Franchise Deep Dive: Kitchen Refresh Franchise Costs, Fees, Profit and Data

LAST UPDATED: 2/2024

FRANCHISE WEBSITE: https://www.kitchenrefresh.net/franchising-landing-page 

NUMBER OF LOCATIONS: 22 

REPORTED COST TO GET IN: $13,300 - $160,900

REPORTED ROI (Item 19): N/A

Kitchen Refresh is a franchise specializing in providing fast and affordable kitchen remodels to homeowners. The franchise aims to address the major pain points often associated with home improvement projects like kitchen remodels, such as long timelines and high costs.

How Many Kitchen Refresh Locations Are There?

Kitchen Refresh was founded in Bismarck, North Dakota, by Chris Reinicke, who was driven by the frustration of homeowners faced with limited options for updating their kitchen cabinets. Traditional methods — repainting, refacing, or complete tear-outs — were too wasteful or time-consuming, and often resulted in unsatisfactory outcomes.

After exploring various alternatives, Chris had an "aha" moment in March 2015, conceptualizing a solution that involved painting only the cabinet boxes, and then manufacturing new doors and drawer fronts with concealed, soft-close hinges and updated hardware. This innovative approach was cost-effective since it reused the existing cabinetry, but it was also flexible enough to update the styles and colors. The end result was high-quality, customized cabinets delivered in a fraction of the time of traditional remodels. 

Following successful proof-of-concept testing in Bismarck and Fargo, where the Refresh solution received enthusiastic feedback, Kitchen Refresh expanded its presence into other communities across the United States. Since then, the Refresh method has expanded to 22 territories. 

What Is The Kitchen Refresh Business Model?

The Refresh process involves refurbishing the client's existing cabinets with new components, which are manufactured by Kitchen Refresh's production center. The key components of Kitchen Refresh’s business model for franchisees are:

• Franchise System: Kitchen Refresh operates on a franchise model, where individuals can purchase a franchise to operate their own Kitchen Refresh Design Studio in a specific territory. Franchisees are provided with training, support, and access to the company's systems and processes.
• Fast and Affordable Remodels: Kitchen Refresh focuses on delivering kitchen remodels quickly, with basic refresh projects completed in five days or less. This rapid turnaround time addresses the pain point of long remodeling timelines experienced by many homeowners. Additionally, the company aims to offer lower prices than traditional remodeling options, with savings of up to 75% for clients.
• Utilization of Existing Cabinet Boxes: A key aspect of the Refresh process is working with a client's existing cabinet boxes rather than completely replacing them. This approach helps to reduce costs and streamline the remodeling process.
• Custom Manufacture of Components: After consulting with the client and taking the necessary measurements, Kitchen Refresh sends orders to their manufacturing facility for the production of all new doors, drawer fronts, and related components. These components arrive pre-finished and ready to install.
• Flexible System: The Refresh process is flexible and can accommodate various upgrades and changes to the cabinet layout, including additions or deletions, island installations, new drawer boxes, cabinet storage upgrades and more.
• No Royalties and Low Initial Franchise Fee: Kitchen Refresh does not charge royalties to its franchisees. The company offers tiered initial franchise fees, with options starting as low as $2,500, allowing for lower barriers to entry for prospective franchisees.
• By-Appointment-Only Design Studios: Franchisees operate by-appointment-only design studios, eliminating the need for expensive retail locations or full-time staffing. This model helps to reduce overhead costs while providing personalized service to clients.

How Much Can Kitchen Refresh Owners Make?

Earnings for Kitchen Refresh owners are not publicly available. 

How Much Does It Cost to Open a Kitchen Refresh Franchise?

Kitchen Refresh has set its opening cost as one of the lowest in the franchise industries, with a focus on minimizing investment requirements for franchisees. Typically, the total initial investment for a Kitchen Refresh franchise ranges from $13,300 to $160,900, depending on various factors and individual circumstances.

Here’s a breakdown of the associated costs: 

• Startup Costs: These costs include expenses related to setting up a design studio, such as lease payments, signage, carpentry, painting equipment (if handling installation and painting), business cards, and other initial marketing materials. The startup costs typically range from $4,000 to $25,000.
• Liquid Capital: Franchisees are advised to have liquid capital available to cover personal income needs during the startup and traction phase of the business. This amount can vary widely depending on individual circumstances, but may range from $0 to $20,000.
• Fixed Costs: These costs include ongoing expenses associated with leasing a small design studio space, storage space (if needed), utilities, internet access, and other related expenses. The monthly costs can range from $0 to $1,000, depending on existing resources and arrangements.
• Home Office Support: Franchisees are charged a fee for initial lead contact and follow-up, which typically starts three months after going live with selling. This fee is approximately $100 per week.
• Marketing Expenses: Franchisees are also responsible for weekly marketing expenses, which start three months after going live with selling and are approximately $500 per week.
• Monthly Ongoing Expenses: These smaller ongoing expenses include incidental costs and can range from $100 to $300 per month.

It's important to note that if franchisees already have an existing interior design or home remodeling business, some startup costs or capital needs may be reduced or eliminated. Additionally, if the franchisee's existing business generates sufficient personal income, it can help offset some or all of the expenses associated with starting a Kitchen Refresh franchise. 

What Is the Franchise Fee for Kitchen Refresh Group?

Kitchen Refresh offers three tiers of initial franchise fees, ranging from $2,500 to $25,000. This fee is paid one time and does not include any ongoing royalties.

Who Are the Leaders of Kitchen Refresh Group?

• Chris Reinicke - Founder

What Helpful Articles Can I Read to Learn More?

• Start a Kitchen Refresh Franchise in 2024
• Kitchen Refresh Franchise Cost and Requirements for 2024
• Top 12 Reasons To Be A Kitchen Refresh Franchisee

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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