Franchise Profitability
Abundant Opportunities
The first question most people ask before getting into any business is, “How much money can I make?” With a kitchen and bath remodeling franchise, you have the potential to make quite a lot. Ultimately, your home improvement franchise profitability is determined by the demand for your products and services, and home improvement is one of the hottest industries in the country as it continues to grow. Interior designers, homeowners, and builders are all in need of kitchen and bathroom remodelers who offer high quality products and excellent customer service. That could be you!
The Home Services Market is Hot:
The home improvement market is sizzling hot and full of business opportunities, especially if you own a cabinet and countertop franchise. Home improvement spending rose 25% in 2021, with homeowners finishing an average of 3.7 projects. While only 15% of homes bought last year were new constructions, the remaining 85% were previously owned, many of which likely need renovations or updates. According to the National Kitchen and Bath Association, “80 percent of features in the home become outdated within 15-20 years,” and nearly 51 million homes will be “in that sweet spot for potential remodels” in 2022. Furthermore, a study by Angi.com predicts that home improvement spending will continue to rise as more millennials become first-time home buyers and look to make changes to their new homes right away. In fact, in 2021,one out of every four new home owners immediately renovated their bathrooms in order to personalize them.
Demand is High for Our Home Remodeling Products and Services:
Kitchen and bathroom renovations consistently make the Top 10 list of most popular home remodeling projects, usually vying for the No. 1 spot. According to Home Guide, an average kitchen remodel costs $25,000,but a high-end job may run well over $100,000. Likewise, bathroom renovations average $10,000 but may run higher than $30,000, depending on the size of the room and the scope of the project. Even small-scale home remodeling jobs in both kitchen and bathrooms generally include replacing countertops and some cabinetry. According to the 2022 Houzz Kitchen Trends Study, 65% of homeowners replace all of their kitchen cabinets during a remodel, and 29% replace some of them. Better still, 91% replaced their countertops. Clearly, there’s a huge demand for the home remodeling products and services we offer.
The business opportunities are endless, and we exploit those specific to your business to develop a feasible kitchen and bath remodeling business plan for the franchise.
Average Ticket
$25,000
COGS
Materials
42%
COGS
Labor
13%
Gross Profit
46%
2022 Company Store Gross Sales
$3,744,000
Our Five - Star Reputation Makes Cabinet IQ Home Services Franchise the Top Choice:
While popular television shows would have you believe that Americans prefer DIY projects, the truth is that a majority of homeowners hire a professional for big remodeling jobs. And no cabinet and countertop franchise has a better reputation for its professionalism than Cabinet IQ. Our high quality home remodeling products and customer-focused approach to doing business routinely earn us five-star ratings and reviews which, in turn, earns us more new home improvement customers.
Learn More About Home Services Franchise Profitability:
Because every home improvement franchise location is different, we can’t guarantee what your specific franchise ROI (return on investment) will be. We can, however, show you how our other franchise locations are performing as of their most recent year in operation. Item 19 of our franchise disclosure document (FDD) has detailed information about our flagship store’s revenue growth along with other historic financial performance data. Of course, we always welcome your questions and invite you to contact us with any concerns you have regarding franchise profitability.
Get Profitability Information
