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

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

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

Section III – Number of franchised and company-owned Kitchen Solvers 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 Kitchen Solvers franchise opportunity

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

• 2023 average, median, highest, and lowest gross revenue, materials expenses, installation expenses, adjusted gross revenue, and number of jobs for the 21 Kitchen Solvers franchise owners representing 29 franchised outlets that were in operation for a full 12 months as of December 31, 2023 and responded to the franchisor’s survey

• 2023 average, median, highest, and lowest gross revenue for the 21 Kitchen Solvers franchise owners representing 29 franchised outlets that were in operation for a full 12 months as of December 31, 2023 and responded to the franchisor’s survey, by tier (top third, middle third, and bottom third)

• 2023 average, median, highest, and lowest gross revenue for the 21 Kitchen Solvers franchise owners representing 29 franchised outlets that were in operation for a full 12 months as of December 31, 2023 and responded to the franchisor’s survey, by years in operation (1-4 years, and >4 years)

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

Section I – Kitchen Solvers Franchise Costs

• Initial Franchise Fee:  $60,000
• Pre-Opening Training:  $1,200 to $2,500
• Supplies Package:  $7,400
• Local Marketing:  $6,000
• Rent/Leasehold Improvements:  $0 to $4,500 (Showroom)
• Office Equipment and Computer System:  $0 to $4,500
• Vehicle:  $0 to $2,100
• Vehicle and/or Trailer Wrap:  $1,000 to $2,500
• Insurance Premiums:  $1,000 to $3,500
• Utility Deposits and Business Licenses:  $100 to $750
• Attorneys’ 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:  $825
• Additional Funds (3-month period):  $20,000 to $30,000
• Total Estimated Kitchen Solvers Franchise Costs:  $98,825 to $134,900

Section II – Kitchen Solvers’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $60,000

• Royalty Fee:  an amount equal to the greater of (i) the Monthly Minimum Fee, or (ii) a specified percentage of your monthly Gross Sales

Monthly Minimum Fee

• 0-6 months:  $0
• 7-12 months:  $300
• 13-24 months:  $600
• After 24 months:  $900

Royalty, as a Percentage of Monthly Gross Sales

• $0 to $50,000:  6%
• $50,001 to $75,000:  5.5%
• $75,001 to $100,000:  5%
• $100,001 to $125,000:  4.5%
• $125,001 to $175,000:  4%
• $175,001 to $225,000:  3.5%
• $225,001 to $275,000:  3%
• $275,001+:  2.5%

• Local Marketing:  $24,000 each calendar year (with a minimum spend of $2,000 each month unless Kitchen Solvers designates or approves otherwise)

• Brand Fund Fee:  1% of Gross Sales

Section III – Number of Franchised and Company-Owned Kitchen Solvers Outlets

Franchised

2021

• Outlets at the Start of the Year:  43
• Outlets at the End of the Year:  48
• Net Change:  +5

2022

• Outlets at the Start of the Year:  48
• Outlets at the End of the Year:  50
• Net Change:  +2

2023

• Outlets at the Start of the Year:  50
• Outlets at the End of the Year:  49
• Net Change:  -1

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 Kitchen Solvers Franchise

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

• As of December 31, 2023, there were 49 franchised outlets (with each “outlet” representing one franchised territory) open.

• Out of these 49 franchised outlets: (a) 7 were not in operation for a full 12 months as of December 31, 2023; and (b) 1 outlet was inactive during the 2023 Calendar Year.

• Kitchen Solvers sent Item 19 surveys to all remaining 41 franchised outlets requesting the financial performance information detail disclosed in this Item 19 (each an “Item 19 Survey”) for the 2023 calendar year (the “Measurement Period”).

• 21 franchise owners representing 29 of the franchised outlets responded to the survey. Kitchen Solvers refer to these 29 outlets as the “Item 19 Outlets” and the 21 franchise owners as the “Item 19 Franchise Owners” in this Item 19 financial performance representation.

Part 1 – 2023 Average, Median, Highest, and Lowest Gross Revenue, Materials Expenses, Installation Expenses, Adjusted Gross Revenue, and Number of Jobs for Item 19 Franchise Owners

• Part 1 reflects the average Adjusted Gross Revenue achieved during the Measurement Period for Item 19 Franchise Owners. Part 1 also discloses the highest and lowest overall Adjusted Gross Revenue in the group of Item 19 Franchise Owners. Part 1 also discloses the average Gross Revenue, Materials Expenses, Installation Expenses, and average Number of Jobs for Item 19 Franchise Owners.

