Franchising Since: 1984
Headquarters: La Crosse, Wisconsin
Estimated Number of Units: 55
Franchise Description: KS La Crosse Investments, LLC is the franchisor. The franchise offered is for the operation of a Kitchen Solvers business within a particular geographic territory. The business features kitchen and bathroom update, beautification and remodeling services for residential and commercial buildings.
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Territory Granted: The franchisor grants franchisees the right to operate a Kitchen Solvers business within a particular territory. The method used to describe territorial boundaries of franchises will be one or a combination of the following: county lines, highways or streets, or zip codes. A standard territory will consist of a maximum of 85,000 owner-occupied households. If the franchisor permits a franchisee to acquire additional contiguous zip codes so that the territory consists of more than 85,000 owner-occupied households, then the franchisee must pay the additional population fee. In any event, the territory may not contain more than 110,000 owner-occupied households. During the term of the Franchise Agreement, the franchisor will not establish either a company-owned Kitchen Solvers business or another Kitchen Solvers franchise within the territory or modify the territory without written permission, provided that franchisees are in complete compliance with the terms and conditions of the Franchise Agreement.
Obligations and Restrictions: If franchisees are individuals, they must directly supervise and manage the business in the territory. If franchisees are a corporation, partnership or other business entity, they must designate in writing to the franchisor an individual who will directly supervise and manage the operation of the business in the territory. In either instance, the individual who will directly supervise and manage the operation of the business in the territory must complete the training program. Franchisees must offer and sell only those products and services that the franchisor has approved. Franchisees may use only marketing and promotional materials that the franchisor has approved.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees satisfy renewal requirements, they will have two options to renew for up to two additional 10-year renewal term each.
Financial Assistance: The franchisor does not offer any direct or indirect financing to its franchisees. The franchisor does not guarantee the franchisee’s note, lease, or obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $60,000 | $60,000 |
| Pre-Opening Training (for travel and living expenses during training) | $2,000 | $3,000 |
| Supplies Package | $7,000 | $7,000 |
| Local Marketing | $9,000 | $9,000 |
| Rent/Leasehold Improvements (Showroom) | $0 | $4,500 |
| Office Equipment & Computer System | $0 | $4,500 |
| Vehicle and/or Trailer | $0 | $10,700 |
| Vehicle and/or Trailer Wrap | $500 | $4,200 |
| Insurance Premiums | $1,000 | $3,500 |
| Utility Deposits and Business Licenses | $100 | $750 |
| Attorney’s Fees | $500 | $1,000 |
| Bookkeeping Tech Fees | $701 | $701 |
| Accounting Fees | $450 | $1,650 |
| Back Office Expenses | $165 | $450 |
| Installation Tools | $0 | $7,250 |
| Technology Fees | $951 | $951 |
| Additional Funds (3-month period) | $20,000 | $30,000 |
| ESTIMATED TOTAL | $102,367 | $149,152 |
Other Fees
| Type of Fee | Amount |
| Royalty Fee | An amount equal to the greater of: (i) the monthly minimum fee ($0 to $900 by months open), or (ii) a specified percentage of monthly gross sales (6% down to 2.5%). |
| Local Marketing | 5% of expected annual gross sales (with a minimum spend of $3,000 per month for the initial 3 months of operation, unless the franchisor approves otherwise). |
| Technology Fee | Currently, $317 per month. |
| Brand Fund Fee | 1% of gross sales. |
| Transfer Fee | $5,000 |
| Pre-Opening Training | Pre-opening training for up to two people (the franchisee and approved manager) is included in the initial franchise fee; additional attendees may incur charges. |
| Audit | Will vary under circumstances (generally $500 to $2,000). |
| Late Fee | $25 late fee added one day after the due date; plus $10 per day of delinquency. |
| Insurance– 3 Months (Single Territory) | Estimated at $1,000 to $3,500, annual premium which will vary under the circumstances. |
| On-site Training Fee | $350 per day plus expenses. |
| Annual Convention Registration Fee | The then-current registration fee; not currently charged. |
| Convention No-Show Fee | $1,000 if the franchisee fails to attend the annual convention without prior approval not to attend. |
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