Kitchen Wise Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$139,100 - $198,000
Franchise Fee
$55,000
Min Cash Required
$22,500
Total US Locations
7
Business Summary
Kitchen Wise, LLC operates a home-based, mobile business that specializes in marketing, designing, selling, and installing custom products and shelving for kitchen and bathroom cabinets, as well as closet shelving services. Kitchen Wise, LLC franchisees identify and solicit customers, typically operating from a van or truck and a home office, and are responsible for all aspects of the business, including sales, design, and installation.
Corporate History
Kitchen Wise, LLC was formed in Delaware on September 30, 2019, and operates under the "KITCHEN WISE" name. It acquired substantially all the assets of a Wisconsin-based entity, also named Kitchen Wise, LLC, on October 1, 2019. The Wisconsin entity was originally organized on November 1, 2016, and began offering franchises in April 2017. Kitchen Wise, LLC itself began offering franchises in October 2019. Kitchen Wise, LLC is 100% owned by PSB Group, LLC, which is 99.9% owned by Premium Service Brands, LLC (PSB). PSB also owns and operates several other home services franchise brands.
Financial Overview
Investment Range
$139,100 - $198,000
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$65,000
Minimum Cash Required
$22,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$3,000
Equipment Costs (High)
$6,500
Working Capital
$31,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kitchen Wise, LLC's financial condition, as reflected in its financial statements, raises questions about the franchisor's ability to provide services and support to its franchisees. Premium Service Brands, LLC, the parent company, has consistently reported a members' deficit, showing a deficit of $(5,873,114) in 2024 and $(5,185,319) in 2023. It also incurred net losses of $(687,795) in 2024 and $(733,879) in 2023. Due to this financial condition, regulatory bodies in states like Illinois and Maryland have required Kitchen Wise, LLC to defer the payment of initial franchise fees and other initial payments until the franchisor completes its pre-opening obligations to the franchisee.
Financing Details
Kitchen Wise, LLC does not offer any direct or indirect financing to its franchisees. It also does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
7
Franchised Units
7
Corporate Units
0
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
15
Litigation Summary
Kitchen Wise, LLC and its affiliates have been involved in 15 disclosed legal and administrative proceedings. Currently, there are four pending actions. Two relate to 360 Painting, LLC (an affiliate) in Massachusetts, where it is defending against a former franchisee's claims of fraud and misrepresentation in pre-sale disclosures, while also pursuing counterclaims for breach of contract and trade secret misappropriation. The other two pending actions involve Rooterman, LLC (another affiliate) in Massachusetts, where it has filed a lawsuit and arbitration case against a former franchisee for trademark infringement and breach of agreement, with the former franchisee having filed counterclaims. Prior actions include five civil lawsuits, mostly involving 360 Painting, LLC or Premium Service Brands, LLC (Kitchen Wise, LLC's parent company). These cases involved claims such as breach of contract with former franchisees and vendors, and fraud in inducement, all of which were settled for various amounts between 2018 and 2021. Kitchen Wise, LLC and its affiliates have also been subject to six governmental actions. These administrative proceedings, primarily from 2016 to 2023, involved issues such as offering unregistered franchises, failure to obtain required state amendments, and failing to disclose litigation in Franchise Disclosure Documents. These resulted in consent orders, civil penalties, required rescission offers, and, in one instance from California in 2021, a 36-month bar for Paul Flick (CEO of Kitchen Wise, LLC's parent company) from offering or selling franchises in California.
Bankruptcy History
Kitchen Wise, 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 Wise, LLC franchisees must provide timely written notice, be in compliance and not in default of their Franchise Agreement, sign the then-current Franchise Agreement (which may have materially different terms), pay a renewal fee equal to the greater of 25% of the current initial Franchise Fee or $15,000, maintain, update, or replace their vehicles, maintain, refurnish, renovate, modernize, and remodel their business to current standards, satisfy all monetary obligations, meet current qualifications and training requirements, and sign a general release of any claims against Kitchen Wise, LLC.
Training & Support Program
Franchisor Assistance
Kitchen Wise, LLC provides franchisees with pre-opening assistance, including designating a protected territory, offering an initial training program, loaning the Brand Standards Manual, providing a list of approved suppliers, and assisting with the setup of mandatory software systems, websites, and email accounts. Kitchen Wise, LLC also offers suggestions on pricing policies. After opening, Kitchen Wise, LLC provides ongoing support. This includes additional opening assistance with sales, promotions, and operations upon request, periodic advice and general guidance via telephone, email, faxes, and newsletters, and discretionary on-site visits for consultation. Kitchen Wise, LLC also provides updates to the System, Brand Standards Manual, and approved products/services. It approves local advertising materials and maintains a contact center for centralized customer service and scheduling. Ongoing training and operations assistance are also available as deemed necessary.
Initial Training Hours
80
Training Location
Charlottesville, VA and online/virtual
Ongoing Support
After opening, Kitchen Wise, LLC provides ongoing support to its franchisees. This includes additional assistance with sales, promotional, and operational matters upon request. Franchisees receive periodic advice and general guidance through telephone, email, faxes, and newsletters. Kitchen Wise, LLC may also make periodic visits to businesses for consultation and guidance, and offers ongoing training and operations assistance as needed. The franchisor provides updates and changes to the System, the Brand Standards Manual, approved suppliers, and products/services. It also approves advertising materials and maintains a contact center for centralized customer service and scheduling. Additional training courses are available through an online learning management system, or live at Kitchen Wise, LLC's headquarters or the franchisee's location.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Kitchen Wise, LLC territories are defined by zip codes and must contain between 50,000 to 80,000 single-family dwellings.
Staffing Notes
The Kitchen Wise Business must be under the direct, full-time, on-premises supervision of a Designated Manager who has completed initial training. This manager can be the franchisee or an individual selected by the franchisee. Kitchen Wise franchisees are solely responsible for all aspects of recruiting, interviewing, hiring, timekeeping, scheduling, payroll processing, supervising, disciplining, and firing their personnel. Employees must wear approved apparel and maintain a competent, courteous, neat, and clean appearance. The franchisor explicitly states it does not dictate or control labor or employment matters for the franchisee's employees and is not a joint employer, with franchisees having sole authority over essential terms and conditions of employment.