As a home remodeling franchise, Cabinet IQ regularly chats with prospective clients about their home renovation projects. In these conversations, we receive all kinds of questions and do what we can to answer them and simplify the complex process of kitchen and bathroom remodeling. With this in mind, we also strive to do the same for our franchising process, and we’ve done this by implementing tools to help you navigate the complexities of becoming a home services franchisee.

Opening a home services franchise is a huge step in anyone’s life, and since most people we chat with are first-time franchisees, our corporate team is familiar with walking people through the franchising process and answering the myriad of questions each person has. Let’s take a look at eight of the most common questions we hear most often and the process behind joining the Cabinet IQ home remodeling franchise.

Franchise consultation

The 8 Most Common Questions We Get About Our Franchise

1. Cabinet IQ’s franchise business model seems only to be proven in Texas, so why should I take the investment risk?

According to Global Market Insights, the home improvement industry is anticipated to reach $450 billion in the U.S. by 2027. This is partly due to the high interest rates we’re seeing in the real estate market today; rather than buying a new house, homeowners are choosing to stay where they are and opt to renovate instead, especially kitchen and bath remodels.

The good news is that this is not a geographically specific trend: this is across the U.S. and not unique to Texas. So, while the Cabinet IQ home improvement franchise was founded and initially proven in Texas, the territories we’ve awarded outside of the state show that Franchisees recognize the growing demand for our home services in their local communities.

2. How can a business that only offers cabinets and countertops be successful?

Kitchen and bathroom remodels have consistently been the most popular projects in the home renovation industry, with 28% of projects being in the kitchen and 25% in bathrooms in 2022. With more homeowners choosing to stay with their current houses, the need for reputable providers that can assist with renovating these spaces will climb to an all-time high.

With this in mind, Cabinet IQ remodeling franchise focuses only on cabinets and countertops to maintain a streamlined business model that allows us to produce the best profit margins possible. With the additional products and services our competitors offer, our Franchisees establish themselves in a niche position to only sell and install these two products, keeping them lean and efficient.

3. How does the “hub and spoke” business model work?

As Cabinet IQ Owners grow their home improvement business, they’ll eventually need to open additional brick-and-mortar locations. However, unlike other franchises, the new locations won’t need the same large footprint as your initial, now primary warehouse. Our “hub and spoke” business model allows the additional brick-and-mortar spaces to act as complementary showrooms that rely on the primary location’s large warehouse storage space. As you grow, you’ll add more “spokes” and take advantage of this easily scalable home improvement business model.

4. Why should I invest in a franchise over starting my own business?

Business ownership is a common dream many people share at some point in their lives, but few have the know-how and business management experience to make it a reality. That’s why franchising has become a successful alternative to traditional business ownership. Rather than starting with just an idea, you get a proven business model, operational processes, and an entire support team to help you launch your new business.

With a franchise, you also gain access to ongoing training and assistance to help you scale your business as you’re ready to grow and expand into new territories. This means that all the difficult work is done for you, and you just need to lean on the established systems for your day-to-day operations.

5. How profitable can a home services franchise be?

While profitability varies across different home services, our franchise is focused on cabinets and countertops because they lend to higher profit margins than that of other services. In our 2023 FDD, we show $2,389,735 in Average Gross Revenues and $1,126,801 in Average Gross Profit across our two affiliate franchise locations in Cedar Park and Austin, Texas! With all reported expenses in consideration, this brings our EBITDA to $362,629.(1)

6. What kind of business expenses come with a cabinet and countertop installation franchise

With our home services franchise, the top expenses a Franchise Owner can expect will include materials at 40% and installation labor at 12% of gross revenue(2). Other operational costs include:
● Materials
● Installation labor
● Showroom rent and utilities
● Operations and admin costs
● Tools, supplies, and consumables

In addition to installation and operation costs, there are a variety of other business expenses associated with the sales, marketing, and legal aspects of running your Cabinet IQ home remodeling franchise. From paying your minimal sales employees to expanding your reach with effective marketing, these other expenses can include:
● Payroll and sales commissions
● Advertising and marketing
● Legal and professional services
● Royalty fee, and national ad fund

To learn more about the business expenses of running a Cabinet IQ home improvement franchise, complete our qualification quiz which will allow you to receive our our 2023 Franchise Disclosure
Document for exact numbers and details of our affiliate franchise locations’ costs.

7. Why should I join Cabinet IQ over another home improvement franchise?

Cabinet IQ stands out from other home services franchises in the home improvement industry because of our streamlined business model and laser focus on only cabinets and countertops. This allows us to achieve a level of expertise that would be otherwise impossible with a typical jack-of-all-trades home services franchise. We have simplified the kitchen remodeling service for the benefit of customers and franchisees alike, positioning us as a unique business opportunity in the franchise world.

With this in mind, we’ve kept our initial financial investment as low as possible by ensuring our showrooms don’t need to be situated in prime, grade-A real estate. Additionally, showrooms are
subsidized by vendors, bringing your brick-and-mortar expenses down and increasing your average profit margins.

CabinetIQ kitchen remodeling

8. What is the process for joining the Cabinet IQ home services franchise?

At Cabinet IQ, we invite everyone interested in joining our home services franchise to start our mutual, 7-step discovery process. In this process, you get the chance to learn more about us, and we take the time to learn more about you! Here’s what you can expect each step of the way:

1. Initial Call

Once you’ve decided to take a leap of faith and explore the Cabinet IQ home remodeling franchise opportunity, the first step we’ll take together is an initial call to get to know each other better. This is formatted as an informal conversation.

2. FDD Review

In the franchise world, “FDD” stands for Franchise Disclosure Document, and in it, you’ll receive a deep dive into all the legal nuts and bolts of our home services business model. This covers everything from our locations’ revenue, average sales, and the fees involved with running a franchise to the expenses involved in running a Cabinet IQ home improvement business.

3. Market Research

As you move forward, our next step in the process is to conduct market research on your prospective territory to ensure a Cabinet IQ home improvement business will thrive there. Since our home services franchise is designed to work in subprime real estate, our market research focuses on other aspects including demographics, population, etc.

4. President’s Call

Once our team has confirmed your community will work with the Cabinet IQ home services franchise, you’ll then get on the phone to chat with our founder and president, Michael Hartel. On this call, you’ll have the opportunity to ask him any questions and address any concerns that have come up at this point in time.

5. Peer Review

Next, you’ll have a chance to chat directly with current Franchise Owners and hear all about what the day-to-day is like for a Cabinet IQ home services Franchisee. They’ll tell you everything you want to know about the initial training, the daily operations, and what it’s actually like managing your own sales and marketing.

6. Approval Day

If you’ve made it through the discovery process to this point, you’ll finally get the chance to fly out to Austin, TX to meet our corporate team in person and tour some of our operating showrooms for yourself. This is when you will officially decide whether a Cabinet IQ home remodeling franchise is the right fit for you.

7. Be Awarded Your Franchise!

At this point, it’s official; you will be awarded your home services franchise and will become the next Cabinet IQ Franchisee! Together, we’ll celebrate, finalize all the financial and legal obligations to get started, and begin figuring out your training schedule so you can confidently launch.

While these are the most common Cabinet IQ franchising questions we hear, there’s no better way to get the answers you’re looking for than to connect with our team. If you have a question we didn’t answer, connect with us, and we’ll guide you through everything you need to know!

Published On: October 3rd, 2023 / Categories: Featured, News, Trending /