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Kitchen Tune-Up Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a Kitchen Tune-Up Franchise?
To open a Kitchen Tune-Up franchise, you need to prepare for an initial investment ranging from $129,930 to $188,850. This includes a franchise fee of $19,950. Additionally, you should have a net worth between $150,000 and $500,000, along with cash available to cover the total investment. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for this business opportunity.
What Are the Financial Performance Metrics for Kitchen Tune-Up Franchisees?
Kitchen Tune-Up franchisees can expect an average annual revenue of approximately $503,133, with a median revenue of $428,254. The highest reported annual revenue per unit is $1,979,323, showcasing the potential for significant earnings. With a breakeven time of just 12 months and an investment payback period of the same duration, this franchise offers a promising financial outlook for dedicated operators.
What Are the Ongoing Fees Associated with a Kitchen Tune-Up Franchise?
Franchisees are required to pay a royalty fee of 7% on their gross revenue, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand presence and marketing efforts, which can help drive customer traffic and sales. Understanding these costs is vital for managing the financial health of your franchise and ensuring long-term profitability.
How Has Kitchen Tune-Up Expanded in Recent Years?
Kitchen Tune-Up has shown impressive growth, expanding from 0 franchised units in 2021 to 270 in 2022 and slightly increasing to 274 units in 2023. This growth demonstrates the brand's increasing popularity and market presence, making it an attractive option for potential franchisees looking to join a successful and expanding network.
Kitchen Tune-Up Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Kitchen Tune-Up Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 0 | 270 | 274 |
| Net Change YoY | 270 | 4 | |
| Franchised Units | 0 | 270 | 274 |
| Net Change YoY | 270 | 4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Kitchen Tune-Up franchise offers a low initial investment ranging from $129,930 to $188,850. This includes a franchise fee of $19,950, making it accessible for aspiring entrepreneurs looking to enter the home improvement sector.
Financial Performance
Franchisees can expect an average annual revenue of $503,133, with a median annual revenue of $428,254. The potential for high earnings is evident, as the highest reported annual revenue per unit reaches $1,979,323, showcasing the brand's profitability.
Royalty and Marketing Fees
Kitchen Tune-Up franchisees pay a royalty fee of 7% on gross sales, along with a marketing fee of 1%. These fees contribute to the overall brand presence and support franchisee success through marketing initiatives.
Breakeven and Payback
Franchisees can anticipate a breakeven time of just 12 months. This quick turnaround on investment payback indicates a strong business model that can yield positive cash flow relatively soon after opening.
Franchise Growth
The franchise has demonstrated significant growth, with 270 units in 2022 and 274 units in 2023. This upward trend reflects the brand's expanding market presence and increasing popularity among consumers.
Operational Insights
Average operating expenses amount to approximately $11,649,947, with selling and advertising costs being a significant portion. Understanding these expenses is crucial for franchisees to manage their financial performance effectively.
Frequently Asked Questions
The initial investment for a Kitchen Tune-Up franchise ranges from $129,930 to $188,850, which includes the franchise fee of $19,950.