In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Kitchen Tune-Up franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Kitchen Tune-Up franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Kitchen Tune-Up franchise opportunity
Section V – Presentation and analysis of Kitchen Tune-Up’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2021 and 2022 average and median gross sales for Kitchen Tune-Up franchisees with a single territory and with multiple territories, that were in business throughout the applicable calendar year
- 2022 average cost of goods sold (that is, the cost to franchisees of Kitchen Improvements products and consumables sold by the franchisees) as a percentage of the price at which the franchisees sold those products and consumables to their customers, for the 136 Kitchen Tune-Up franchisees (representing 209 territories) that were open for all of 2022
- 2022 average sale amount and gross profit by service line for the 136 Kitchen Tune-Up franchisees (representing 209 territories) that were open for all of 2022
- 2022 percentage of volume by service line for the 136 Kitchen Tune-Up franchisees (representing 209 territories) that were open for all of 2022
- 2022 average and median closing rate for the 136 Kitchen Tune-Up franchisees (representing 209 territories) that were open for all of 2022
Section VI – Key ratios, comparables, computations, and analyses for the Kitchen Tune-Up franchise opportunity (exclusive content for Platinum subscribers)
Section I – Kitchen Tune-Up Franchise Costs
- Kitchen Tune-Up franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $19,950
- Initial Territory Fee: $60,000
- Travel and Living Expenses While Training: $1,750 to $3,000
- Office/Work Space: $500 to $3,000
- Vehicle: $7,000 to $30,000
- Credit Card Processing Technology: $30 to $500
- Miscellaneous Tools and Office Supplies: $1,000 to $3,000
- Miscellaneous Opening Costs: $2,000 to $3,500
- Lead Safe Certification: $300 to $500
- Contractor’s License and Bond: $150 to $1,500
- Auto Insurance: $1,000 to $3,000
- Commercial General Liability Insurance: $500 to $2,400
- Professional Fees: $750 to $3,500
- Initial Marketing for 3 Months: $15,000 to $25,000
- Additional Funds Before Opening and First Three Months: $20,000 to $30,000
- Total Estimated Kitchen Tune-Up Franchise Costs: $129,930 to $188,850
Section II – Kitchen Tune-Up’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Kitchen Tune-Up’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $19,950
- Royalty: if you purchase only one territory, you must pay the greater of (a) 7.0% to 4.0% of your Gross Revenue for the immediately preceding month or (b) $750 per month for the first year and $1,500 per month thereafter. During the first three months, Royalty only paid on actual Gross Revenue with no minimum.
- National Advertising Fund Payment: you must pay the greater of (a) 1% of your Gross Revenue for the immediately preceding month or (b) $500
Section III – Number of Franchised and Company-Owned Kitchen Tune-Up Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 196
- Net Change: +39
2021
- Outlets at the Start of the Year: 196
- Outlets at the End of the Year: 234
- Net Change: +38
2022
- Outlets at the Start of the Year: 234
- Outlets at the End of the Year: 258
- Net Change: +24
Company-Owned
2020
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the Kitchen Tune-Up Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Kitchen Tune-Up Franchise (Item 19, 2023 FDD)
- The following is historical financial information concerning the unaudited reported annual sales of a subset of Kitchen Tune-Up’s existing outlets, namely, those franchisees who reported gross sales and who were open for business for all of calendar year 2022 (91 single territory franchisees and 45 multiple territory franchisees, representing an aggregate total of 209 territories, or 100% of the territories open for all of 2022).
Part 1 – Annual Sales Levels
- The following table shows annual gross sales reported by franchisees with a single territory and with multiple territories, that were in business throughout calendar year 2022.
- Figures for franchisees that had multiple territories are total sales for all territories – not average per territory – and if a franchisee’s additional territory opened during 2022, the total sales do not represent a full year of sales for the additional territory.
- All gross sales figures are presented without regard to the size of the territory. Although Kitchen Tune-Up currently grants territories that include approximately 41,000 households, not all territories are that size. These variations in size arise both because Kitchen Tune-Up formerly sold territories of differing sizes and because territories can experience either growth or contraction after a franchise is sold.