Gross Revenue

• Average:  $875,573 (100.0%)
• Percentage That Met or Exceeded Average:  29%
• Percentage of Gross Revenue:  100%
• Median:  $665,537
• Highest in Group:  $3,259,075
• Lowest in Group:  $184,700

Materials Expenses

• Average:  $317,664 (36.3%)
• Percentage That Met or Exceeded Average:  33%
• Percentage of Gross Revenue:  36%
• Median:  $235,267
• Highest in Group:  $1,008,635
• Lowest in Group:  $78,858

Installation Expenses

• Average:  $206,717 (23.6%)
• Percentage That Met or Exceeded Average:  38%
• Percentage of Gross Revenue:  24%
• Median:  $102,234
• Highest in Group:  $1,014,792
• Lowest in Group:  $0

Adjusted Gross Revenue

• Average:  $351,192 (40.1%)
• Percentage That Met or Exceeded Average:  33%
• Percentage of Gross Revenue:  40%
• Median:  $201,267
• Highest in Group:  $1,401,636
• Lowest in Group:  $70,700

Number of Jobs

• Average:  21
• Percentage That Met or Exceeded Average:  52%
• Percentage of Gross Revenue:  N/A
• Median:  25
• Highest in Group:  130
• Lowest in Group:  9

Part 2 – 2023 Average, Median, Highest, and Lowest Gross Revenue for Item 19 Franchise Owners, by Tier

• Part 2 reflects the Average Gross Revenue achieved during the Measurement Period for the following three tiers of Item 19 Franchise Owners: the top third, the middle third, and the bottom third. Part 2 also discloses the highest Gross Revenue achieved in each tier, the lowest Gross Revenue achieved in each tier, the median Gross Revenue achieved in each tier, and the number and percentage of Item 19 Franchise Owners that met or exceeded the average presented in each tier.

Top Third

• Number of Franchise Owners:  7
• Average Gross Revenue:  $1,814,482
• Highest Gross Revenue in Group:  $3,259,075
• Lowest Gross Revenue in Group:  $869,223
• Median:  $1,667,051
• Percentage That Met or Exceeded the Average:  43%

Middle Third

• Number of Franchise Owners:  7
• Average Gross Revenue:  $587,288
• Highest Gross Revenue in Group:  $858,914
• Lowest Gross Revenue in Group:  $344,770
• Median:  $665,537
• Percentage That Met or Exceeded the Average:  57%

Bottom Third

• Number of Franchise Owners:  7
• Average Gross Revenue:  $233,949
• Highest Gross Revenue in Group:  $288,995
• Lowest Gross Revenue in Group:  $184,700
• Median:  $220,126
• Percentage That Met or Exceeded the Average:  43%

Part 3 – 2023 Average, Median, Highest, and Lowest Gross Revenue, by Years in Operation

• Part 3 reflects the Average Gross Revenue achieved during the Measurement Period for the following groups of Item 19 Franchise Owners: (i) those who have been in business for between 1-4 years, and those who have been in business more than 4 years. Part 3 also discloses the highest Gross Revenue achieved in each group, the lowest Gross Revenue achieved in each group, the median Gross Revenue achieved in each group, and the number and percentage of Item 19 Franchise Owners that met or exceeded the average presented in each group.

1-4 Years

• Number of Franchise Owners:  9
• Average Gross Revenue:  $402,045
• Highest Gross Revenue in Group:  $858,914
• Lowest Gross Revenue in Group:  $192,800
• Median:  $344,770
• Percentage That Met or Exceeded the Average:  22%

>4 Years

• Number of Franchise Owners:  12
• Average Gross Revenue:  $1,230,720
• Highest Gross Revenue in Group:  $3,259,075
• Lowest Gross Revenue in Group:  $184,700
• Median:  $877,621
• Percentage That Met or Exceeded the Average:  33%

• “Gross Revenue” means the total reported revenues and receipts from the sale of all products and services sold through each Item 19 Outlet. Gross Revenue does not include sales tax.

• “Range” provides the lowest and highest outcome experienced for each category.

• “Job” means a customer contract for one job.

• “Materials Expenses” means the cost of all direct materials purchased by the Item 19 Outlet to complete all customer projects during the Measurement Period.

• “Installation Expense” means the total amount of money spent on all subcontracted and employed labor needed to install and fulfill customer contract obligations by the Item 19 Outlet.

• For purposes of Part 1, “Adjusted Gross Revenue” is defined as Gross Sales less Materials Expenses and Installation Expenses.

• For purposes of Materials Expenses and Installation Expense, a franchisee is considered to have met or exceeded the average if they experienced total expense amounts equal to or less than the related averages identified in the tables above.

• The Percentages of Gross Sales presented in Part 1 are disclosed to allow for the factoring in of the Materials Expenses incurred in connection with the performance of jobs.

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

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