Kitchen Tune-Up logo

Kitchen Tune-Up Franchise

Audited Financials
Home ServicesEst. 1988Aberdeen, SD
www.kitchentuneup.com
Financing Available

Risk Score

Pending analysis

Investment Range

$129,930 - $188,850

Franchise Fee

$16,958

Min Cash Required

$25,000

Total US Locations

309

Business Summary

The KITCHEN TUNE-UP® franchise specializes in home kitchen and other woodwork improvements. Franchisees offer on-site wood restoration and repair services, along with replacement cabinet doors, cabinet refacing materials, cabinet painting, new cabinets, granite sealing, shelf organizers, flooring, countertops, backsplashes, and plumbing fixtures. The business utilizes a proprietary system and requires a vehicle with approved signage to make sales calls and perform work, primarily serving residential customers in an assigned territory.

Corporate History

HFC KTU LLC, the franchisor for KITCHEN TUNE-UP®, was organized on December 7, 2020. However, the business concept itself has a longer history, tracing back to its predecessor, DCHFamily, Inc., formerly KTU Worldwide, Inc. (KTUW), which was formed in 1988 and began offering KITCHEN TUNE-UP® franchises in the same year. HFC KTU LLC acquired substantially all of KTUW's assets in December 2020. In addition to KITCHEN TUNE-UP®, HFC KTU LLC also offers BATH TUNE-UP® franchises, having started that offering in January 2021.

Financial Overview

Investment Range

$129,930 - $188,850

Franchise Fee (Low)

$16,958

Franchise Fee (High)

$19,950

Minimum Cash Required

$25,000

Royalty %

7%

Marketing %

1%

Equipment Costs (Low)

$10,000

Equipment Costs (High)

$36,500

Working Capital

$25,000

Audited Financials

Yes

Offers Financing

Yes

Audit Opinion

Unqualified opinion

Financial Health Notes

KITCHEN TUNE-UP®'s financial statements indicate a healthy financial position and performance. In 2024, the company reported a net income of approximately $1.59 million, following $2.27 million in 2023. The balance sheets show that cash increased from $1.84 million in 2023 to $2.30 million in 2024. Current assets significantly exceed current liabilities, with total current assets of $4.31 million in 2024 compared to current liabilities of $1.51 million. The independent auditors have issued an unqualified opinion, meaning they found the financial statements to be presented fairly in all material respects, and did not raise any substantial doubt about the company's ability to continue as a going concern.

Financing Details

KITCHEN TUNE-UP® offers financing for a portion of the Initial Franchise Fee and Initial Territory Fee if a franchisee meets its credit standards. The amount financed is $48,000, with no down payment required. The loan has a 60-month term, an interest rate of 10% per annum, and a monthly payment of $1,019.86. There are no prepayment penalties. If a franchisee defaults, they risk losing the franchise, must pay the unpaid balance, and cover attorney fees and costs. Franchisees also waive their right to notice of a collection action and to assert any defenses to collection against the franchisor. KITCHEN TUNE-UP® does not guarantee any notes, leases, or other obligations.

Performance Metrics

Total US Locations

309

Franchised Units

261

Corporate Units

0

Avg Square Footage

850

Franchising Since

1988

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their KITCHEN TUNE-UP® franchise, franchisees must pay a renewal fee, sign the franchisor's then-current franchise agreement, not be in default of their existing agreement, and make any necessary upgrades to the franchised business. The new franchise agreement may have terms and conditions that are significantly different from the current agreement. Franchisees are typically offered two consecutive 5-year renewal terms.

Training & Support Program

Franchisor Assistance

KITCHEN TUNE-UP® provides extensive support to its franchisees. Before opening, the franchisor assists with territory designation, showroom approval (if applicable), use of its Marks, and provides an initial training program and a Start-up Package. Franchisees also receive proprietary information for staff training, electronic access to the operating Manuals, a list of standard equipment and supplier sources, and help with initial promotion and advertising. After opening, ongoing assistance includes policing of the brand Marks, training on new products and services, consultation and guidance from representatives during business hours, and optional on-site training (for a fee). KITCHEN TUNE-UP® also holds mandatory annual Conventions (with a fee) and offers a 12-week post-training program and launch team support. Additionally, the franchisor maintains a website and an electronic portal for resources and may provide structured coaching.

Initial Training Hours

209

Training Location

Coppell, TX and Virtual

Ongoing Support

After opening, KITCHEN TUNE-UP® provides continuous support by policing its brand Marks and offering training as new products, services, and methods are developed. Franchisees can consult with franchisor representatives during normal business hours for guidance. Optional on-site training is available for a fee. Franchisees are required to attend an annual Convention, which also incurs a fee. The franchisor assists with post-opening promotion and maintains a website and an electronic portal for disseminating manuals, marketing materials, and training resources. A 12-week post-training program and launch team are also provided to guide franchisees. The franchisor may also provide or facilitate structured coaching at its own cost.

Franchise Requirements

Ideal Candidate Profile

KITCHEN TUNE-UP® prefers franchisees who plan to be actively involved in the direct operation and daily affairs of their franchised business, rather than seeking passive investments. If a franchisee chooses not to operate the business themselves, they are required to employ at least one full-time manager.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

Yes

Operational Details

Location Type

Hybrid

Owner Participation

Hands-On

Territory Type

Protected

Territory Size Requirements

KITCHEN TUNE-UP® territories are defined by United States Postal Service ZIP Codes. Each territory begins with approximately 41,000 households. The specific ZIP codes within a franchisee's territory will remain fixed and will not change, even if their boundaries are adjusted by the Postal Service or if the population within them increases or decreases.

Staffing Notes

KITCHEN TUNE-UP® requires that if a franchisee does not personally operate the franchised business, they must employ at least one full-time manager. The franchisor explicitly states that it is not a joint employer of the franchisee's staff and does not determine wages, benefits, hours, duties, supervision, hiring/firing, or working conditions for the franchisee's employees. Franchisees are responsible for indemnifying KITCHEN TUNE-UP® against any claims related to being joint employers. The designated manager must complete the initial training program and adhere to confidentiality agreements and non-compete covenants.