In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a DreamMaker Bath & Kitchen franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a DreamMaker Bath & Kitchen franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned DreamMaker Bath & Kitchen outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the DreamMaker Bath & Kitchen franchise opportunity

Section V – Presentation and analysis of DreamMaker Bath & Kitchen’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2011-2023 average, median, highest, and lowest gross sales for the DreamMaker Bath & Kitchen franchisees that had been in operation for the full applicable calendar year

• 2023 average, median, highest, and lowest gross retail sales (by quartile and overall) for the 38 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2023 calendar year

• 2023 average, median, highest, and lowest gross profit margin (by quartile and overall) for the 37 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2023 calendar year and responded to the franchisor’s request for financial information

• 2023 average, median, highest, and lowest contract value (by quartile and overall) for the 37 DreamMaker Bath & Kitchen franchisees that had been in operation for the full 2023 calendar year and responded to the franchisor’s request for information

Section VI – Key ratios, comparables, computations, and analyses for the DreamMaker Bath & Kitchen franchise opportunity (exclusive content for Platinum subscribers)

Section I – DreamMaker Bath & Kitchen Franchise Costs

• Initial Franchise Fee:  $44,000 to $69,300, plus $220 per 1,000 additional population over the minimum
• Software Support Fee:  $3,995
• Vehicle:  $0 to $9,500
• Equipment, Supplies, and Inventory:  $30,390 to $34,390
• Insurance:  $7,500 to $10,000
• Initial Advertising and Promotional Deposit:  $36,000 to $48,000
• Refundable Continuing Education Fee:  $1,200
• Training, Travel, Lodging, and Food:  $4,000 to $7,500
• Deposits, Permits, and Licenses:  $0 to $2,000
• Real Estate:  $62,000 to $159,700
• Professional Fees:  $8,275 to $12,500
• Additional Funds for 9 to 12 Months (includes estimated personal living expenses for 6-12 months):  $18,000 to $101,250
• Refundable Design Center Deposit:  $5,000
• Total Estimated DreamMaker Bath & Kitchen Franchise Costs:  $222,860 to $466,835, plus any additional franchise fee

Section II – DreamMaker Bath & Kitchen’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $44,000 to $69,300, plus $220 per 1,000 additional population over the minimum

• Royalty Fee Standard:  3% to 7% of Gross Sales (roll-in: 3% to 4% of the “rolled-in” Gross Sales)

• Minimum Royalty Fee:  beginning (a) eight months after the parties execute the Franchise Agreement or (b) four months after your Start Date, whichever occurs first, through the end of the first anniversary year, you must pay a Royalty Fee of $250 per week. Beginning the week following the first anniversary of the date you and DreamMaker execute the Franchise Agreement, you must pay a Royalty Fee of $250 per week plus an additional $125 per week for each additional 100,000 in population over the minimum population of 200,000. Beginning the week following the second anniversary of the date DreamMaker executes the Franchise Agreement, you must pay a Royalty Fee of $500 per week plus an additional $250 per week for each additional 100,000 in population over the minimum population of 200,000. The population in your territory is subject to increase each January.

• Marketing, Advertising, and Promotion Fee (“MAP Fee”):  2% of Gross Sales for the first $1,000,000 of Gross Sales per year and 1% of Gross Sales for all sales which exceed $1,000,000 in one year. However, if you have an existing business which you “roll-in” to the franchise, DreamMaker will discount the MAP Fee to 1% of the “rolled-in” amount for a certain period of time.

• Minimum MAP Fee:  1% of Gross Sales “rolled in”

• Advertising Cooperative:  if a local or regional Cooperative is formed for a geographic area that includes your territory, you will determine the annual contribution in cooperation with the other members of the Cooperative. DreamMaker specifies that the maximum annual contribution to a Cooperative cannot exceed 2% of your Gross Sales.

• Required Advertising Spending:  the initial advertising and promotional deposit will cover the first year’s advertising spending requirement. During the second year, you must spend at least 5% of your annual Gross Sales, and during the third and each additional year, you must spend at least 3% of your annual Gross Sales.

