In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the DreamMaker Bath & Kitchen franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a DreamMaker Bath & Kitchen 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 DreamMaker Bath & Kitchen franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned DreamMaker Bath & Kitchen 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 DreamMaker Bath & Kitchen’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2011-2019 average, median, highest, and lowest gross sales for the DreamMaker Bath & Kitchen franchisees that had been in operation for the full applicable calendar year
- 2019 average, median, highest, and lowest gross retail sales (by quartile and overall) for the 30 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2019 calendar year
- 2019 average, median, highest, and lowest gross profit margin (by quartile and overall) for the 26 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2019 calendar year and responded to the franchisor’s request for financial information (excluding the highest and lowest outlier)
- 2019 average, median, highest, and lowest contract value (by quartile and overall) for the 26 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2019 calendar year and responded to the franchisor’s request for information
Section I – Background Information
17 Things You Need to Know About the DreamMaker Bath & Kitchen Franchise
Becomes a Brand Partner of CGI Franchise
1. In mid-February 2020, DreamMaker Bath & Kitchen announced that it had become a Brand Partner of CGI Franchise. Art Coley, CEO of CGI Franchise, said, “DreamMaker Bath & Kitchen has a very innovative approach to their service and that’s exactly what makes them stand out from the rest. We’re excited to have them on board and can’t wait to get the ball rolling to see where this year takes them.”
2. The Recruitment Operating System, powered by CGI Franchise, is the result of years evaluating the franchise development process. CGI Franchise offers a solution and roadmap to rediscovering the passion for a franchise brand. As a CGI Franchise Brand Partner, DreamMaker will be trained and coached to use ROS and all its benefits.
3. CGI Franchise specializes in growing and strengthening franchises by coming alongside and providing a sustainable, proven franchise development system. Offering a combined 50 years of franchise recruitment experience, CGI Franchise sets the solution and the road map to rediscovering the passion for a franchise brand.
4. Doug Dwyer, president and chief stewarding officer of DreamMaker, said, “DreamMaker is committed to growing our brand presence. We believe CGI Franchise is the right partner to help us grow. In a short period of time, Art and his team have already provided DreamMaker with useful information that we have been able to integrate into our franchise recruiting efforts.”
Ranked 6th Largest National Remodeler in U.S. by Qualified Remodeler for Second Year in a Row
5. In mid-September 2020, DreamMaker Bath & Kitchen was named the 6th largest national home improvement company in the country by Qualified Remodeler magazine in its Top 500 list for 2020. The Qualified Remodeler Top 500 has been the gold standard for the home remodeling industry for 40 years.
6. “We are honored to receive this distinction,” said Doug Dwyer, president of DreamMaker. “2020 has been a challenging year for everyone. I am so proud of our franchisees and the corporate team for striving through adversity to help homeowners adjust to the new normal in their homes. This is truly an award our entire franchise network should feel proud of.”
7. No stranger to awards, the franchise has won a number of them as one of the top franchise opportunities as measured by franchisee satisfaction. DreamMaker has received 17 GuildMaster Awards and several Remodeling Big50 Awards, and was recognized as a Franchise Business Review 2020 Top Franchise by both franchisee satisfaction and franchise innovation.
8. Dwyer added, “Whether they’re experienced remodelers converting an existing business or changing careers after corporate life, our franchisees love the emphasis we place on helping them earn better margins on their work than a typical remodeling contractor. With our large franchise network, the DreamMaker team and their fellow franchisees comprise a family built on shared values and a mutual commitment to growth and service.”
9. DreamMaker is one of the nation’s most successful home remodeling franchises, with earnings consistently outpacing national averages. All franchise owners and their employees adhere to the company’s “Code of Values,” which emphasizes honesty and integrity while creating an excellent customer experience. “This means that we conduct our business completely above-board,” said Dwyer. “For us it’s not about seeing how quickly we can get someone to sign a contract and finish a job, we set expectations and live up to them. Our ongoing success is based on putting people first.”
