In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a DreamMaker Bath & Kitchen franchise, based on Item 7 of the company’s 2024 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a DreamMaker Bath & Kitchen franchise, based on Items 5 and 6 of the company’s 2024 FDD
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Section IV – News updates on the DreamMaker Bath & Kitchen franchise opportunity
Section V – Presentation and analysis of DreamMaker Bath & Kitchen’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- 2011-2023 average, median, highest, and lowest gross sales for the DreamMaker Bath & Kitchen franchisees that had been in operation for the full applicable calendar year
- 2023 average, median, highest, and lowest gross retail sales (by quartile and overall) for the 38 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2023 calendar year
- 2023 average, median, highest, and lowest gross profit margin (by quartile and overall) for the 37 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2023 calendar year and responded to the franchisor’s request for financial information
- 2023 average, median, highest, and lowest contract value (by quartile and overall) for the 37 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2023 calendar year and responded to the franchisor’s request for information
Section VI – Key ratios, comparables, computations, and analyses for the DreamMaker Bath & Kitchen franchise opportunity (exclusive content for Platinum subscribers)
Section I – DreamMaker Bath & Kitchen Franchise Costs
- DreamMaker Bath & Kitchen franchise costs, based on Item 7 of the company’s 2024 FDD:
- Initial Franchise Fee: $44,000 to $69,300, plus $220 per 1,000 additional population over the minimum
- Software Support Fee: $3,995
- Vehicle: $0 to $9,500
- Equipment, Supplies, and Inventory: $30,390 to $34,390
- Insurance: $7,500 to $10,000
- Initial Advertising and Promotional Deposit: $36,000 to $48,000
- Refundable Continuing Education Fee: $1,200
- Training, Travel, Lodging, and Food: $4,000 to $7,500
- Deposits, Permits, and Licenses: $0 to $2,000
- Real Estate: $62,000 to $159,700
- Professional Fees: $8,275 to $12,500
- Additional Funds for 9 to 12 Months (includes estimated personal living expenses for 6-12 months): $18,000 to $101,250
- Refundable Design Center Deposit: $5,000
- Total Estimated DreamMaker Bath & Kitchen Franchise Costs: $222,860 to $466,835, plus any additional franchise fee
Section II – DreamMaker Bath & Kitchen’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- DreamMaker Bath & Kitchen’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:
- Initial Franchise Fee: $44,000 to $69,300, plus $220 per 1,000 additional population over the minimum
- Royalty Fee Standard: 3% to 7% of Gross Sales (roll-in: 3% to 4% of the “rolled-in” Gross Sales)
- Minimum Royalty Fee: beginning (a) eight months after the parties execute the Franchise Agreement or (b) four months after your Start Date, whichever occurs first, through the end of the first anniversary year, you must pay a Royalty Fee of $250 per week. Beginning the week following the first anniversary of the date you and DreamMaker execute the Franchise Agreement, you must pay a Royalty Fee of $250 per week plus an additional $125 per week for each additional 100,000 in population over the minimum population of 200,000. Beginning the week following the second anniversary of the date you and DreamMaker execute the Franchise Agreement, you must pay a Royalty Fee of $500 per week plus an additional $250 per week for each additional 100,000 in population over the minimum population of 200,000. The population in your territory is subject to increase each January.
- Marketing, Advertising, and Promotion Fee (“MAP Fee”): 2% of Gross Sales for the first $1,000,000 of Gross Sales per year and 1% of Gross Sales for all sales which exceed $1,000,000 in one year. However, if you have an existing business which you “roll-in” to the franchise, DreamMaker will discount the MAP Fee to 1% of the “rolled-in” amount for a certain period of time.
- Minimum MAP Fee: 1% of Gross Sales “rolled in”
- Advertising Cooperative: if a local or regional Cooperative is formed for a geographic area that includes your territory, you will determine the annual contribution in cooperation with the other members of the Cooperative. DreamMaker specifies that the maximum annual contribution to a Cooperative cannot exceed 2% of your Gross Sales.