Section III – Number of Franchised and Company-Owned DreamMaker Bath & Kitchen Outlets

Franchised

2021

• Outlets at the Start of the Year:  34
• Outlets at the End of the Year:  43
• Net Change:  +9

2022

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  42
• Net Change:  -1

2023

• Outlets at the Start of the Year:  42
• Outlets at the End of the Year:  42
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the DreamMaker Bath & Kitchen Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the DreamMaker Bath & Kitchen Franchise (Item 19, 2024 FDD)

Part 1 – Average, Median, Highest, and Lowest Gross Sales for Franchisees

• The following chart reflects average Gross Sales achieved by DreamMaker franchisees in calendar years 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, and 2023.

• In calculating these averages, DreamMaker included Gross Sales information only for the franchisees that had been in operation for the full calendar year, and excluded information about franchisees that began operating after January 1st or ceased operating before December 31st of the respective year.

• As reflected in the chart below, average Gross Sales for our franchisees increased from $495,524 in 2011, to $1,516,480 in 2023, representing 206.04% growth. Median Gross Sales for DreamMaker franchisees increased from $455,310 in 2011, to $1,088,948 in 2023, representing 139.17% growth.

• For purposes of this Item 19, “Gross Sales” is defined as cash received during the given time period. There are no deductions other than any refunds or credits given to a client.

2011

• Number of Franchisees That Operated for the Full Calendar Year:  43
• Average Gross Sales:  $495,524
• Number and Percentage Meeting or Surpassing Average:  17 (40%)
• Median Gross Sales:  $455,310
• Highest Gross Sales:  $1,605,687
• Lowest Gross Sales:  $11,727

2012

• Number of Franchisees That Operated for the Full Calendar Year:  38
• Average Gross Sales:  $583,583
• Number and Percentage Meeting or Surpassing Average:  14 (37%)
• Median Gross Sales:  $503,755
• Highest Gross Sales:  $2,156,458
• Lowest Gross Sales:  $54,977

2013

• Number of Franchisees That Operated for the Full Calendar Year:  34
• Average Gross Sales:  $700,967
• Number and Percentage Meeting or Surpassing Average:  14 (41%)
• Median Gross Sales:  $509,263
• Highest Gross Sales:  $2,360,821
• Lowest Gross Sales:  $77,124

2014

• Number of Franchisees That Operated for the Full Calendar Year:  34
• Average Gross Sales:  $796,927
• Number and Percentage Meeting or Surpassing Average:  15 (44%)
• Median Gross Sales:  $665,621
• Highest Gross Sales:  $3,178,756
• Lowest Gross Sales:  $30,902

2015

• Number of Franchisees That Operated for the Full Calendar Year:  33
• Average Gross Sales:  $833,157
• Number and Percentage Meeting or Surpassing Average:  14 (42%)
• Median Gross Sales:  $691,772
• Highest Gross Sales:  $3,150,590
• Lowest Gross Sales:  $0

2016

• Number of Franchisees That Operated for the Full Calendar Year:  31
• Average Gross Sales:  $952,153
• Number and Percentage Meeting or Surpassing Average:  15 (48%)
• Median Gross Sales:  $827,154
• Highest Gross Sales:  $3,828,318
• Lowest Gross Sales:  $29,121

2017

• Number of Franchisees That Operated for the Full Calendar Year:  35
• Average Gross Sales:  $899,141
• Number and Percentage Meeting or Surpassing Average:  14 (40%)
• Median Gross Sales:  $711,932
• Highest Gross Sales:  $3,831,484
• Lowest Gross Sales:  $44,500

2018

• Number of Franchisees That Operated for the Full Calendar Year:  33
• Average Gross Sales:  $1,076,928
• Number and Percentage Meeting or Surpassing Average:  12 (36.4%)
• Median Gross Sales:  $830,929
• Highest Gross Sales:  $4,324,709
• Lowest Gross Sales:  $500

2019

• Number of Franchisees That Operated for the Full Calendar Year:  30
• Average Gross Sales:  $1,204,875
• Number and Percentage Meeting or Surpassing Average:  13 (43.3%)
• Median Gross Sales:  $810,819
• Highest Gross Sales:  $4,450,529
• Lowest Gross Sales:  $91,419

