In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Kitchen Wise franchise, based on Item 7 of the company’s 2025 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Kitchen Wise franchise, based on Items 5 and 6 of the company’s 2025 FDD
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Section IV – News updates on the Kitchen Wise franchise opportunity
Section V – Presentation and analysis of Kitchen Wise’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:
- 2024 fiscal year unit gross sales, unit average job size, and unit sales per customer served for the 3 Kitchen Wise franchisees who operated their franchised businesses for the entire 2024 fiscal year
- 2024 fiscal year average job size and percentage of gross sales for all jobs by service offerings (closet, kitchen, and other) submitted through Kitchen Wise’s CRM by the 3 Kitchen Wise franchisees who operated their franchised businesses for the entire 2024 fiscal year
Section VI – Key ratios, comparables, computations, and analyses for the Kitchen Wise franchise opportunity (exclusive content for Platinum subscribers)
Section I – Kitchen Wise Franchise Costs
- Kitchen Wise franchise costs, based on Item 7 of the company’s 2025 FDD:
- Franchise Fee: $65,000
- Vehicle: $1,500 to $5,000
- Real Estate and/or Leasehold Improvements: $0 to $3,000
- Equipment and Supplies: $3,000 to $6,500
- Insurance: $2,000 to $5,000
- Signage: $3,000 to $4,000
- Technology Fee: $5,000
- Grand Opening: $2,500 to $5,000
- Training Expenses: $3,000 to $5,000
- Licenses/Bonds: $100 to $1,500
- Professional Fees: $1,500 to $3,000
- Designated Manager Salary: $0 to $30,000
- Marketing: $10,000 to $20,000
- Additional Funds (6 months): $22,500 to $40,000
- Total Estimated Kitchen Wise Franchise Costs: $119,100 to $198,000
Section II – Kitchen Wise’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Kitchen Wise’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:
- Franchise Fee: $65,000
- Royalty: 6% of Gross Sales; $150 per week, minimum
- Marketing Fund Contribution: the greater of 2% of Gross Sales per week or $50 per week
- Advertising Cooperative Fee: up to $10,000 or 2% of Gross Sales per year, whichever is greater
Section III – Number of Franchised and Company-Owned Kitchen Wise Outlets
Franchised
2022
- Outlets at the Start of the Year: 24
- Outlets at the End of the Year: 8
- Net Change: -16
2023
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 6
- Net Change: -2
2024
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- Outlets at the End of the Year: 7
- Net Change: +1
Company-Owned
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2024
- 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 Wise Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Kitchen Wise Franchise (Item 19, 2025 FDD)
- During its 2024 fiscal year, Kitchen Wise had 3 total Franchised Businesses open and operating the entire fiscal year by 3 franchisees.
- These 3 franchisees and their 3 Franchised Businesses reported Gross Sales totaling $1,704,362 during Kitchen Wise’s 2024 fiscal year in connection with their calculation and payment of Royalties.
- Gross Sales is defined in this analysis as it is in the Franchise Agreement.
- This analysis excludes 4 franchisees operating 4 Franchised Businesses that either (1) were not open the entire fiscal year because they either began operating or ceased operating during Kitchen Wise’s 2024 fiscal year or (2) are not currently using Kitchen Wise’s customer relationship manager software (CRM) in a manner for Kitchen Wise to collect and disclose the below financial performance information.
Part 1 – 2024 Fiscal Year Actual Gross Sales by Franchised Business/Franchisee for the 3 Franchisees and Their 3 Franchised Businesses
Unit 1
- Unit Gross Sales: $1,044,186
- Unit Average Job Size: $3,312
- Unit Sales Per Customer Served: $3,649
Unit 2
- Unit Gross Sales: $544,433
- Unit Average Job Size: $4,376
- Unit Sales Per Customer Served: $4,715
Unit 3
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- Unit Average Job Size: $4,145
- Unit Sales Per Customer Served: $4,767
- Total Gross Sales: $1,704,362
- Average Gross Sales: $568,121
- Median Gross Sales: $544,433
Part 2 – 2024 Fiscal Year Average Job Size and Average Job Size as a Percentage of Gross Sales by Service Type for All Jobs That Were Submitted Through Kitchen Wise’s Customer Relationship Manager Software (CRM) by the 3 Franchisees and Their 3 Franchised Businesses
- Service types are described in 3 distinguishable service offerings: Closet, Kitchen, and Other.
Closet
- Average Job Size: $5,170.36
- Percentage of Gross Sales: 52.95%
Kitchen
- Average Job Size: $2,666.12
- Percentage of Gross Sales: 45.45%
Other
- Average Job Size: $6,883.04
- Percentage of Gross Sales: 1.60%
- Jobs in this table reflect 100% of the total $1,704,362 reported by the 3 franchisees and their 3 Franchised Businesses during Kitchen Wise’s 2024 fiscal year.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.
Section VI – Kitchen Wise Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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