Pi Kitchen Bath Shop
Pi Kitchen Bath Shop offers custom home improvement services including kitchen, bath, and basement renovations. Known for providing tailored design solutions, it operates in the interior and exterior living space remodeling industry.
Pi Kitchen Bath Shop franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operating a Pi Kitchen & Bath Shop franchise ranges from $196,800 to $429,000. For a conversion franchise, the range is from $88,350 to $97,000. This includes a mandatory payment of $68,500 to the franchisor or an affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee is $68,500 for one territory and is not refundable [p.10, p.50].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is three to six percent of Gross Revenue, depending on the tier applicable to the monthly Gross Revenue of the Franchised Business [p.50]. Additionally, Franchisee must spend a minimum of four percent of Gross Revenue or $4,000 per month on marketing activities in the Territory ('Local Advertising'), with this amount potentially increasing up to five percent annually based on cumulative Gross Revenue and other factors [p.63].
How long is the initial franchise agreement, and can I renew it?
The term length for the initial franchise agreement isn't specified in detail within these excerpts. However, you have the right to enter into up to two additional five-year terms through Successor Franchise Agreements, subject to certain conditions [p.48]. The exact duration of the initial term is not provided here.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires Franchisor's consent. You must pay a non-refundable Transfer Deposit of $5,000 and a transfer fee, which is 75% of the current initial franchise fee unless the transfer is to an existing franchisee in good standing (then it’s 50%), or if adding a business entity without changing management control, where the fee is just $1,500. [p.72]
On what grounds can the franchisor terminate the agreement?
According to [p.131], the franchisor may terminate the agreement on any grounds available by law. However, [p.134] notes that terminating a franchise without reasonable cause is unlawful under Virginia Retail Franchising Act Section 13.1-564, and provisions for termination must comply with this act's definition of 'reasonable cause.'
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor's most recent financial statements must show a net worth of at least $100,000 if they are unaudited. There is no specific mention of required liquid capital for franchisees in the provided excerpts. [p.6]
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.28]. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by them.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for up to 3 individuals as part of the initial franchise fee [p.18], which includes remote training through teleconference and/or web-based applications, and in-person training at their affiliate-owned outlet or another location they specify [p.26]. Additionally, ongoing support includes training and assistance for employees in operating the franchised business [p.105].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information based on actual records from existing outlets if requested by a franchisee. However, they do not make any financial performance representations other than providing historic representation based on the past performance of affiliate-owned businesses as specified in Item 19 [p.35]. Additionally, the franchisor does not authorize their employees or representatives to make such representations either orally or in writing [p.38].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all products and services that are part of the System, as well as any new services and products approved by the franchisor in the future. You may only offer products and services that have been previously approved by the franchisor [p.31]. For supplies, you must purchase certain equipment, inventory, supplies, and services from the franchisor's approved suppliers or according to their specifications [p.19].