Kitchen Solvers Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$100,000

-

$134,000

OPERATING PROFIT

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Adam

Updated

February 27, 2024

Is

Kitchen Solvers

a franchise?

Yes,
Kitchen Solvers
is a franchise and
currently
accepts
franchise
applications

Kitchen Solvers is a distinguished name in the kitchen remodeling industry, having established itself as a premier franchise since its inception in 1982. Founded as a home-based business, the company has grown significantly over the past four decades, now boasting a legacy of remodeling over 50,000 kitchens. This impressive growth is rooted in its commitment to delivering a "Pleasant Remodeling Experience," a promise that has become the cornerstone of its service offering.

Headquartered in the United States, Kitchen Solvers embarked on its franchising journey in 1982 to extend its reach and empower entrepreneurs with a passion for home improvement. The franchise model is designed to support partners with comprehensive tools and resources, ensuring operational efficiency and profitability. The franchise boasts a robust vendor management program that grants access to a vast array of quality products, materials, and services, setting it apart from the competition by offering unparalleled craftsmanship and customer service.

What truly distinguishes Kitchen Solvers in the competitive landscape is its customer-centric approach. The franchise prides itself on not engaging in high-pressure sales tactics, instead opting for a consultative approach that prioritizes understanding and addressing the unique needs and concerns of each customer. This philosophy extends to the treatment of franchise partners, whom Kitchen Solvers supports with a hands-on approach, providing them with the necessary tools to succeed

How many

Kitchen Solvers

franchises

are there?

In 2022, there were
52
outlets in the United States, of which
52
are franchises, and
0
are corporate-owned.

What are the

Kitchen Solvers

franchise

fees?

Initial franchise fee

$60,000

Royalty fee

2.5% - 6%

Advertising fee

1% +$2,000 per month

Initial Franchise Fee

The initial franchise fee for Kitchen Solvers is $60,000, which is recognized over the life of the franchise agreement, typically 10 years​​.

Technology Fee

Franchisees pay $264 per month for access to CRM, advertising, email, and reporting systems.

Royalty Fee

The Royalty Fee is greater of the Monthly Minimum Fee or a percentage of monthly Gross Sales, starting from 6% for sales up to $50,000 to 2.5% for sales over $275,001.

Brand Fund Fee

Equal to 1% of Gross Sales, with the possibility of an increase upon 30 days’ notice.

Transfer Fee

A $5,000 fee is required at the time of transfer, plus any broker referral fees if applicable.

Local Marketing

Franchisees must spend $24,000 annually, with a minimum of $2,000 each month on local marketing.

How much does

it cost

to start a

Kitchen Solvers

franchise?

It costs between
$100,000
and
$134,000
to start a
Kitchen Solvers
franchise.
Type of Expenditure Amount
Initial Franchise Fee $60,000
Pre-Opening Training $1,200 to $2,500
Supplies Package $7,575
Local Marketing $6,000
Rent/Leasehold Improvements (Showroom) $0 to $4,500
Office Equipment & Computer System $0 to $3,500
Vehicle $0 to $2,100
Vehicle and/or Trailer Wrap $1,800 to $2,500
Insurance Premiums $1,500 to $4,000
Utility Deposits and Business Licenses $100 to $750
Attorney’s Fees $500 to $1,000
Bookkeeping Tech Fees $50 to $125
Accounting Fees $750 to $1,500
Back Office Expenses $0 to $450
Installation Tools $0 to $7,250
Technology Fees $264
Additional Funds (3-month period) $20,000 to $30,000
TOTAL $99,739 to $134,014

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Kitchen Solvers

provide

training

to its

franchisees?

Yes,
Kitchen Solvers
provides training to its franchisees.

Kitchen Solvers provides comprehensive training for franchisees, which includes:

  1. Pre-Opening Training Program: Mandatory for franchisees and any approved manager. The program covers various subjects, including introduction, history, core values, franchise vision plan creation, products, services, vendors, advertising, marketing, sales, a day in the life, product engineering, ordering, management, software use, financials, human resources, and refacing training. The training consists of 70 hours of classroom training and 22 hours of on-the-job training, all conducted in La Crosse, Wisconsin.
  2. Ongoing Support and Training: Kitchen Solvers may require new installers hired during the term of the Franchise Agreement to complete a day of training. The franchisee is responsible for the salary, benefits, travel costs, and a daily training fee for the new installer. Additionally, Kitchen Solvers sponsors at least one annual convention that all franchisees are required to attend, and may charge a fee for attendance. Ongoing support training is provided as deemed necessary by the franchisor.
  3. In-Field Training: Upon request and agreement, Kitchen Solvers offers in-field training at their current rate, further supporting franchisees in their operations.

Does

Kitchen Solvers

provides

territory

protection?

Kitchen Solvers grants franchisees the right to operate within a specific territory, with territorial boundaries defined by county lines, highways, streets, or zip codes. A standard territory consists of a maximum of 80,000 owner-occupied households. However, franchisees may acquire additional contiguous zip codes, expanding their territory up to a maximum of 110,000 owner-occupied households, subject to an Additional Population Fee.

During the term of the Franchise Agreement, Kitchen Solvers will not establish a company-owned business or another franchise within the franchisee's territory or modify the territory without the franchisee's written permission, provided the franchisee complies with the terms and conditions of the Franchise Agreement. The franchisee's territory is not contingent upon achieving any specific sales volume or market penetration.

Franchisees are not permitted to operate their business outside of their designated territory without obtaining prior written consent from Kitchen Solvers. Additionally, franchisees may not engage in marketing, including via the Internet or other direct marketing methods, targeting areas outside their territory without Kitchen Solvers' prior written approval. Marketing efforts directed to the franchisee's territory but reaching beyond are permissible, provided the content is approved by Kitchen Solvers before use​​​​.

Can a

Kitchen Solvers

franchise

be run as

a passive

investment?

Kitchen Solvers requires franchisees to be actively involved in the management and operation of their business. If the franchisee is an individual, they must directly supervise and manage the business within their territory. For corporations, partnerships, or other business entities, a designated individual must be appointed in writing to directly supervise and manage the operations.

This individual must complete the franchisor's training program and may be required to sign a confidentiality and non-compete agreement. Even if the designated manager does not have an ownership interest in the franchise entity, their active involvement in day-to-day operations is mandatory​​.

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