Risk Score
Pending analysis
Investment Range
$298,350 - $506,350
Franchise Fee
$53,550
Min Cash Required
$15,000
Total US Locations
17
Business Summary
Cabinet IQ Franchising, LLC offers franchises for a professional kitchen remodeling services business. This includes both residential and commercial clients. Franchisees operate under the 'Cabinet IQ' brand and related marks. The business model involves operating a retail showroom and office space where clients can visit to view product samples and work with a designer to plan their kitchen remodeling projects. Certified installers handle the actual installation of cabinets and related services.
Corporate History
Cabinet IQ Franchising, LLC was formed as a Texas limited liability company on June 17, 2021. The company began offering Cabinet IQ franchises on January 3, 2022. Its parent company, Cabinet IQ Holdings, LLC, was formed in July 2021. Before the franchisor's formation, an affiliate called Cabinet Plus, LLC operated a similar business in Cedar Park, Texas starting in July 2018. This affiliate, originally known as 'Cabinets Plus USA' and 'Cabinets Plus,' rebranded to 'Cabinet IQ' in August 2021 and opened a second location in Austin, Texas in February 2022. The founder of Cabinet IQ Franchising also operated a sole proprietorship with a similar business from June 2016 to July 2018.
Financial Overview
Investment Range
$298,350 - $506,350
Franchise Fee (Low)
$53,550
Franchise Fee (High)
$154,700
Minimum Cash Required
$15,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$184,500
Equipment Costs (High)
$266,500
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Cabinet IQ Franchising, LLC indicate that the company incurred net losses of $539,524 in 2024, $329,590 in 2023, and $392,298 in 2022. These ongoing losses raise substantial doubt about Cabinet IQ Franchising, LLC's ability to continue as a going concern. Management plans to increase revenue through the sale of new franchises and is actively seeking additional capital to cover expected expenses.
Financing Details
Cabinet IQ Franchising, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
17
Franchised Units
15
Corporate Units
2
Avg Square Footage
1,900
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cabinet IQ Franchising, LLC has no litigation history to report. Item 3 of the Franchise Disclosure Document explicitly states that no litigation is required to be disclosed.
Bankruptcy History
Cabinet IQ Franchising, LLC has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Cabinet IQ franchisees must provide written notice between six and twelve months before the current term ends. They need to update, refurbish, or replace any aspects of the franchise, including Cabinet IQ Vehicles, to meet current brand standards. Franchisees must have consistently complied with all terms of their franchise agreement and other agreements with Cabinet IQ Franchising, LLC and its affiliates, and satisfied all monetary and reporting obligations. They are required to sign Cabinet IQ Franchising, LLC's then-current franchise agreement (which may have substantially different terms, including higher fees), pay a renewal fee of the greater of $5,000 or 25% of the initial franchise fee, and execute a general release of claims against the franchisor and its affiliates. Additionally, the franchisee's Operating Principal, Manager, Salesperson, and other personnel must meet current qualification and training requirements.
Training & Support Program
Franchisor Assistance
Before a Cabinet IQ franchise opens, Cabinet IQ Franchising, LLC provides initial training for up to three individuals (Operating Principal, Manager, and Salesperson) at its headquarters or a designated location. Additional opening assistance can be provided if requested and deemed necessary, though fees may apply. The franchisor also reviews proposed sites and leases, and lends a copy of the operations manual, along with a list of approved suppliers for fixtures, equipment, and initial inventory. Once the franchise is operational, Cabinet IQ Franchising, LLC provides ongoing assistance through additional training programs, reviews and approves all franchisee promotional materials and advertising, administers the Brand Fund, and offers periodic marketing, management, and operational support. The franchisor also specifies the technology systems and software franchisees must use, and may offer additional services like a call center or recruiting assistance for a fee.
Initial Training Hours
145
Training Location
Virtual Classroom and Austin, TX
Ongoing Support
After opening, Cabinet IQ Franchising, LLC provides ongoing support to franchisees through additional training programs as deemed appropriate. The franchisor reviews and approves all promotional materials and advertising used by franchisees. It also administers the Brand Fund for system-wide marketing. Franchisees receive periodic assistance with marketing, management, and operations, provided at the times and in the manner determined by the franchisor. Franchisees and designated employees are required to attend refresher training programs or seminars, including an annual conference, for which the franchisee is responsible for travel, lodging, and salaries, and pays an annual conference fee. If additional on-site training is requested, franchisees pay daily fees plus expenses. Cabinet IQ Franchising, LLC may also offer optional additional services such as a call center or recruiting assistance for current fees.
Franchise Requirements
Ideal Candidate Profile
Cabinet IQ Franchising, LLC seeks individuals to become franchisees who are committed to actively managing and growing their business. Each franchisee entity must have an 'Operating Principal' who owns at least a 20% equity interest, has authority over all business decisions, and can bind the franchisee in dealings with the franchisor. Additionally, a full-time Manager and Salesperson must be appointed to handle day-to-day operations and customer service. While the Operating Principal is primarily responsible for overseeing business matters, they are explicitly required to devote substantial time and attention to leading, managing their team, analyzing, and growing the business. Cabinet IQ Franchising, LLC emphasizes that this is not an absentee or semi-absentee business model; multiple individuals must dedicate their full-time and best efforts for success.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Staff Count
3
Territory Size Requirements
Each Cabinet IQ franchise territory generally consists of up to 100,000 owner-occupied households. Franchisees can potentially purchase additional owner-occupied households for their base territory, typically up to an extra 20,000 households.
Staffing Notes
Cabinet IQ franchisees are required to appoint an Operating Principal (an owner with at least 20% equity, responsible for business decisions and oversight), a Manager for day-to-day operations, and a Salesperson for customer service and sales. The Operating Principal can serve as either the Manager or Salesperson (but not both), subject to the franchisor's assessment of their experience. Franchisees are responsible for hiring employees or subcontractors to perform services, ensuring they have an adequate number to meet demand in their territory and that they adhere to brand standards. Franchisees must maintain a competent, conscientious, and trained staff to promptly serve customers.