Own A Design Studio
If you are a proven, passionate interior designer, home improver or finish carpenter, skilled at project management, possess drive to succeed, and yearn for the control and flexibility that comes with running your own business, then becoming an independent owner and operator of a Kitchen Refresh Design Studio may just be the perfect fit.
Is there market demand for Kitchen Refresh?
Our kitchen, bath and related remodels are a budget-friendly alternative that utilizes a homeowner’s existing cabinetry and are typically up to 75% less than custom cabinetry - installed! Our makeovers typically take just 1-5 days, rather than 2-5 months, and deliver stunning results! Because of the price point, the speedy process and the outcome, we have high client satisfaction and quickly achieve market momentum. Nationwide, according to data from the Leading Indicator of Remodeling Activity (LIRA), homeowners spent $324 billion just in the second quarter of 2018 alone on residential remodeling. That represents an increase of $54 billion compared to two years ago, or a 20 percent growth rate.
Am I a good fit?
Franchisees typically have an interior design, home improvement, construction, carpentry or related home services background. Owner couples with those combined backgrounds and skills can be an especially good fit as one person handles the design side and the other handles the painting and/or installation side of the business, which can then drive two or three profit sources for the franchise. The most common structure, however, is an interior designer franchisee who uses subcontractors for installations, custom work, and painting - this frees up your time to focus on consultations and selling. Kitchen Refresh can be ideal for an interior designer who wants to embark on their own venture but is nervous about taking that leap, or for an existing interior designer who already has their own business. By starting with or adding a Kitchen Refresh franchise, it can provide the stability while you build complementary aspects of your interior design business.
What investment is needed?
Kitchen Refresh has one of the most reasonable franchise startup costs available! Potential franchisees should have sufficient financial resources for a $35,000 franchisee fee, $6,000-$15,000 for startup costs, 4-8 months of cash resources to cover personal income needs during the startup phase, as well as financial resources to cover fixed costs that accompany a small design studio space of around 250-500 sq. ft., such as rent, utilities, etc.
What are common sources of financing the franchise?
Financing resources may include one or some of the following: Savings, a conventional business loan, SBA loan, retirement funds such as 401k, IRA or pension, and a home equity loan. We require at least $15,000 of the franchise fee to begin your franchise, the remaining balance can be financed interest free under terms and conditions set forth and agreed upon by Kitchen Refresh, Inc. and the franchisee.
What is the role of the owner?
In addition to basic daily responsibilities of running a business, design franchisees follow up on leads, perform 30-60 minute by-appointment-only design consultations in the design studio, and project manage the makeovers (i.e., schedule painters and installers, countertop measuring and installations as necessary, etc.). Because the design studios are by-appointment-only, it enables franchisees to operate an accommodating, flexible schedule that fits their family life, scheduling around time that you want free (while also making sure you are accommodating the scheduling needs of clients, of course).
What does startup look like?
The franchisee would help identify a suitable design studio space, and secure installer and painter contractors, and job manage the studio buildout that would take place over a 30-day or less period. Because the studio is by appointment only, along with monthly showcase events, franchisees can often continue to work their current job at first, while setting up design consultations on evenings and weekends, as they manage and grow the franchise.
What is the earning potential?
At maturity, which can be achieved in as little as 12-24 months, an average franchisee should generate $350,000 in total annual revenue from direct Kitchen Refresh products, and an additional $300,000 - $500,000 on the up-sold and cross-sold items performed by other contractors (plumbing, electrical, countertops, flooring, appliances, etc.). The merchandise margin on Kitchen Refresh products is 25%, and a 35% margin is achievable by also performing the door and drawer installation rather than subcontracting them. A 5-25% margin can be earned on the up-sold and cross-sold items.
What does Kitchen Refresh provide?
Every successful franchise is built around a system. With Kitchen Refresh, our system entails 1) An easy pricing and estimating system that takes into account your product and labor costs and prices to insure profitability, 2) Providing custom-made door and drawer products along with a fast installation method, 3) Modern and traditional marketing efforts and programs to help franchisees attract, nurture and develop leads.
Why choose Kitchen Refresh?
Here are the Top 11 Reasons to become a Kitchen Refresh franchise owner:
1) Reasonable initial investment: With an initial franchise fee of just $35,000, and no inventory to carry, Kitchen Refresh represents one of the most reasonable initial investments of this category. The only other primary startup investment is the design studio buildout, which has a small footprint of just 250-500 square feet, so the buildout is cost-effective.
2) Low ongoing costs: Kitchen Refresh franchisees do not pay royalties. Also, most locations do not have employees, and they don’t purchase or have inventory. This means fixed costs remain low.
3) Additional revenue opportunities: Sales from Kitchen Refresh product should only account for 40% of your total annual revenue. Another 60% is achievable by general contracting the makeover and earning income from countertops, backsplashes, floors and other home improvements.
4) We manufacture our own products: Because we manufacture our own doors and drawer fronts, we control the quality and also insure our franchisees aren’t paying for a middle-man markup.
5) It’s a proven business: Kitchen Refresh continues to expand and grow into new markets with our proven products and proven business model.
6) Wide target audience: Because of our price point, coupled with our beautiful results, Kitchen Refresh has been the method of choice selected by property owners ranging from rental unit owners/managers to high end homes, and everything in-between.
7) All orders are prepaid: One of the major factors causing business closures is cashflow problems. With Kitchen Refresh, an order does not begin until it’s paid in full by the client.
8) Quick project completion: Unlike many construction industry businesses where projects can go on for months and months, with Kitchen Refresh, most transformations are completed in just 1-5 days from start to finish. This allows a franchisee to have a high completion rate, finishing more projects at a strong profit margin.
9) Innovation: Kitchen Refresh continues to innovate new product and service solutions to help drive additional sales opportunities.
10) Flexible lifestyle: Because of the by-appointment-only structure of the design studio, you’re not stuck in an office or retail setting waiting for a client to come by. You establish the days and times to be at the studio to meet clients.
11) Income potential: With Kitchen Refresh, complete just 8 average kitchen jobs a month - not including any up-selling or cross-selling - and the cashflow earned would be $11,600 per month, or $139,200 annually. This figure is calculated based on the amounts billed to the customer minus amounts paid to Kitchen Refresh for the product and paid to the vendors for painting and installation.
To get started on securing your franchise territory, complete the franchise inquiry form on this page today!
Currently seeking franchisees for the following markets:
We're currently seeking talented and driven franchisees for these market areas:
Des Moines, Iowa (2 territories available)
Cedar Rapids, Iowa
Sioux City, Iowa (pending; franchisee pledge in process)
Omaha, Neb., (pending; franchisee pledge in process)
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