2020

• Number of Franchisees That Operated for the Full Calendar Year:  33
• Average Gross Sales:  $1,081,129
• Number and Percentage Meeting or Surpassing Average:  13 (39.4%)
• Median Gross Sales:  $893,146
• Highest Gross Sales:  $3,616,261
• Lowest Gross Sales:  $500

2021

• Number of Franchisees That Operated for the Full Calendar Year:  34
• Average Gross Sales:  $1,451,724
• Number and Percentage Meeting or Surpassing Average:  12 (35.3%)
• Median Gross Sales:  $987,289
• Highest Gross Sales:  $6,296,384
• Lowest Gross Sales:  $110,821

2022

• Number of Franchisees That Operated for the Full Calendar Year:  39
• Average Gross Sales:  $1,488,100
• Number and Percentage Meeting or Surpassing Average:  12 (30.8%)
• Median Gross Sales:  $1,117,835
• Highest Gross Sales:  $7,050,066
• Lowest Gross Sales:  $61,824

2023

• Number of Franchisees That Operated for the Full Calendar Year:  38
• Average Gross Sales:  $1,516,480
• Number and Percentage Meeting or Surpassing Average:  13 (34.2%)
• Median Gross Sales:  $1,088,948
• Highest Gross Sales:  $6,710,075
• Lowest Gross Sales:  $112,805

Part 2 – Gross Sales Information About Franchisees Operating for the Full 12 Months of 2023

• As of December 31, 2023, there were 42 System franchisees in operation, 38 of which operated for the full 2023 calendar year. The following charts represent the average Gross Sales for these 38 franchisees.

Top Quartile

• Average Retail Sales:  $3,254,502
• Highest Retail Sales:  $6,710,075
• Lowest Retail Sales:  $1,777,360
• Number of Franchises in Quartile:  10
• Number and Percentage Meeting or Surpassing Average:  3 (30.0%)
• Median Retail Sales:  $2,897,471

Second Quartile

• Average Retail Sales:  $1,345,515
• Highest Retail Sales:  $1,571,818
• Lowest Retail Sales:  $1,042,127
• Number of Franchises in Quartile:  10
• Number and Percentage Meeting or Surpassing Average:  6 (60.0%)
• Median Retail Sales:  $1,380,920

Third Quartile

• Average Retail Sales:  $874,332
• Highest Retail Sales:  $1,018,327
• Lowest Retail Sales:  $687,295
• Number of Franchises in Quartile:  9
• Number and Percentage Meeting or Surpassing Average:  5 (55.6%)
• Median Retail Sales:  $958,858

Bottom Quartile

• Average Retail Sales:  $417,453
• Highest Retail Sales:  $595,871
• Lowest Retail Sales:  $112,805
• Number of Franchises in Quartile:  9
• Number and Percentage Meeting or Surpassing Average:  5 (55.6%)
• Median Retail Sales:  $430,478

• Of the 38 reporting franchisees discussed above, 35 were in operation during the full 2022 and 2023 calendar years.

• The following figures represent Gross Sales for 35 of these franchisees.

• The total combined Gross Sales for all 35 of these franchisees decreased by 1.74% when comparing year-end aggregate Gross Sales for 2023 to year-end aggregate Gross Sales for 2022. 16 franchisees met or surpassed this average in their own individual 2022 to 2023 percentage growth calculation.

• The average percentage growth for each of these 35 franchisees, when comparing each franchisee’s 2022 Gross Sales to 2023 Gross Sales, is 14.76%. Of this average, 11 franchisees met or surpassed the average.

• The median percentage growth for each of these 35 franchisees, when comparing each franchisee’s 2022 Gross Sales to 2023 Gross Sales, is 3.71%. Of this median, 18 met or surpassed the median.

Part 3 – Gross Profit Information About Franchisees Operating for the Full 12 Months of 2023

• DreamMaker sent a request for financial information to these 38 reporting franchisees discussed above and received information from 37 of them (97.4%).

