Kitchen Tune-Up Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$130,000

-

$189,000

OPERATING PROFIT

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Adam

Updated

February 27, 2024

Is

Kitchen Tune-Up

a franchise?

Yes,
Kitchen Tune-Up
is a franchise and
currently
accepts
franchise
applications

Kitchen Tune-Up is an established kitchen renovation franchise that has been turning homeowners' dreams into reality since its inception in 1988. Founded by Dave and Cindy Haglund, the franchise has grown from a single innovative idea into a national brand known for its comprehensive kitchen remodeling services. With a focus on minor yet impactful improvements, Kitchen Tune-Up offers services such as cabinet painting, cabinet refacing, and the signature One-Day Tune-Up, among others.

This range of services caters to various customer needs, from simple refreshes to complete kitchen overhauls​​​​. Kitchen Tune-Up began franchising in 1988, the same year it was founded and the company's headquarters are located in Aberdeen, South Dakota. The franchise provides a low-overhead, scalable business model that can be run from a home-based office or a retail location.

Franchisees benefit from a proven system of operations and robust training programs, requiring no previous experience in remodeling or woodwork. This comprehensive support system is designed to ensure franchisees are well-prepared to manage and grow their businesses effectively​​.

Kitchen Tune-Up stands out in the competitive home improvement market through its emphasis on affordable and convenient kitchen updates. This focus on minor improvements positions the franchise uniquely within the broader industry, ensuring a steady demand for its services regardless of economic fluctuations. The franchise's success is further bolstered by its parent company, Home Franchise Concepts®, which provides additional stability and resources. With over 35 years of experience, Kitchen Tune-Up continues to offer lucrative opportunities for entrepreneurs looking to tap into the ever-growing home improvement sector​​.

How many

Kitchen Tune-Up

franchises

are there?

In 2022, there were
253
outlets in the United States, of which
253
are franchises, and
0
are corporate-owned.

What are the

Kitchen Tune-Up

franchise

fees?

Initial franchise fee

$19,950

Royalty fee

5.5%

Advertising fee

1.0%

Initial Franchise Fee

Franchisees will pay an Initial Franchise Fee of $19,950, receiving the Start-Up Package upon full payment. This fee is payable in a lump sum and is non-refundable.

Territory Fee

If purchasing the Territory directly from the Franchisor, a Territory Fee of $60,000 is payable in a lump sum. This fee is also non-refundable.

Continuing Royalty

Franchisees is required to pay a Continuing Royalty, with the specific amount and terms detailed in the franchise agreement.

National Advertising Fee

A National Advertising Fee is imposed, with specifics provided in the franchise agreement.

Technology Fee

A monthly Technology Fee is charged to cover costs associated with operating, upgrading, and supporting the Franchisor’s technology platforms. The fee amount is specified in the Manuals and is subject to change.

Convention Fee

Franchisees must pay a Convention Fee to attend the annual or periodic Franchisor convention. The fee amount varies based on the location and is payable in advance.

Renewal Fee

A Renewal Fee of $5,000 is applicable when signing a renewal franchise agreement.

Transfer Fees

Fees apply when transferring the franchise, with the amount depending on whether the buyer is a new or existing franchisee. The fee can range up to a maximum of $50,000.

How much does

it cost

to start a

Kitchen Tune-Up

franchise?

It costs between
$130,000
and
$189,000
to start a
Kitchen Tune-Up
franchise.
Type of Expenditure Amount
Initial Franchise Fee $19,950
Initial Territory Fee $60,000
Travel and Living Expenses While Training $1,750 - $3,000
Office/Work Space $500 - $3,000
Vehicle $7,000 - $30,000
Credit Card Processing Technology $30 - $500
Miscellaneous Tools and Office Supplies $1,000 - $3,000
Miscellaneous Opening Costs $2,000 - $3,500
Lead Safe Certification $300 - $500
Contractor’s License and Bond $150 - $1,500
Auto Insurance $1,000 - $3,000
Commercial General Liability Insurance $500 - $2,400
Professional Fees $750 - $3,500
Initial Marketing – 3 months $15,000 - $25,000
Additional Funds – before opening and first three months $20,000 - $30,000
Total $129,930 - $188,850

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 Tune-Up

provide

training

to its

franchisees?

Yes,
Kitchen Tune-Up
provides training to its franchisees.

The franchisor provides a comprehensive training program to franchisees, which includes a blend of classroom and practical instruction. 

Initial Training Overview

The training covers the technical aspects of operating the franchised business, basic business operating procedures, basic sales and marketing techniques, and other topics as determined by the franchisor. This program is designed to educate, familiarize, and acquaint franchisees with business operations.

Attendance

The Initial Training Program is mandatory for two management representatives of the franchisee, aimed at ensuring they are well-prepared to manage the franchised business effectively. This program includes a "Four Week Pre-Training Program" and a "Twelve Week Post-Training/Mentor Program," which are intended to reinforce and supplement the initial training.

Ongoing Support

In addition to the initial training, the franchisor provides ongoing support and may offer additional training courses, seminars, conferences, or other programs as deemed necessary. This could include staff training courses for which the franchisor may charge a reasonable fee. Franchisees are responsible for their travel, hotel, and meal expenses during these training sessions.

On-site Assistance

The franchisor also offers on-site assistance if requested by the franchisee, which may be provided at the franchisor's then-current training fee plus expenses. This assistance is subject to the availability of the franchisor's personnel and is at the franchisor's discretion.

Does

Kitchen Tune-Up

provides

territory

protection?

The franchisor does provide territory protection for franchisees, with territories typically defined by United States Postal Service ZIP Codes. Each franchisee's territory is initially set to include approximately 41,000 households, and the franchise agreement specifies that the franchisor will not establish another franchised business within this protected territory that sells and installs products using the franchisor's system and trademarks. 

However, franchisees are also warned that this does not guarantee that another franchisee will not breach their agreement and conduct business within their territory​​.

Additionally, franchisees are allowed to operate within unassigned territories, known as "Gray Area," which adjoin their designated territory. However, operations in these Gray Areas are subject to certain conditions, such as the sale of the territory to another franchisee or the initiation of company-owned operations within these areas​​.

Can a

Kitchen Tune-Up

franchise

be run as

a passive

investment?

The franchisor prefers franchisees who plan to actively participate in the direct operation and daily affairs of the franchised business and does not aim to grant franchises to those seeking merely a passive investment. If a franchisee does not operate the business themselves, they must employ at least one full-time manager.

This manager does not need to have an equity interest in the franchisee's company but must complete the franchisor's initial training program. The manager is expected to devote their entire time during normal business hours to the management, operation, and development of the franchised business while maintaining the confidentiality of trade secrets​​.

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