Franchisee Receives Honorable Ethics Award
10. At the end of September 2020, the locally-owned DreamMaker Bath & Kitchen in Kern County, California was recognized by the Better Business Bureau (BBB) with the honorable BBB Torch Ethics Award for Marketplace Excellence. The award is evaluated and voted on by a panel of independent judges from the business and academic communities. The BBB said, “It’s more than just recognition for those that deserve it. It is a way to raise the bar of ethics and trust-building in the marketplace.”
11. “When we received the news that we were chosen for the BBB Torch Award for Ethics we were ecstatic, but at the same time humbled by the call to the level of professionalism that it demands. Everett and I have been blessed by those who brought us to this point in our career namely our three sons, our loyal and talented team which includes our in-house associates as well as our trade partners, and our wonderful clients that have put their trust in our company for the past 17 years,” said franchise co-owner Patty Gray.
12. DreamMaker Bath & Kitchen has become a well-recognized name in the remodeling industry. Additionally, the team has been recognized as the Best Home Improvement Contractor by the Best of Bakersfield Readers’ Choice Poll for 6 years and Favorite for 2 years. They have also been recognized for the Big50 national award by Remodeling Magazine for exemplary business practices (given to only 50 contractors a year across the nation).
13. The DreamMaker team has a combined 140 plus years of experience. Everett Gray started his career in 1973 with the Carpenter’s Local Union in Norfolk, Virginia, and earned his Journeyman Carpentry Certificate in 1977. He earned his California State Contractor’s License in 1983 and later incorporated their business in 1987, holding his present license #548785. Everett is well versed in all aspects of residential construction from foundations to roofing as a result of both his formal training and field experience.
14. Everett Gray added, “Our entire team is committed to finding the right solution from the many options available for each family. From simple cost effective projects to luxury at its finest, there is no ‘one size fits all’ when it comes to creating environments that match our clients’ individual lifestyle needs.”
Company History
15. DreamMaker Bath & Kitchen was founded in 1975 and traces its history to when GNU Corporation developed a system to put a beautiful, new hard-surface topcoat on porcelain bathtubs and sinks. After a decade of growth, the company started franchising under the name Worldwide Refinishing Systems, Inc. Under the ownership of the Dwyer Group (now called Neighborly), Worldwide Refinishing continued to grow around the United States. In 1999, the company changed its name to DreamMaker Bath & Kitchen to reflect the brand’s mission to offer full-service bath, kitchen, and full-interior remodeling services.
16. In 2003, Doug Dwyer, who is DreamMaker’s president and chief stewardship officer, purchased DreamMaker from his family. After the acquisition, Doug Dwyer expanded DreamMaker’s services, moving beyond resurfacing and refinishing to become a full-service interior remodeling company focused on improving lives. Since then, DreamMaker Bath & Kitchen has grown slowly but steadily around the U.S.
Entrepreneur’s Franchise 500
17. DreamMaker Bath & Kitchen did not rank on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of DreamMaker Bath & Kitchen 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 DreamMaker Bath & Kitchen’s 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: 36
- Outlets at the End of the Year: 38
- Net Change: +2
2018
- Outlets at the Start of the Year: 38
- Outlets at the End of the Year: 34
- Net Change: -4
2019
- Outlets at the Start of the Year: 34
- Outlets at the End of the Year: 34
- 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 – Average Gross Sales Achieved by DreamMaker Franchisees in Calendar Years 2011-2019
- The following table reflects average Gross Sales achieved by DreamMaker franchisees in calendar years 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, and 2019.
- In calculating these averages, DreamMaker included Gross Sales information only for the franchisees that had been in operation for the full calendar year, and excluded information about franchisees that began operating after January 1st or ceased operating before December 31st of the respective year.
- For purposes of this Item 19, “Gross Sales” is defined as cash received during the given time period. There are no deductions other than any refunds or credits given to a client.
2011
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