Kitchen Tune-up Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)

1.  Initial Franchise Fee:  $19,950

• The Initial Franchise Fee is discounted by 15% if you are a veteran, active service member, or spouse of a veteran or active service member of the United States armed forces.

2.  Initial Territory Fee:  $60,000

• The Initial Territory Fee is discounted by 15% if you are a veteran, active service member, or spouse of a veteran or active service member of the United States Armed Forces.

3.  Travel and Living Expenses While Training:  $1,750 to $3,000

• Training consists of a combination of up to 12 days of virtual/in-person Academy training at the HFC Experience Center in Coppell, Texas. Especially during COVID-19, the mode of delivery of training is subject to change.

• This expense includes travel, lodging, food, and personal expenses while attending in-person training in Coppell, Texas. This amount varies depending on whether you drive or fly. You must also pay any wages of your employees for their time during training.

4.  Office/Work Space:  $500 to $3,000

• Most of Kitchen Tune-Up’s franchisees operate their franchised businesses out of their homes.

• If you decide to obtain an office/workspace outside of your home, or if you choose to operate from a retail location, your initial investment will be higher depending on real estate or leasing marketing conditions in your area.

• Generally, most office/workspace locations are approximately 500 to 1,200 square feet and are located in a strip mall, or other commercial building.

5.  Vehicle:  $7,000 to $30,000

• You must have a white vehicle with the approved Kitchen Tune-Up signage for each franchised business.

• Kitchen Tune-Up gives you the artwork files for the signage.

• This is the estimated cost per vehicle.

• The white vehicle must be in unblemished condition. The vehicle must be continuously maintained and present a professional impression.

• Since Kitchen Tune-Up does not know if you already own a white vehicle or the manufacturer, model, or condition of the vehicle you may be using, the low range assumes that you can affix the required signage to a white vehicle that you already own, which complies with Kitchen Tune-Up’s standards, or that you lease or place a down payment on a vehicle.

• The high range involves an estimate if you must purchase, or lease, a white vehicle, plus the cost to purchase and affix the signage, to comply with Kitchen Tune-Up’s standards.

• You should not purchase your vehicle for cash unless you will still have at least that same amount available as additional working capital to operate your business.

• From time to time your affiliation with HFC may allow for discounts on these vehicles and Kitchen Tune-Up’s recommendation is to check with your Regional Operations Manager before purchasing or leasing.

6.  Credit Card Processing Technology:  $30 to $500

7.  Miscellaneous Tools and Office Supplies:  $1,000 to $3,000

• Kitchen Tune-Up recommends additional tools and office supplies required for your franchised business.

8.  Miscellaneous Opening Costs:  $2,000 to $3,500

• While Kitchen Tune-Up provides you with a Startup Package when you pay the Initial Franchise Fee, there is other information, equipment, and inventory that you will need to operate your franchised business.

• Kitchen Tune-Up will provide you with a list of Approved and Partnership Vendors who sell the equipment and inventory necessary to operate your franchised business. You must purchase services, products, equipment, and inventory from Kitchen Tune-Up’s Partnership Vendors and Approved Vendors.

• Proprietary “private label” products must be purchased from Kitchen Tune-Up.

• Included in this estimate is Quick Books Online financial software which integrates with Kitchen Tune-Up’s operations system.

9.  Lead Safe Certification:  $300 to $500

• The Federal Environmental Protection Agency (EPA) requires that businesses performing renovation, repair, and painting projects that disturb lead-based paint in homes, child care facilities, and pre-schools built before 1978 be certified by the EPA or an EPA-authorized state, use certified renovators who are trained by EPA-approved training providers, and follow lead-safe work practices.

• Kitchen Tune-Up estimates that the certification process will take about 8 hours to complete.

10.  Contractor’s License and Bond:  $150 to $1,500

• A contractor’s license and bond are required only in states that require a contractor’s license.

11.  Auto Insurance:  $1,000 to $3,000

• Such policy must be on an occurrence basis with a combined single limit for bodily injury, death, or property damage of not less than $1,000,000.

• Kitchen Tune-Up must be named as an additional insured.

12.  Commercial General Liability Insurance:  $500 to $2,400

• Such policy must be on an occurrence basis with a combined single limit for bodily injury, death, or property damage of not less than $2,000,000. Kitchen Tune-Up must be named as an additional insured.

13.  Professional Fees:  $750 to $3,500

14.  Initial Marketing for 3 Months:  $15,000 to $25,000

• This estimate is for the first three months of operations. Kitchen Tune-Up recommends you initially spend a minimum of $4,000 per month on local marketing.

15.  Additional Funds Before Opening and First Three Months:  $20,000 to $30,000

• This category estimates an additional cash reserve needed to cover initial operating expenses during the first three months of operation. The amount of additional funds that you may need varies based on a variety of factors, including whether you choose to have an office outside your home, the number of employees you choose to hire, and the salary and other benefits you choose to pay, gasoline purchases, and vehicle maintenance expenses.

• Kitchen Tune-Up has relied on the experience of its United States franchisees to compile these estimates.

16.  Total Estimated Initial Investment:  $129,930 to $188,850