Risk Score
Pending analysis
Investment Range
$21,280 - $133,950
Franchise Fee
$6,000
Min Cash Required
$7,200
Total US Locations
4
Business Summary
Kitchen Refresh operates a business that specializes in refreshing and remodeling cabinets and drawers for kitchens, bathrooms, and other interior spaces. The business also provides installation services for backsplashes, flooring, and countertops, offering a comprehensive solution for property owners looking to update their homes.
Corporate History
Kitchen Refresh Franchising, LLC was formed as a North Dakota limited liability company on March 18, 2020. The company operates under the 'Kitchen Refresh' brand, which it licenses from an affiliated entity, Kitchen Refresh, Inc. Kitchen Refresh, Inc. previously operated a Kitchen Refresh Studio from October 2015 through December 2019. Kitchen Refresh Franchising, LLC began offering franchises in March 2021. The franchisor's parent company is Kitchen Refresh Holdings, Inc., and another affiliate, Kitchen Refresh Supply, LLC, serves as an approved supplier for various millwork items.
Financial Overview
Investment Range
$21,280 - $133,950
Franchise Fee (Low)
$6,000
Franchise Fee (High)
$28,500
Minimum Cash Required
$7,200
Marketing %
4%
Equipment Costs (Low)
$2,100
Equipment Costs (High)
$30,000
Working Capital
$16,100
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kitchen Refresh Franchising, LLC has not generated positive cash flows from operations since its inception through December 31, 2023. The company's operations have relied on funding from its parent company, Kitchen Refresh Holdings, Inc. Management is actively working to improve operating cash flows, primarily through cash collection from franchisees. The parent company has expressed its intention and ability to provide any necessary financial assistance to ensure Kitchen Refresh Franchising, LLC can continue its operations for at least one year from the date the financial statements were issued.
Financing Details
Kitchen Refresh Franchising, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations on behalf of franchisees.
Performance Metrics
Total US Locations
4
Franchised Units
4
Corporate Units
0
Avg Square Footage
450
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Kitchen Refresh Franchising, LLC had one legal matter disclosed. In March 2022, the company voluntarily entered into a Consent Order with the Minnesota Department of Commerce. This settlement addressed claims that Kitchen Refresh Franchising, LLC had violated the Minnesota Franchise Act by selling franchises without effective registration in the state. As part of the agreement, Kitchen Refresh Franchising, LLC committed to complying with the Act, offering rescission to four Minnesota franchisees, and paying a civil penalty of $4,000.
Bankruptcy History
Kitchen Refresh Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Kitchen Refresh franchisees must be in full compliance with their agreement and have committed no more than three events of default during their current term. Franchisees must provide written notice to Kitchen Refresh Franchising, LLC at least six months before their term ends. They will need to execute a new franchise agreement, continue to maintain their premises, update their location to meet current trade dress and other brand standards, sign a general release of claims, and comply with the then-current qualifications and training requirements, including any additional training. A successor agreement fee, equal to 10% of the then-current initial franchise fee, will also be required.
Training & Support Program
Franchisor Assistance
Kitchen Refresh Franchising, LLC provides various forms of support. Before opening, the franchisor offers site selection guidelines and approval, provides specifications for the studio's layout, design, appearance, and signage, grants access to the operations manual, provides a list of required equipment and products, delivers the Studio Products Display, conducts an initial training program (virtually, at headquarters, or an affiliate-owned outlet), sets standards for employee qualifications, and may set maximum prices for products and services. After opening, Kitchen Refresh Franchising, LLC offers mandatory and/or optional additional training programs (up to five days annually) and requires attendance at national business meetings or annual conventions (up to five days annually). They also provide individualized assistance via phone, video conferencing, or email, furnish samples or digital artwork for advertising, conduct business inspections, sell cabinet and drawer components to franchisees, provide written specifications for equipment and suppliers, approve all advertising and promotional materials, and offer pre- and post-consultation services for customer leads.
Initial Training Hours
163
Training Location
Virtually and/or Bismarck, North Dakota and/or Fargo, North Dakota
Ongoing Support
After opening, Kitchen Refresh franchisees receive ongoing support including access to optional and mandatory additional training programs (up to five days annually) and attendance at annual national business meetings or conventions (up to five days annually). The franchisor provides individualized assistance within reasonable limits via telephone, video conferencing, and email. Franchisees also receive samples or digital artwork for advertising and promotional materials, and their businesses are subject to inspections to ensure standards are met. Kitchen Refresh Franchising, LLC sells cabinet and drawer components and provides written specifications for required equipment and approved suppliers. They may also set maximum prices for products and services, approve all advertising and promotional materials, and offer pre- and post-consultation services for customer leads.
Franchise Requirements
Ideal Candidate Profile
Kitchen Refresh Franchising, LLC seeks franchisees who will personally supervise, devote full time, and actively manage the day-to-day operations of their Kitchen Refresh business. If the franchisee is a business entity, all owners must sign the Franchise Agreement as a Principal, and any approved non-owner manager must also dedicate full time to the role and not have competitive business interests. The target market for a Kitchen Refresh business consists of homeowners and residential dwellers interested in kitchen and bath remodeling.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Each Kitchen Refresh territory is determined individually, considering minimum numbers of households and population demographics, and will encompass approximately a population of 350,000 individuals.
Staffing Notes
Kitchen Refresh franchisees are required to personally supervise and manage the daily operations of their business, dedicating full-time effort. If the franchisee is a business entity, one of the owners (principals) must serve as the general manager. With prior written approval, a non-owner manager can be appointed, provided this manager also commits full-time, has no conflicting business interests, and successfully completes all required training. All managers and other personnel who will have access to proprietary and confidential information must sign a Non-Disclosure/Non-Competition Agreement. Kitchen Refresh franchisees must hire qualified employees who are trained according to the franchisor's standards, present a neat and clean appearance, provide competent and courteous service, and protect confidential information. Background checks, including criminal history, are mandatory for all prospective employees. For any position involving entrance to a client's residence, a thorough review is required to screen for propensities for violence, dishonesty, negligence, or criminal convictions.