- Required Advertising Spending: the initial advertising and promotional deposit will cover the first year’s advertising spending requirement. During the second year, you must spend at least 5% of your annual Gross Sales, and during the third and each additional year, you must spend at least 3% of your annual Gross Sales.
Section III – Number of Franchised and Company-Owned DreamMaker Bath & Kitchen Outlets
Franchised
2021
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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: 43
- Net Change: +9
2022
- Outlets at the Start of the Year: 43
- Outlets at the End of the Year: 42
- Net Change: -1
2023
- Outlets at the Start of the Year: 42
- Outlets at the End of the Year: 42
- Net Change: 0
Company-Owned
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
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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.📈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 DreamMaker Bath & Kitchen Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the DreamMaker Bath & Kitchen Franchise (Item 19, 2024 FDD)
Part 1 – Average, Median, Highest, and Lowest Gross Sales for Franchisees
- The following chart reflects average Gross Sales achieved by DreamMaker franchisees in calendar years 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023.
- 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.
- As reflected in the chart below, average Gross Sales for DreamMaker franchisees increased from $495,524 in 2011, to $1,516,480 in 2023, representing 206.04% growth. Median Gross Sales for DreamMaker franchisees increased from $455,310 in 2011, to $1,088,948 in 2023, representing 139.17% growth.
- 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
- Number of Franchisees That Operated for the Full Calendar Year: 43
- Average Gross Sales: $495,524
- Number and Percentage Meeting or Surpassing Average: 17 (40%)
- Median Gross Sales: $455,310
- Highest Gross Sales: $1,605,687
- Lowest Gross Sales: $11,727
2012
- Number of Franchisees That Operated for the Full Calendar Year: 38
- Average Gross Sales: $583,583
- Number and Percentage Meeting or Surpassing Average: 14 (37%)
- Median Gross Sales: $503,755
- Highest Gross Sales: $2,156,458
- Lowest Gross Sales: $54,977
2013
- Number of Franchisees That Operated for the Full Calendar Year: 34
- Average Gross Sales: $700,967
- Number and Percentage Meeting or Surpassing Average: 14 (41%)
- Median Gross Sales: $509,263
- Highest Gross Sales: $2,360,821
- Lowest Gross Sales: $77,124
2014
- Number of Franchisees That Operated for the Full Calendar Year: 34
- Average Gross Sales: $796,927
- Number and Percentage Meeting or Surpassing Average: 15 (44%)
- Median Gross Sales: $665,621
- Highest Gross Sales: $3,178,756
- Lowest Gross Sales: $30,902
2015
- Number of Franchisees That Operated for the Full Calendar Year: 33
- Average Gross Sales: $833,157
- Number and Percentage Meeting or Surpassing Average: 14 (42%)
- Median Gross Sales: $691,772
- Highest Gross Sales: $3,150,590
- Lowest Gross Sales: $0
2016
- Number of Franchisees That Operated for the Full Calendar Year: 31
- Average Gross Sales: $952,153
- Number and Percentage Meeting or Surpassing Average: 15 (48%)
- Median Gross Sales: $827,154
- Highest Gross Sales: $3,828,318
- Lowest Gross Sales: $29,121
2017
- Number of Franchisees That Operated for the Full Calendar Year: 35
- Average Gross Sales: $899,141
- Number and Percentage Meeting or Surpassing Average: 14 (40%)
- Median Gross Sales: $711,932
- Highest Gross Sales: $3,831,484
- Lowest Gross Sales: $44,500
2018
- Number of Franchisees That Operated for the Full Calendar Year: 33
- Average Gross Sales: $1,076,928
- Number and Percentage Meeting or Surpassing Average: 12 (36.4%)
- Median Gross Sales: $830,929
- Highest Gross Sales: $4,324,709
