registration, and nine months’ finance payments of $550 each.
- The estimated cost range reflects the cost of acquiring a vehicle only that meets DreamMaker’s standards, not including the graphics wrap package. You may customize your vehicle wrap to include additional approved information for an additional charge.
4. Equipment, Supplies, and Inventory: $27,555 to $31,555
- If you already own an existing business similar to the franchise, you will own much of the necessary equipment, supplies, and inventory, including computer hardware and software, to begin the operation of your franchise. The low estimate shown here assumes that you already own an existing business similar to the franchise with many of these necessary items.
- The high estimate shown here assumes you do not own an existing business, and includes office and field equipment, software, and printer, etc., including inventory and supplies needed to equip your franchise in accordance with DreamMaker’s standards.
- Both estimates include printed material (i.e., business cards, stationery, brochures, marketing materials, etc.), certain software packages, the franchise development package that must be purchased from DreamMaker for $18,995, and initial sales training.
5. Insurance: $2,000 to $5,500
- You must purchase the insurance coverage described in Item 8. If you do not, DreamMaker can purchase it for you and bill you for its costs.
6. Initial Advertising and Promotional Deposit: $12,000 to $42,000
- You will need to advertise locally in the start-up phase of your franchise to help establish name recognition in your locality, as well as generate customer leads.
7. Training, Travel, Lodging, and Food: $4,000 to $7,500
- You should allow at least the minimum amount stated above for travel, lodging, food, and other miscellaneous living expenses incurred during Waco Training.
- The low estimate shown above assumes DreamMaker will train no additional people. The high estimate includes an additional amount of training fees and costs in the event you wish DreamMaker to train additional employees.
- Both estimates include the required visit to a franchise during the Simulation Training and a required visit to DreamMaker’s preferred cabinet vendor.
8. Deposits, Permits, and Licenses: $0 to $2,000
- DreamMaker does not require any prepaid deposits, permits, or licenses before you begin the operation of your franchised business but your particular locality may require a permit or license to perform remodeling services or have other business licensing requirements.
- You are responsible for obtaining any permits or contractor’s licenses as well as any other business licenses required in your locality.
9. Real Estate: $24,300 to $109,400
- Within six months after completing Waco Training, you must begin operating from a commercial location that meets DreamMaker’s then-current site selection criteria for a design center as set forth in the Manual.
- The low estimate amount DreamMaker has allocated is for a period of seven months and is based on DreamMaker’s estimate of what you may have to pay for a mortgage or lease, utilities, and furnishings to meet DreamMaker’s minimum requirements for a retail design center.
- The high estimate is for costs of acquiring additional space and subsequent mortgage or lease, utilities, buildout, displays, and furnishing for your design center. No other related costs are included.
10. Professional Fees: $8,225 to $11,600
- This estimate is for fees that will be charged by your attorney to review the Franchise Agreement and other documents, to advise you, and to incorporate a business entity on your behalf, as well as those charged by your accountant and/or financial advisor.
- The low estimate assumes the business is a conversion and the high estimate assumes a startup.
- DreamMaker charges you a per-person registration fee to attend the Reunion. The registration fee is usually $250 to $350 per person, with discounts for early registration and for subsequent attendees.
- For non-participants, there is a separate charge for the Banquet, usually $45 for children under 12 and $75 for those over 12.
- This fee is nonrefundable because your attendance is required.
11. Additional Funds for 9 to 12 Months (includes estimated personal living expenses for 6-12 months): $18,000 to $91,500
- DreamMaker recommends that you have additional funds available during the start-up phase of your franchise. These amounts are DreamMaker’s estimates of the amount needed to cover your expenses before opening and for a six to 12-month period from the date you open for business, and include funds needed to pay the Software Maintenance and Support and Continuing Education Fees.
- These figures are only estimates and DreamMaker cannot assure you that you will not have additional expenses starting your franchise.
- Included in additional funds is an estimate of personal living expenses estimated at $3,000 to $6,000 per month and the estimated salary of a part-time office manager (minimum 20 hours a week) and up to a full-time office manager dedicated solely to your franchise operation. This is based on DreamMaker’s experience and information from franchisees who have estimated this for themselves. This is only an estimate.
12. Refundable Design Center Buildout Deposit: $2,500
- The deposit will be returned to you upon submission of an estimate of your design center buildout in EMT, DreamMaker’s proprietary software, and you review your submission with your franchise coach.
13. Totals: $142,575 to $364,550, plus any additional franchise fee