- During 2022, there were 91 reporting franchisees who operated a single territory throughout the year, and 45 reporting franchisees who operated multiple territories each throughout the year.
- These sales results are based upon the sales reported to Kitchen Tune-Up by the franchisees.
A. Single-Territory Franchisees
2022
- Number of Single-Territory Franchisees: 91
- Number of Territories: 91
- Average Sales: $547,765
- Median Sales: $461,956
- Average Sales of 75th Percentile: $712,741
- Average Sales of Middle 50%: $460,492
- Average Sales of 25% Percentile: $245,001
2021
- Number of Single-Territory Franchisees: 83
- Number of Territories: 83
- Average Sales: $496,962
- Median Sales: $425,661
- Average Sales of 75th Percentile: $691,468
- Average Sales of Middle 50%: $430,416
- Average Sales of 25% Percentile: $243,965
B. Multi-Territory Franchisees
2022
- Number of Multi-Territory Franchisees: 45
- Number of Territories: 118
- Average Sales: $1,115,077
- Median Sales: $850,892
- Average Sales of 75th Percentile: $1,331,107
- Average Sales of Middle 50%: $907,052
- Average Sales of 25% Percentile: $612,058
2021
- Number of Multi-Territory Franchisees: 39
- Number of Territories: 106
- Average Sales: $1,152,343
- Median Sales: $756,000
- Average Sales of 75th Percentile: $1,626,531
- Average Sales of Middle 50%: $867,984
- Average Sales of 25% Percentile: $541,577
Part 2 – Franchisee Data as Reported via the CRM System for 2022
- The following unaudited data are as reported by Kitchen Tune-Up’s franchisees via the company’s CRM System for 2022. Kitchen Tune-Up excluded the CRM System data of franchisees who were not open for all of 2022. The following data are for the 136 franchisees (representing 209 territories) open for all of 2022.
A. Cost of Goods Sold
- The average cost of goods sold (that is, the cost to franchisees of Kitchen Improvements products and consumables sold by the franchisees) as a percentage of the price at which the franchisees sold those products and consumables to their customers was 33% of the gross (retail) sales price.
- Kitchen Tune-Up has not independently verified the amount reported by its franchisees, but that figure is consistent with information concerning suggested mark-ups that is discussed during franchisee training classes.
- Your cost of goods sold may vary from this average, depending upon the number and nature of competitors in your area, the prices at which they sell similar decorative coatings, your abilities and efforts, and other factors.
- In addition to the cost of goods sold, you will also incur other expenses that are not included in this calculation, such as:
- monthly payments (lease or financing) for the required vehicle,
- labor costs for anyone you hire,
- rent for office/warehouse space,
- telephone and other utility expenses,
- automobile,
- general liability and other types of insurance,
- royalties and advertising expenses,
- federal, state, and local taxes, and
- financing expenses if you finance any part of your investment.
- You may also incur other expenses, depending upon the manner in which you operate the business.
B. Average Sale Amount and Gross Profit by Service Line
Wood Restoration
- Average Sale Amount: $2,474
- Average Gross Profit (i.e., gross sales less labor and materials): 66% of gross sales
Refacing
- Average Sale Amount: $14,379
- Average Gross Profit (i.e., gross sales less labor and materials): 53% of gross sales
Redooring
- Average Sale Amount: $9,822
- Average Gross Profit (i.e., gross sales less labor and materials): 56% of gross sales
Cabinets
- Average Sale Amount: $17,697
- Average Gross Profit (i.e., gross sales less labor and materials): 48% of gross sales
Painting
- Average Sale Amount: $5,583
- Average Gross Profit (i.e., gross sales less labor and materials): 53% of gross sales
All Services
- Average Sale Amount: $11,398
- Average Gross Profit (i.e., gross sales less labor and materials): 54% of gross sales
C. Average Product Mix
- Wood Restoration: 3.9% of total sales
- Refacing: 47.7% of total sales
- Redooring: 16.2% of total sales
- Cabinets: 21.1% of total sales
- Painting: 11.1% of total sales
D. Closing Rate
- The average of all franchisees was 38%. The median was 34%.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.
Section VI – Kitchen Tune-Up Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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