• The following chart reflects average and median Gross Profit Margin for these 37 franchisees:

• Average Gross Profit Margin:  43.6%
• Median Gross Profit Margin:  46.8%
• Number Meeting or Surpassing Average:  24
• Number Meeting or Surpassing Median:  19

• The following chart reflects average and median Gross Profit Margin for these 37 franchisees, separated by quartile:

Top Quartile

• Average Gross Profit Margin:  51.5%
• Median Gross Profit Margin:  50.2%
• Number of Franchises in Quartile:  10
• Percentage Meeting or Surpassing Average:  40.0%
• Percentage Meeting or Surpassing Median:  50.0%

Second Quartile

• Average Gross Profit Margin:  47.6%
• Median Gross Profit Margin:  47.5%
• Number of Franchises in Quartile:  9
• Percentage Meeting or Surpassing Average:  44.4%
• Percentage Meeting or Surpassing Median:  77.8%

Third Quartile

• Average Gross Profit Margin:  43.7%
• Median Gross Profit Margin:  44.2%
• Number of Franchises in Quartile:  9
• Percentage Meeting or Surpassing Average:  55.6%
• Percentage Meeting or Surpassing Median:  55.6%

Bottom Quartile

• Average Gross Profit Margin:  30.6%
• Median Gross Profit Margin:  31.3%
• Number of Franchises in Quartile:  9
• Percentage Meeting or Surpassing Average:  55.6%
• Percentage Meeting or Surpassing Median:  55.6%

• “Gross Profit Margin” is the total Gross Sales for each franchisee minus the Cost of Goods Sold, expressed as a percent of Gross Sales.

• The “Cost of Goods Sold” is defined as direct costs to each job, including: 1) equipment costs; 2) production labor costs – insurance, workers’ compensation insurance, and burden; 3) production vehicle expenses – lease, maintenance and repair, fuel, license and registrations; 4) materials and freight costs; 5) general production supply expenses; 6) permit costs; 7) debris removal; 8) subcontractor costs; and 9) small tools and equipment.

• The figures reflected in the charts above were compiled from unaudited information reported to DreamMaker by its franchisees.

Part 4 – Average Contract Value Information About Franchisees Operating for the Full 12 Months of 2023

• DreamMaker sent a request for information to these 38 reporting franchisees discussed above and received information from 37 of them (97.4%). The following charts represent Average Contract Value, as defined below.

• The following chart reflects average and median Contract Value for these 37 franchisees:

• Average Contract Value:  $47,136
• Median Contract Value:  $50,933
• Number and Percentage Meeting or Surpassing Average:  19 (51.4%)
• Number and Percentage Meeting or Surpassing Median:  19 (51.4%)

• The following chart reflects average and median Contract Value for these 36 franchisees, separated by quartile:

Top Quartile

• Average Contract Value:  $72,824
• Median Contract Value:  $67,860
• Number of Franchises in Quartile:  10
• Number and Percentage Meeting or Surpassing Average:  3 (30.0%)
• Number and Percentage Meeting or Surpassing Median:  5 (50.0%)

Second Quartile

• Average Contract Value:  $55,357
• Median Contract Value:  $53,230
• Number of Franchises in Quartile:  9
• Number and Percentage Meeting or Surpassing Average:  4 (44.4%)
• Number and Percentage Meeting or Surpassing Median:  5 (55.6%)

Third Quartile

• Average Contract Value:  $40,799
• Median Contract Value:  $41,469
• Number of Franchises in Quartile:  9
• Number and Percentage Meeting or Surpassing Average:  6 (66.7%)
• Number and Percentage Meeting or Surpassing Median:  5 (55.6%)

Bottom Quartile

• Average Contract Value:  $23,843
• Median Contract Value:  $26,666
• Number of Franchises in Quartile:  9
• Number and Percentage Meeting or Surpassing Average:  5 (55.6%)
• Number and Percentage Meeting or Surpassing Median:  5 (55.6%)

• “Contract Value” is the dollar value of the selling price of each contract.

• The figures reflected in the charts above were compiled from unaudited information reported to DreamMaker by its franchisees.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – DreamMaker Bath & Kitchen Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️