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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Bloomin’ Blinds’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average gross sales, cost of goods sold (contract labor, materials, equipment rental and tools), gross profit, certain marketing and operation expenses (local marketing, royalties, National Marketing Fund, payroll, office supplies, uniform, vehicle expense, bank charges and merchant fees, insurance, licenses and permits, IT and telephone), and adjusted earnings for the 20 Bloomin’ Blinds franchisees in the United States that were open and operating for the entire year January 1, 2020 to December 31, 2020 and provided Bloomin’ Blinds with their summary income statements for the 2020 calendar year

• 2020 average, median, highest, and lowest gross sales and gross profit margin for the 33 Bloomin’ Blinds franchisees who operated a total number of 43 territory units in the United States that were open and operating for the entire year January 1, 2020 to December 31, 2020, by thirds (top third, middle third, bottom third)

• 2020 number of invoices, percentages of total invoices, average and median values of the invoices, and percentage of total gross sales by category of goods and services (blinds and shades, shutters, and repairs) for the 33 Bloomin’ Blinds franchisees in the United States that were open and operating for the entire year January 1, 2020 to December 31, 2020

• 2020 total number of appointments and financial transactions for the 33 Bloomin’ Blinds franchisees in the United States that were open and operating for the entire year January 1, 2020 to December 31, 2020

• total amount of gross sales for all Bloomin’ Blinds franchised units open during the listed calendar year (2015-2020), regardless of whether that unit was open throughout that year

Section I – Background Information

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

Announces Aggressive Expansion Plans for Michigan

1.  In early March 2021, Bloomin’ Blinds announced its aggressive expansion plans slated for the state of Michigan. As the only franchise concept in the space to offer both window treatment and repair services, Bloomin’ Blinds plans to bring at least eight new franchisees to the state over the next two to three years. The brand is specifically targeting expansion in Macomb, Rochester Hills, Farmington Hills, Ann Arbor, Lansing, Grand Rapids, Kalamazoo/Battle Creek, and Midland.

2.  The brand set aggressive goals for new franchises in 2021 and, having seen first-hand demand for home improvement services skyrocket over the past year, is ready to ramp up its expansion plans before year-end and break into new markets. This growth phase specifically targets the state of Michigan after witnessing success amid the pandemic in Farmington Hills in only three months of operation.

3.  The brand foresees ample growth opportunity for the state, as there has been an uptick in demand for home improvement projects during the pandemic, coupled with the fact that there is a significant lack of window covering repair providers in the metro area. Bloomin’ Blinds chose Michigan as an area for further development as it strives to increase brand awareness in the Midwest states as of 2021.

4.  Lou Farkas, owner of Bloomin’ Blinds Farmington Hills, said, “Residents across Michigan are craving home improvement brands that offer technology-driven customer service while maintaining product expertise and pride in customer education, making the state a performing market for home improvement concepts that still value strong customer service, done through a tech-forward and COVID-safe platform. Having a mobile franchise is a great added benefit of the brand, especially as we continue to live in a pandemic – we’re able to open quickly and assist homeowners without missing a beat.”

5.  Known for delivering a superior customer experience, Bloomin’ Blinds offers both window treatment and repair options with the ultimate goal of helping complete a homeowner’s vision from start to finish. The brand has invested in technology that allows the customer to feel safer ahead of a consultation, as the dispatched vehicle is GPS tracked and the mobile app displays a headshot and bio of who will be arriving for the service.

6.  Kelsey Stuart, CEO of Bloomin’ Blinds, added, “Michigan is poised for successful growth for our brand. This strategic development approach is a part of our continued Midwest expansion with the ultimate goal of expanding our franchise network, comprised of individuals with the ability to establish their presence within their communities, while creating a positive reputation for the brand across the state. We are humbled to see our first Michigan franchise partner already meet and exceed those standards, and are looking forward to working with more.”

Reported Record-Breaking Performance in First Half of 2021

7.  In late June 2021, Bloomin’ Blinds reported that the company had a busy first half of 2021. In addition to experiencing double-digit jumps in same-store sales each month, the brand is moving its corporate office to a larger space, staffing up, and continuing franchise expansion into new markets across the country. Following an impressive performance amid the pandemic due to surges in home buying and improvement, Bloomin’ Blinds also initiated several giveback campaigns in Q2.

8.  The franchise had already signed over 11 agreements year-to-date – 3 of which are in new states, like a recently announced deal in New Hampshire. This rapid expansion has set an overall brand growth strategy in motion, which includes building out the leadership team and constructing a new state-of-the-art corporate headquarters in Lewisville, Texas.

