Franchising Since: 1972
Headquarters: Waco, Texas
Estimated Number of Units: 45
Franchise Description: The franchisor is Worldwide Refinishing Systems, Inc. dba DreamMaker Bath & Kitchen. Franchisees will perform residential and commercial bathroom and kitchen remodeling, cabinet refacing, safety and mobility modifications and other interior remodeling, and perform related services and sell related products. Franchisees will focus primarily on interior remodeling but will also provide exterior remodeling and restoration projects as needed.
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Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. Franchisees will be granted certain rights in a specific geographic territory but, because the franchisor reserves certain rights in the territory, rights in the territory are not absolute. The territory will generally have a minimum population of 200,000 for more rural or less densely populated areas, a minimum population of 350,000 for more densely populated and urban areas, and a maximum population that is generally no more than 1,000,000. The franchisor generally does not award territories with a population of more than 1,000,000, but it may award them in exceptional circumstances to be determined in its discretion. The population in your territory is generally determined from estimates prepared by the U.S. Census Bureau, but the franchisor may use a substitute or successor source of population information.
Obligations and Restrictions: If franchisees are individuals, they must directly perform or supervise the operation of the franchise unless the franchisor consents otherwise. If the franchisor agrees that the franchisee need not personally perform or supervise the operation of the franchise, an individual who has successfully completed the training program (a general manager) must directly supervise the franchise. If franchisees are a corporation or other legal entity, direct, on-site supervision must be done by a designated shareholder and/or owner who has successfully completed our training program unless the franchisor consents otherwise (the operating principal). Franchisees must offer and sell only the goods and services which conform to the franchisor’s standards and specifications. Franchisees must offer the goods and/or services that we designate as required for all franchisees and they may elect to offer other products and/or services if the franchisor approves them in advance. Franchisees must comply with all applicable laws and regulations and obtain all appropriate governmental approvals for the franchised business including obtaining a contractor’s license if required by their locality.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The Franchise Agreement can be renewed for additional 10-year terms by executing the then-current form of Franchise Agreement and meeting the other requirements for renewal.
Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. The franchisor may periodically agree with third party lenders to make financing available to qualified franchisees and the franchisor may, in its sole discretion, refer franchisees to a third-party lender for financing. The franchisor has no control over whether financing will be offered to franchisees by any third-party lender. If franchisees are an honorably discharged veteran who meets the qualifications for purchasing a franchise, the franchisor will discount the initial franchise fee by 20%.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee* | $48,000 | $75,600 |
Software Support Fee | $4,495 | $4,495 |
Vehicle | $0 | $11,000 |
Equipment, Supplies and Inventory | $30,205 | $34,205 |
Insurance | $7,500 | $12,000 |
Initial Advertising & Promotional Deposit | $36,000 | $60,000 |
Initial Education Fee | $2,100 | $2,100 |
Training, Travel, Lodging & Food | $4,000 | $8,000 |
Deposits, Permits & Licenses | $0 | $2,000 |
Real Estate | $71,500 | $179,081 |
Professional Fees | $8,275 | $12,500 |
Additional Funds – 9 to 12 mo. (includes estimated personal living expenses for 6 to 12 mo.) | $18,000 | $101,250 |
Refundable Design Center Deposit | $5,000 | $5,000 |
ESTIMATED TOTAL (plus any additional franchise fee) | $235,075 | $507,231 |
Other Fees
Type of Fee | Amount |
Royalty Fee | Standard: from 7% down to 3% as annual aggregate gross sales rise; Roll-in: 4% to 3% of the “rolled-in” gross sales. |
Minimum Royalty Fee | See FDD. |
Marketing, Advertising, and Promotion Fee (“MAP Fee”) | 2% of gross sales. However, if franchisees have an existing business which they “roll-in” to the franchise, the franchisor will discount the MAP fee to 1% of the “rolled-in” amount for a certain period of time. |
Minimum MAP Fee | 1% of gross sales “rolled in.” |
Advertising Cooperative | If a local or regional cooperative is formed for a geographic area that includes the franchisee’s territory, the franchisee will determine the annual contribution in cooperation with the other members of the cooperative. The franchisor specifies that the maximum annual contribution to a cooperative cannot exceed 2% of gross sales. |
Required Advertising Spending | The initial advertising and promotional deposit will cover the first year’s advertising spending requirement. During the second year, franchisees must spend at least 5% of their annual gross sales, and during the third and each additional year, you must spend at least 3% of their annual gross sales. |
Additional Voluntary or Mandatory Training | Ranges between $350 to $1,000 per person per day. If training is conducted on-site at the franchisee’s location, the franchisee must also reimburse the franchisor for its actual costs. |
Reunion Registration Fee | Usually $400 to $595 per person, with discounts for early registration. For non-participants, there is a separate charge for the Awards Banquet, usually $75 for children under 12 and $125 for persons over 12. These fees may increase in the future. |
Continuing Education Fee | $350 |
Monthly Software Maintenance and Support Fee | Currently, $515. |
Construction Design Review Fee | $5,000 |
Transfer Fee | 10% of selling price for the business or $20,000, whichever is greater or $1,500 for transfer to a franchisee’s controlled entity. |
Warranty Escrow Upon Transfer | Up to 10% of sales price. |
Late Report or Amended Report Fee | $25 per late report; $50 per amended report. |
Administrative Enforcement Fee | $500 per violation or enforcement action and the greater of $250 or 1% of gross revenue. |
Software Administrative Enforcement Fee | $1,000 per occurrence. |
Dishonored Check or ACH Draft | $75 |
Interest | 12% on unpaid balances or the maximum interest rate permitted by law, whichever is less. |
Failure to Maintain Insurance | The franchisor’s actual cost. |
Audit | Cost of audit plus expenses if underpayment is 3% or more. |
Renewal Fee | $10,000 |
Amendment Fee | The franchisor’s actual out-of-pocket costs, including legal costs, with a minimum fee of $1,500. |
Unapproved Vendors | The franchisor’s actual out-of-pocket costs of inspection, review, or testing, whether or not the franchisor approves the item. |
Liquidated Damages | According to a formula based on the two-year royalty fee history or the length of time the franchisee violated the co-branding provision. |
Tax Reimbursement | Varies according to tax. |
Holdover Amounts | Royalty fee and MAP fee payments will equal 150% of the rates described in the Franchise Agreement. |
Indemnification | Varies according to loss. |
Brand Protection Fund | Initial contribution $5,000. |
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