- Lowest Gross Sales: $500
2019
- Number of Franchisees That Operated for the Full Calendar Year: 30
- Average Gross Sales: $1,204,875
- Number and Percentage Meeting or Surpassing Average: 13 (43.3%)
- Median Gross Sales: $810,819
- Highest Gross Sales: $4,450,529
- Lowest Gross Sales: $91,419
2020
- Number of Franchisees That Operated for the Full Calendar Year: 33
- Average Gross Sales: $1,081,129
- Number and Percentage Meeting or Surpassing Average: 13 (39.4%)
- Median Gross Sales: $893,146
- Highest Gross Sales: $3,616,261
- Lowest Gross Sales: $500
2021
- Number of Franchisees That Operated for the Full Calendar Year: 34
- Average Gross Sales: $1,451,724
- Number and Percentage Meeting or Surpassing Average: 12 (35.3%)
- Median Gross Sales: $987,289
- Highest Gross Sales: $6,296,384
- Lowest Gross Sales: $110,821
2022
- Number of Franchisees That Operated for the Full Calendar Year: 39
- Average Gross Sales: $1,488,100
- Number and Percentage Meeting or Surpassing Average: 12 (30.8%)
- Median Gross Sales: $1,117,835
- Highest Gross Sales: $7,050,066
- Lowest Gross Sales: $61,824
2023
- Number of Franchisees That Operated for the Full Calendar Year: 38
- Average Gross Sales: $1,516,480
- Number and Percentage Meeting or Surpassing Average: 13 (34.2%)
- Median Gross Sales: $1,088,948
- Highest Gross Sales: $6,710,075
- Lowest Gross Sales: $112,805
Part 2 – Gross Sales Information About Franchisees Operating for the Full 12 Months of 2023
- As of December 31, 2023, there were 42 System franchisees in operation, 38 of which operated for the full 2023 calendar year. The following charts represent the average Gross Sales for these 38 franchisees.
Top Quartile
- Average Retail Sales: $3,254,502
- Highest Retail Sales: $6,710,075
- Lowest Retail Sales: $1,777,360
- Number of Franchises in Quartile: 10
- Number and Percentage Meeting or Surpassing Average: 3 (30.0%)
- Median Retail Sales: $2,897,471
Second Quartile
- Average Retail Sales: $1,345,515
- Highest Retail Sales: $1,571,818
- Lowest Retail Sales: $1,042,127
- Number of Franchises in Quartile: 10
- Number and Percentage Meeting or Surpassing Average: 6 (60.0%)
- Median Retail Sales: $1,380,920
Third Quartile
- Average Retail Sales: $874,332
- Highest Retail Sales: $1,018,327
- Lowest Retail Sales: $687,295
- Number of Franchises in Quartile: 9
- Number and Percentage Meeting or Surpassing Average: 5 (55.6%)
- Median Retail Sales: $958,858
Bottom Quartile
- Average Retail Sales: $417,453
- Highest Retail Sales: $595,871
- Lowest Retail Sales: $112,805
- Number of Franchises in Quartile: 9
- Number and Percentage Meeting or Surpassing Average: 5 (55.6%)
- Median Retail Sales: $430,478
- Of the 38 reporting franchisees discussed above, 35 were in operation during the full 2022 and 2023 calendar years.
- The following figures represent Gross Sales for 35 of these franchisees.
- The total combined Gross Sales for all 35 of these franchisees decreased by 1.74% when comparing year-end aggregate Gross Sales for 2023 to year-end aggregate Gross Sales for 2022. 16 franchisees met or surpassed this average in their own individual 2022 to 2023 percentage growth calculation.
- The average percentage growth for each of these 35 franchisees, when comparing each franchisee’s 2022 Gross Sales to 2023 Gross Sales, is 14.76%. Of this average, 11 franchisees met or surpassed the average.
- The median percentage growth for each of these 35 franchisees, when comparing each franchisee’s 2022 Gross Sales to 2023 Gross Sales, is 3.71%. Of this median, 18 met or surpassed the median.
Part 3 – Gross Profit Information About Franchisees Operating for the Full 12 Months of 2023
- DreamMaker sent a request for financial information to these 38 reporting franchisees discussed above and received information from 37 of them (97.4%).
