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

INVESTMENT

$108,000

-

$147,000

OPERATING PROFIT

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Adam

Updated

February 27, 2024

Is

Kitchen Wise

a franchise?

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

Kitchen Wise, founded in 2016 and franchising since 2017, offers a unique opportunity in the home organization industry. Headquartered in Charlottesville, VA, Kitchen Wise specializes in providing intelligent solutions to declutter and efficiently organize homes, extending beyond kitchens to pantries, bathrooms, closets, and more. 

This franchise presents a promising venture for both experienced business professionals and self-motivated entrepreneurs, with no construction or industry experience required. Franchisees benefit from comprehensive training, access to premium products exclusive to Kitchen Wise, and support from a franchise system that emphasizes minimal competition and a proven business model backed by over a decade of experience.

The franchise operates with a home-based business model, which ensures low overhead costs and the potential for quick scalability. Kitchen Wise's affiliation with Premium Service Brands further enhances its franchise offering, providing franchisees access to a wealth of industry knowledge, training, and support systems designed for long-term success in the growing $450 billion home organization industry.

For those looking to step into a niche market with considerable growth potential and little competition, Kitchen Wise represents an attractive option. The franchise's focus on quality service, customer satisfaction, and innovative home organization solutions positions it as a leader in the home improvement sector​​​​​​.

How many

Kitchen Wise

franchises

are there?

In 2022, there were
11
outlets in the United States, of which
11
are franchises, and
0
are corporate-owned.

What are the

Kitchen Wise

franchise

fees?

Initial franchise fee

$65,000

Royalty fee

6.0%

Advertising fee

2.0%

Initial Franchise Fee

The initial franchise fee is set at $65,000, which is due upon signing the franchise agreement.

Royalty Fee

Franchisees are required to pay a royalty fee, which is the greater of 6% of Gross Sales or $150 per week.

Advertising Fee

An advertising fee of 2% of Gross Sales is imposed on franchisees to contribute towards marketing efforts.

Technology Fee

A one-time technology fee of $5,000 is due upon signing, followed by a weekly fee starting at $120 in the first year and increasing in subsequent years.

Lease or Rent Fee

The estimated lease or rent fee ranges from $0 to $3,000, which is expected to be arranged before the franchise opens.

Renewal Fee

For renewing the franchise agreement, the fee is 25% of the then-current franchise fee or $15,000, whichever is greater.

How much does

it cost

to start a

Kitchen Wise

franchise?

It costs between
$108,000
and
$147,000
to start a
Kitchen Wise
franchise.
Type of Expenditure Amount
Franchise Fee $65,000
Vehicle $1,500 - $5,000
Real Estate and/or Leasehold Improvements $0 - $3,000
Equipment & Supplies $3,000-$6,500
Insurance $2,000 - $5,000
Signage $3,000 - $4,000
Technology Fee $5,000
Grand Opening $2,500 - $5,000
Training Expenses $2,000 - $4,000
Licenses/Bonds $100 - $1,500
Professional Fees $1,500 - $3,000
Additional Funds (3 months) $22,500 - $40,000
Total $108,100 – $147,000

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 Wise

provide

training

to its

franchisees?

Yes,
Kitchen Wise
provides training to its franchisees.

The franchisor provides a comprehensive training program for franchisees, covering various aspects essential for operating the franchise. Here's an overview of the training provided:

Initial Training

  • Participants: Franchisee (or its principal owner) and the Manager must attend.
  • Completion: The training must be successfully completed to the franchisor's satisfaction before the business can open.
  • Deadline: Training must be completed no later than three months after the agreement's effective date.
  • Fees: No charge for up to two individuals, but franchisee covers costs like transportation, lodging, meals, and incidentals.
  • Requirement: The business must always be operated by someone who has completed this program.
  • Flexibility: The franchisor reserves the right to waive parts of the training at their discretion.

Employee Training

  • The franchisee is responsible for implementing and conducting an approved training program for their employees, ensuring they are qualified for their roles according to the franchisor's standards.

Additional Training

  • Additional representatives can attend the initial training if space allows and with prior notice, with all related expenses covered by the franchisee.
  • Franchisee, managers, and employees must attend any additional training programs deemed necessary by the franchisor, covering updates and changes in operations or the system.

Does

Kitchen Wise

provides

territory

protection?

The franchisor offers a form of territorial protection to franchisees, but it's important to understand the specifics and limitations of this protection:

  • Protected Territory: Franchisees are granted a protected territory, described by ZIP Codes, which will include between fifty thousand (50,000) to eighty thousand (80,000) single family dwellings. If ZIP Codes within the protected territory are modified, the franchisor may adjust the territory accordingly, which could result in a change in the number of included dwellings or the geographic area covered​​​​.
  • No Exclusive Territory: Franchisees do not receive an exclusive territory. They may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor​​.
  • Territorial Protection: Subject to certain conditions, the franchisor agrees not to establish or license others to establish and operate a business providing system services to residential or "light commercial" customers within the protected territory using the marks or the system. However, this does not include actual or prospective customers designated as National Accounts​​.

Can a

Kitchen Wise

franchise

be run as

a passive

investment?

The franchisor requires significant involvement from franchisees in the day-to-day operations of their franchises.The franchise business must always be under the direct, on-premises, full-time supervision of a Designated Manager. This manager can be the franchisee if they are an individual, or someone the franchisee selects if they are a business entity​​.

The Designated Manager must meet the franchisor's standards and satisfactorily complete the franchisor's initial training program before the business opens. This ensures that the manager is well-equipped to oversee the daily operations according to the franchisor's guidelines​​.

The franchisee is solely responsible for recruiting, interviewing, hiring, scheduling, supervising, and, if necessary, firing their personnel. Franchisees are expected to comply with all applicable laws and regulations affecting the business. They must also provide periodic financial and operational reports to the franchisor, following the franchisor's specified format and schedule​​​​.

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