9.  Strengthening the leadership team starts with onboarding a chief finance officer, customer contact center director, training and franchisee technical support director, and marketing/branding director, with many of the roles requiring support teams as well.

10.  The newly-built home office will be designed with collaboration, comfort, and work ergonomics in mind. In a few short months, the brand’s staff numbers will be up 200% and the corporate office square footage will grow by 5,000 sq. ft.

11.  According to CEO Kelsey Stuart, “Bloomin’ Blinds was launched in our family’s garage 20 years ago, so it’s crazy to think that we’ll now occupy a beautiful, new corporate office – one that could swallow about 10 of those garages. This past year threw everyone for a loop, but, for our team, our performance was a validation of the value that we provide both our franchisees and our customers. The moment and performance is monumental for our brand and is helping us usher in a new era of growth.”

12.  Between 12-15 franchise openings were planned for the remainder of 2021 in target markets such as Florida, the Midwest, and the Northeast. And, sales continue to grow for Bloomin’ Blinds’ existing network of franchisees, with system-wide sales up 46% from six months prior.

13.  The record performance hasn’t gone unnoticed, resulting in several award wins, such as being ranked No. 67 on Entrepreneur’s Top Low-Cost Franchises for 2021. It has also allowed the brand to place a focus on giving back to its own franchise network and fellow small business communities across the country.

14.  COO Kris Stuart added, “There’s still a long road to recovery for many businesses following the recent pandemic and we want to help. We launched the Back to Business Contest to both help a small business in need while also reminding everyone of their role in helping small business America rebound, and that comes from shopping small, dining local or work referrals. We pride ourselves on being a goodwill partner in our communities – it’s incredibly gratifying to have the resources to help, and that’s exactly what we plan to continue doing. While the Back to Business Contest is still accepting nominations, we already have plans for more giveback campaigns in the future.”

Company History

15.  Bloomin’ Blinds was founded on September 11, 2001 by Karen McGuffin in Dallas, Texas. McGuffin had been in the blind cleaning and blind repair business since 1993 and decided to sell her original company in Seattle, Washington. She set out to start a new blind cleaning and repair business and founded it two hours before the tragic events of 9/11.

16.  Despite it being a tough time in the United States, Bloomin’ Blinds found success. McGuffin brought in her three sons, Kelsey Stuart, Kris Stuart, and Kevin Stuart to help her run Bloomin’ Blinds.

17.  Over the next decade, McGuffin and the Stuarts successfully grew Bloomin’ Blinds. They decided to start franchising the concept in 2014. Today, Bloomin’ Blinds has locations across the United States and the Stuart brothers continue to run the company.

Entrepreneur’s Franchise 500

18.  Bloomin’ Blinds ranked No. 415 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Bloomin’ Blinds franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  39
• Outlets at the End of the Year:  55
• Net Change:  +16

2019

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  53
• Net Change:  -2

2020

• Outlets at the Start of the Year:  53
• Outlets at the End of the Year:  62
• Net Change:  +9

Company-Owned

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

2020

• 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, 2021 FDD) and Analysis

• Except as indicated in Part 6, the following tables show the historical reported information for the 33 franchisees (each an “Operational Franchise Outlet”) who operated a total number of 43 territories in the United States that were open and operating for the entire year January 1, 2020 to December 31, 2020 (the “2020 Reporting Period”).

• This Item 19 does not include information for 27 territory units that were not open the entire 2020 Reporting Period (two territory units were closed temporarily during 2020 due to COVID-19 restrictions, 17 territory units opened during 2020, and 8 territory units permanently closed during 2020).

• 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.

Part 1 – 2020 Summary Income Statement (Averages)

• The following is a summary income statement for the averages of the 20 Operational Franchise Outlets who provided Bloomin’ Blinds with their summary income statements for the 2020 Reporting Period.

Gross Sales:  $426,571.24 (100.00%)

Cost of Goods Sold

• Contract Labor:  $3,761.21 (0.88%)
• Materials:  $213,045.87 (49.94%)
• Equipment Rental and Tools:  $1,530.13 (0.36%)
• Total Cost of Goods Sold:  $218,337.20 (51.18%)

Gross Profit:  $208,234.04 (48.82%)

Certain Marketing and Operation Expenses

• Local Marketing:  $22,593.94 (5.30%)
• Royalties:  $22,667.14 (5.31%)
• National Marketing Fund:  $8,233.68 (1.93%)
• Payroll:  $1,203.73 (0.28%)
• Office Supplies, Uniform:  $1,439.52 (0.34%)
• Vehicle Expense:  $8,062.29 (1.89%)
• Bank Charges and Merchant Fees:  $5,801.43 (1.36%)
• Insurance:  $3,068.05 (0.72%)
• Licenses and Permits:  $320.88 (0.08%)
• IT and Telephone:  $4,361.92 (1.02%)
• Total for Certain Marketing and Operation Expenses:  $77,752.57 (18.23%)

Adjusted Earnings:  $155,505.14 (30.59%)

• Adjusted Earnings means the Gross Profit minus the Total for Certain Marketing and Operation Expenses. Among the “excluded expenses” are interest; consulting fees; federal, state, and local taxes; depreciation; amortization costs; and other miscellaneous costs that certain franchisees may have incurred; these items will reduce profits. This is not the same as “net income” or “net profit” of the business.