- The following chart reflects average and median Gross Profit Margin for these 37 franchisees:
- Average Gross Profit Margin: 43.6%
- Median Gross Profit Margin: 46.8%
- Number Meeting or Surpassing Average: 24
- Number Meeting or Surpassing Median: 19
- The following chart reflects average and median Gross Profit Margin for these 37 franchisees, separated by quartile:
Top Quartile
- Average Gross Profit Margin: 51.5%
- Median Gross Profit Margin: 50.2%
- Number of Franchises in Quartile: 10
- Percentage Meeting or Surpassing Average: 40.0%
- Percentage Meeting or Surpassing Median: 50.0%
Second Quartile
- Average Gross Profit Margin: 47.6%
- Median Gross Profit Margin: 47.5%
- Number of Franchises in Quartile: 9
- Percentage Meeting or Surpassing Average: 44.4%
- Percentage Meeting or Surpassing Median: 77.8%
Third Quartile
- Average Gross Profit Margin: 43.7%
- Median Gross Profit Margin: 44.2%
- Number of Franchises in Quartile: 9
- Percentage Meeting or Surpassing Average: 55.6%
- Percentage Meeting or Surpassing Median: 55.6%
Bottom Quartile
- Average Gross Profit Margin: 30.6%
- Median Gross Profit Margin: 31.3%
- Number of Franchises in Quartile: 9
- Percentage Meeting or Surpassing Average: 55.6%
- Percentage Meeting or Surpassing Median: 55.6%
- “Gross Profit Margin” is the total Gross Sales for each franchisee minus the Cost of Goods Sold, expressed as a percent of Gross Sales.
- The “Cost of Goods Sold” is defined as direct costs to each job, including: 1) equipment costs; 2) production labor costs – insurance, workers’ compensation insurance, and burden; 3) production vehicle expenses – lease, maintenance and repair, fuel, license, and registrations; 4) materials and freight costs; 5) general production supply expenses; 6) permit costs; 7) debris removal; 8) subcontractor costs; and 9) small tools and equipment.
- The figures reflected in the charts above were compiled from unaudited information reported to DreamMaker by its franchisees.
Part 4 – Average Contract Value Information About Franchisees Operating for the Full 12 Months of 2023
- DreamMaker sent a request for information to these 38 reporting franchisees discussed above and received information from 37 of them (97.4%). The following charts represent Average Contract Value, as defined below.
- The following chart reflects average and median Contract Value for these 37 franchisees:
- Average Contract Value: $47,136
- Median Contract Value: $50,933
- Number and Percentage Meeting or Surpassing Average: 19 (51.4%)
- Number and Percentage Meeting or Surpassing Median: 19 (51.4%)
- The following chart reflects average and median Contract Value for these 37 franchisees, separated by quartile:
Top Quartile
- Average Contract Value: $72,824
- Median Contract Value: $67,860
- Number of Franchises in Quartile: 10
- Number and Percentage Meeting or Surpassing Average: 3 (30.0%)
- Number and Percentage Meeting or Surpassing Median: 5 (50.0%)
Second Quartile
- Average Contract Value: $55,357
- Median Contract Value: $53,230
- Number of Franchises in Quartile: 9
- Number and Percentage Meeting or Surpassing Average: 4 (44.4%)
- Number and Percentage Meeting or Surpassing Median: 5 (55.6%)
Third Quartile
- Average Contract Value: $40,799
- Median Contract Value: $41,469
- Number of Franchises in Quartile: 9
- Number and Percentage Meeting or Surpassing Average: 6 (66.7%)
- Number and Percentage Meeting or Surpassing Median: 5 (55.6%)
Bottom Quartile
- Average Contract Value: $23,843
- Median Contract Value: $26,666
- Number of Franchises in Quartile: 9
- Number and Percentage Meeting or Surpassing Average: 5 (55.6%)
- Number and Percentage Meeting or Surpassing Median: 5 (55.6%)
- “Contract Value” is the dollar value of the selling price of each contract.
- The figures reflected in the charts above were compiled from unaudited information reported to DreamMaker by its franchisees.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.
Section VI – DreamMaker Bath & Kitchen Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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