If you’re thinking about starting a Kitchen Remodeling Franchise, this introductory cost analysis is for you. Read on for an expense walk through to learn whether joining the Kitchen Solver’s family fits your budget and business goals.
Pre-Opening Start-up Costs for your Kitchen Remodeling Franchise
- First, you’ll need to cover your initial franchise fee. This lump sum payment is made directly to the franchisor upon execution of your Franchise Agreement. The franchise fee gets you access to all the benefits of the brand, covers a portion of your training costs, and is used to fund many of the support services you’ll use to get started. The total amount is $35,000.
- Next, you’ll need to cover the ancillary costs of training. Though the cost of your actual training is included in the franchise fee, you will still need to pay for any travel, living expenses, and meals needed while the program is underway. The total amount will depend on the individual, but generally falls between $1000 and $2500.
- Don’t forget basic office overhead! Every business owner will need to set money aside for rent and leasehold improvements, but this is especially true for kitchen remodeling franchise owners who rely on showrooms as part of the sales process. An office or showroom will cost $0-$1000 per month, paid directly to the landlord as incurred.
- Insurance premiums, utility deposits, and business licenses must be in order before you get started. Expect to pay $105 to $300 per month to your chosen insurance company. Utility deposits and business licenses will range $100 to $750 depending on the rates offered by third-party suppliers.
- Before you open your doors for business, you’ll need to buy our supplies package and furnish your office. Our supplies package will equip you with all you need to run your kitchen remodeling franchise. The total amount is $5100, paid directly to the franchisor.
Office and computer equipment will cost up to $2500, though this can be considerably less depending on your existing resources and ability to find deals with third-party suppliers.
- You’ll also need to invest in pre-opening advertising. This investment is crucial to announce your presence in the community. This fee should be paid 120 days after signing the Franchise Agreement. The total cost is $5000, which will cover your first home show to kickstart word of mouth and generate leads for your company.
Ongoing Costs for your Kitchen Remodeling Franchise
- Set aside a local marketing budget to support national branding campaigns and continue driving business your way. Advertising costs don’t end after your first home show. Rather than holding franchisees to a single, static fee, we individualize marketing costs to suit your specific goals and market profitability. To that end, we promote an ongoing marketing budget of 7-10% of yearly sales goals, divided up monthly with an emphasis on spending more during the busier seasons.
- Consider keeping an attorney on retainer. While operating your kitchen remodeling franchise, you may occasionally need to bring in a legal expert. Plan to spend $500 to $1000 in attorney’s fees as incurred.
- Upgrading your installation tools. Some kitchen remodeling franchise owners can skip this cost entirely, but if you need an upgrade, expect to pay up to $4,635 to bring your tools up to speed.
- Additional display items. This is an optional expense. But should you choose to purchase additional display items, they can cost up to $4000.
- Reserve additional working capital! Don’t forget to keep additional funds on hand to pay for any unexpected costs that might arise. We recommend that kitchen remodeling franchise owners reserve working capital of $10,000 to $15,000.
Total Costs for your Kitchen Remodeling Franchise
The total amount you’ll need to start your Kitchen Remodeling franchise will fall between $59,060 and $79,040.
If you want a more detailed breakdown or need help with financing, visit http://www.kitchensolversfranchise.com.