Part 2 – 2020 Gross Sales Information

• The following table shows the historical reported information for the average, median, low, and high annual Gross Sales for the 33 Operational Franchise Outlets who were open and operating for the entire 2020 Reporting Period.

Top Third (11 Operational Franchise Outlets)

• Highest:  $1,266,666.57
• Lowest:  $361,501.54
• Average:  $664,864.22
• Median:  $671,175.51

Middle Third (11 Operational Franchise Outlets)

• Highest:  $357,056.47
• Lowest:  $239,591.88
• Average:  $308,495.88
• Median:  $323,319.33

Bottom Third (11 Operational Franchise Outlets)

• Highest:  $235,180.99
• Lowest:  $72,789.66
• Average:  $169,350.22
• Median:  $175,376.89

Part 3 – 2020 Gross Profit Margin Information

• The following table shows the historical reported information for the average, median, low, and high annual Gross Profit Margin for the 33 Operational Franchise Outlets who were open and operating for the entire 2020 Reporting Period.

Top Third (11 Operational Franchise Outlets)

• Highest:  73%
• Lowest:  53%
• Average:  58.27%
• Median:  57.00%

Middle Third (11 Operational Franchise Outlets)

• Highest:  53%
• Lowest:  50%
• Average:  51.45%
• Median:  51.00%

Bottom Third (11 Operational Franchise Outlets)

• Highest:  50%
• Lowest:  42%
• Average:  45.82%
• Median:  46.00%

• For this table, “Gross Profit Margin” means the percentage of Gross Sales remaining after reducing Total Cost of Goods Sold.

Part 4 – 2020 Sales by Category of Goods and Services

• The following table shows the historical reported information for the number of invoices, percentages of total invoices, average and median values of the invoices, and percentage of total Gross Sales for the 33 Operational Franchise Outlets who were open and operating for the entire 2020 Reporting Period.

Blinds and Shades

• Number of Invoices:  5,006
• Percentage of Invoices:  43%
• Average Value of Invoices:  $1,176.80
• Median Value of Invoices:  $1,220.37
• Percentage of Gross Sales:  63%

Shutters

• Number of Invoices:  1,372
• Percentage of Invoices:  12%
• Average Value of Invoices:  $2,827.71
• Median Value of Invoices:  $2,678.52
• Percentage of Gross Sales:  28%

Repairs

• Number of Invoices:  5,135
• Percentage of Invoices:  45%
• Average Value of Invoices:  $224.21
• Median Value of Invoices:  $123.00
• Percentage of Gross Sales:  8%

Part 5 – 2020 Appointment Information

• The following table shows the historical reported information for the total number of appointments and financial transactions, as well as similar information for the 33 Operational Franchise Outlets who were open and operating for the entire 2020 Reporting Period.

• Number of Appointments:  23,334
• Number of Financial Transactions:  11,513
• Average Value of All Invoices:  $948.58
• Median Value of All Invoices:  $904.61

• Average Number of Appointments Per Year Per Territory:  707
• Average Number of Financial Transactions Per Year Per Territory:  349
• Average Number of Appointments Per Month Per Territory:  58.9
• Average Number of Appointments Per Day Per Territory:  2.8

• Median Number of Appointments Per Year Per Territory:  538
• Median Number of Financial Transactions Per Year Per Territory:  306
• Median Number of Appointments Per Month Per Territory:  44.8
• Median Number of Appointments Per Day Per Territory:  2.1

Part 6 – Total Gross Sales for All Franchised Outlets

• The following graph and chart reflect the total amount of Gross Sales for all franchised units open during the listed calendar year, regardless of whether that unit was open throughout that year.

• 2015 (12 franchise territories at the end of the year):  $324,042
• 2016 (27 franchise territories at the end of the year):  $1,439,740
• 2017 (37 franchise territories at the end of the year):  $3,420,728
• 2018 (55 franchise territories at the end of the year):  $7,614,047
• 2019 (53 franchise territories at the end of the year):  $9,450,125
• 2020 (62 franchise territories at the end of the year):  $13,901,242

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