Home renovation projects have become the popular alternative to rejoining the housing search and the exhausting real estate market. Whether homeowners are turning to remodeling as a means to satisfy their desire for an environment that feels new or as a way to increase the value of their home before putting it back on the market, contractors and companies like Cabinet IQ are seeing a constant flow of requests every week. With this in mind, it’s not crazy to imagine a Cabinet IQ franchise generating fantastic revenue anywhere, right?

Cabinet IQ Franchisees have seen success with a variety of demographics, but there are a few essential factors that each location shares in common. As a potential Franchise Owner, how can you tell whether or not your territory will be a good fit for your new home improvement business? In this blog, we’ll take a look at the top seven aspects to consider when deciding which territory to open your Cabinet IQ home services franchise.

 

7 Factors That Determine if Your Territory is a Good Fit for Cabinet IQ

The Cabinet IQ kitchen remodeling franchise is a fantastic option for any potential franchisee candidate because it’s in a unique position in the booming home renovation business. Since our inception in 2017, Cabinet IQ has continued to strive toward a single, simple goal: to bring an innovative, streamlined approach and 5-star experience to kitchen design and cabinet/countertop sourcing and installation.

It’s thanks to this background and forward-thinking business model that we’re confident in our franchise’s ability to thrive in a variety of environments! While we believe in our model’s ability to find success anywhere in the country, not all locations are going to help home services Franchisees find this success. Here are some of the key factors to consider when you’re trying to figure out if the territory of your choice is going to be a viable fit for a Cabinet IQ kitchen remodeling franchise.

1. Who Is Your Ideal Client?

When you start looking into Cabinet IQ for potential franchise ownership, it’s clear right off the bat that homeowners of any kind can be fantastic customers for a cabinet and countertop remodeling business. However, that doesn’t mean all of those homeowners will be your ideal client. While some Franchise Owners may try to offer their home services to everyone in their territory, the business-savvy Owners will know that their time is best spent determining what type of client in their territory will actually convert and contribute to their bottom line.

For example, if you want to work with more affluent homeowners who want to prioritize quality in their home remodeling projects, you may want to consider looking at higher-income neighborhoods over the more low- and middle-class communities that prefer to do home projects themselves. On the other hand, you could also target neighborhoods with older average homes that need countertops or cabinets replaced to bring them up to par. Whoever you deem as your ideal client will determine whether or not your territory is a good fit for your vision for a Cabinet IQ kitchen remodeling business.

2. Where Your Your Ideal Client Can Be Found

Once you have a clear image of who your ideal client is in your mind, you can then analyze your territory and see if that client type is in your area. While urban and suburban areas are better fit for a Cabinet IQ home services franchise, you can expect to see some of your preferred clients even in rural regions of the country. For example, kitchen remodeling projects can be just as essential in rural areas with older homes as they are in more densely populated areas with more large developments.

Regardless of the reason why homeowners want to seek out your kitchen remodeling services, it’s key to select your territory based on the percentage of the population that qualifies as your ideal client: too few could be less business and revenue for you in the long term. In more ideal territories, you not only have a better chance at launching successfully, but you’ll also have the foundation you need to scale your business on your terms.

3. The Demographics of Your Territory

When you begin the education process of joining a franchise, one of your first tasks is often to look at the demographics of the territory you’ve chosen to consider. This often includes looking at income levels, housing types, economic growth, age groups, and more, and it’s done by the Cabinet IQ support team to help set Franchise Owners up for success – now and well into the future. While cabinets and countertops aren’t always a need-not-want service, the current state of the real estate market has pushed more homeowners to look at remodeling over buying a new home. So, Franchise Owners will likely see demand in any territory they choose to join.

4. Codes or Regulations to Consider

Every county has different regulations when it comes to home renovation businesses – that’s not unique to any territory in the U.S. However, some counties may have more red tape or restrictions around what you can do, which could easily cause project delays or headaches with clients. This is most common in areas with older, more historic homes and counties that prioritize historic conservation. While this may not be a make-or-break factor, it’s especially important to consider if you want to set yourself up with easier everyday remodeling projects as opposed to regularly working through red tape.

5. The Population of Your Community

It may sound obvious, but franchises receive requests from people all the time about opening locations in areas with tiny populations that couldn’t sustain a kitchen remodeling business long-term. However, whenever this happens, Cabinet IQ guarantees Franchisees protected territories based on zip codes that include a population of 100,000 minimum. With this in mind, all you need to consider is which urban or suburban area you want to call your “home base.” Plus, with our “hub and spoke” model, you can scale your kitchen remodeling business as demand grows, converting one of your showrooms into the primary warehouse location that sustains other brick-and-mortar locations you open along the way.

6. The Hiring Market in Your Territory

As a Cabinet IQ Franchise Owner, you’ll have two key relationships to focus on to keep your business operations running smoothly: employees and subcontractors. While you only need yourself and one employee to launch your business, you need to feel confident in your team’s ability to assist with sales and design tasks to secure and satisfy customers. Eventually, you’ll also need to consider hiring managers to run your Cabinet IQ locations, so if the hiring pool in your territory has candidates suited to other roles, you could be forced to pick up more of the everyday tasks yourself.

Additionally, since the Cabinet IQ business model leverages subcontractors, it’s important to ensure that the job pool in your area isn’t exclusively white-collar office workers. A territory that’s large enough to have a few contractors for you to choose from will ensure that you can find competitive pricing and not be too dependent on one provider.

7. How Your Territory May Grow in the Near Future

Metropolitan areas and smaller cities across the country continue to change, so it’s not just the current state of your territory that you need to consider – it’s also how it will look 3, 5, or 10 years from now. While some areas are exploding with growth, other cities are actually seeing more people moving out than in. This means fewer homeowners and opportunities for growth with a Cabinet IQ home services franchise; these territories may still see tremendous success, but they could be less likely to grow, forcing a Franchise Owner to expand into additional territories to build a truly scalable business. Instead, cities experiencing consistent growth in recent years are a better indicator of a perfect territory fit for a Cabinet IQ kitchen remodeling franchise.

If you’re currently searching for a franchise that fits your personal, financial, and career goals, consider these factors to help you decide if your current community is an ideal candidate for a Cabinet IQ home services franchise territory. Is your hometown a good fit, or should you look at another, potentially more metropolitan area in your state instead? The easiest – and most affordable – way to find out is to take yourself through this exercise to assess your territory! Once you’ve found the right territory for your Cabinet IQ home improvement franchise, you’re one step closer to Franchise Ownership! If you haven’t already, check out our blog on what it takes to be the ideal Franchisee Candidate to open one of our kitchen and home remodeling businesses.

As you continue your franchising journey, whether you’re considering your hometown or another area for your future franchise territory, Cabinet IQ is here to help you along the way. Take the next step in the process and reach out to our team to learn more about our territories, our franchise business model, and more. Get started today by taking our quick, 1-minute qualification quiz today.

Published On: December 14th, 2023 / Categories: Featured, Trending /