Kitchen Tune Up
Kitchen Tune Up offers on-site kitchen renovation services including cabinet repair, painting, and replacement, as well as countertops and flooring installation. Known for its comprehensive home improvement solutions, it operates in the home services franchise industry.
Kitchen Tune Up franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operating a KITCHEN TUNE-UP ® franchised business ranges from $121,930 to $198,850, which includes $79,950 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is a fixed amount of $19,950 that must be paid in full upon signing the franchise agreement. This fee is nonrefundable and includes initial training and the Start-Up Package [p.86, p.97, p.20, p.13].
What are the ongoing royalty and advertising fees?
Ongoing royalties include both variable royalties, based on a percentage of sales generated by the franchisee, and fixed rate royalties, which are flat fees due monthly. These fees are uniformly imposed and non-refundable [p.17]. Advertising expenses are expensed when incurred and included in Selling and advertising expenses on the Consolidated Statements of Operations [p.185].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the renewal process beyond mentioning that a month-to-month basis may apply if no new agreement is signed before the initial term expires [p.91].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can renew or transfer your franchise agreement, but these actions are subject to the terms specified in the franchise agreement [p.174]. The fees for such actions are determined at the time of execution of the renewal or transfer agreement and are related to existing franchisees renewing their agreements or transferring their territories [p.174].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts only detail termination rights for the franchisee and do not specify grounds for termination by the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does mention that if a franchisee is not an individual, they must be duly incorporated or organized and qualified to do business in the territory [p.150, p.128, p.72], but it doesn't provide specific net worth or liquid capital requirements.
Do I get an exclusive or protected territory?
Yes, you are provided with a protected territory where the company promises not to establish another Franchised Business that sells and installs Kitchen Improvements using their System and Marks. However, this protection is not absolute as there is no guarantee against other franchisees breaching their agreements [p.32]. Additionally, your territory will remain stable in terms of ZIP codes, even if USPS boundaries change or population shifts occur [p.32].
What training and ongoing support does the franchisor provide?
The franchisor provides a classroom and practical training program conducted 4 times per year, depending on demand [p.31]. Additionally, new franchisees must comply with training requirements set forth in the Franchise Agreement by attending the next available training program offered by the franchisor for new franchisees [p.209]. This ensures that all franchisees are adequately prepared to operate their businesses effectively.
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide the total number of franchised outlets. However, it states that during the last three years, 66 outlets were terminated, not renewed, reacquired, or ceased operations for other reasons [p.4].
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information under certain conditions, as detailed in [p.40]. However, the company does not make any financial performance representations beyond what may be included in Item 19 of the FDD, and it does not authorize its employees or representatives to make such representations either orally or in writing, except for providing actual records of an existing outlet when purchasing one, as mentioned in [p.43].
What am I restricted to selling, and where must I buy supplies?
You are required to sell Kitchen Improvements in the Territory as per the system and using the goodwill associated with the Marks. You must purchase products only from the franchisor and its affiliates, partnership vendors, or approved vendors [p.98]. This includes samples, marketing materials, and other necessary items for selling Kitchen Improvements [p.98].