Franchise Investment: What to Know Before You Invest

Franchising is a great opportunity for first-time entrepreneurs, but understanding the franchise investment can be overwhelming. We’re here to help! Here’s what you should consider before investing in a franchise business, well as what makes franchising such a smart choice for newcomers.

Start a New Adventure in Franchising

Worried that you don’t have the right experience for home improvement franchise ownership? Don’t be! Franchise opportunities within the home services industry have a well-earned reputation for being beginner-friendly. In most cases, you don’t need prior experience to thrive in home services – just natural leadership skills, stellar work ethic, great customer service skills, and the ability to follow systems. It’s important to keep in mind that, as a franchise owner, you are required to follow the franchisor’s business model and processes. If you have strong opinions about the services you’d like to provide or how the business should run, franchising might not be the best opportunity for you.

Kitchen Tune-Up is the ideal opportunity for entrepreneurs who are new to remodeling, as you don’t need any previous industry experience. Most of our franchisees form partnerships with contractors who do the physical work, so our franchise owners mainly focus on leadership, management, and day-to-day operations. Our in-depth training program will teach you everything you need to know to successfully operate a Kitchen Tune-Up franchise. Your training includes four weeks of at-home virtual learning, followed by 14 days of certification training that features a combination of virtual learning and in-person training at our Experience Center in Dallas. To supercharge your success after training, you’ll follow a 12-week action plan with accountability and receive 3-7 months of personalized assistance from our launch team. 

As you continue your franchise journey, you’ll have ample opportunities for business coaching, continuing education, and support from other franchisees within our system. It’s an invaluable resource that sets you head and shoulders above the competition in your community and gives you the advantages you need to flourish.

How to Finance a Franchise 101

There’s a lot to learn when you’re new to franchising, and you’re likely to have a lot of questions throughout the process. Learn more about what about what comes with the all-inclusive Kitchen Tune-Up franchise investment.

Tell me more about franchise cost estimates. What goes into my initial investment?

Early in the franchise process, you’ll receive a copy of your potential franchisor’s Franchise Disclosure Document, or FDD. This legal document contains helpful information about your responsibilities to the franchisor, as well as their business model and place in the market. Each item is important, but if you’re trying to understand franchise cost estimates, you’ll want to take a closer look at Item 7. 

Item 7 usually takes the form of a chart and includes all the costs that go into getting your franchise ready to open. Unless the information can be shared with a single figure, like the franchise fee, most of these costs will be presented with a low-to-high range. Your actual investment depends on several factors, including the territory you’re operating in, the equipment you choose, and the materials you need. Businesses that require a brick-and-mortar office tend to have a higher initial investment and higher ongoing costs than franchises that can be operated from home. Kitchen Tune-Up offers franchise owners the choice of a home-based business or retail location; the choice is yours.

Per the 2025 FDD, Kitchen Tune-Up’s franchise investment cost is:

• $79,950 initial franchise fees
• $49,980 minimum working capital required
• $129,930 to $188,850 investment range
• $81,930 minimum total cash required

Consult the FDD for details.

Are there any hidden or long-term fees that I should budget for?

Franchisors are legally required to be transparent about the costs associated with franchising, and they do their best to make sure you have a full picture of your investment. The FDD includes a full breakdown of the ongoing fees and royalties you’ll be responsible for throughout the life of your franchise under Item 6. At minimum, you can expect this to include royalties and marketing fees.

That said, there are some costs we can’t fully account for, like repairs, and regulatory obligations that are specific to you. Permit fees and renewals, zoning, taxes, insurance, and utility bills can all vary in cost. You should also plan to budget for payroll, upgrades, accounting and legal services, and general upkeep. 

Since your franchisor has provided up-front information about fees, this should allow you to budget more efficiently and create some flexibility for when the unexpected happens.

I’m not sure if I can pay for my franchise out of pocket. Will I have financing options?

Taking out a loan to get your business up and running is common for both franchisees and independent business owners. Most franchisors are comfortable with you pursuing additional franchising as long as you meet their minimum financial requirements. If you’re interested in financing your franchise, be sure to mention it during the franchise process. Your franchisor will walk you through the loan options for your situation, whether that’s in-house financing, a home equity loan, Small Business Administration loans, or borrowing against your retirement fund.

Kitchen Tune-Up provides up to $48,000 of in-house financing for qualified franchisees. We’re also happy to share our trusted third-party lenders with you and help you choose the right one.

When can I expect to achieve a return on my investment?

Unfortunately, it’s not possible to predict when any individual business will break even. During your first year in business, your profits are likely to be impacted by higher expenses and lower growth. Even after you’ve gotten through the initial phase of franchise ownership, profitability takes time, and ROI depends on a number of different factors, some of which will be out of your control.

If you’re interested in the overall profitability of your franchise system, the FDD can help with that, too. Under Item 19, franchisors who are comfortable with sharing earnings claims may provide figures that give you a closer look at how the system is performing. This could include gross sales, average unit volume, and sales breakdowns. As with the rest of the FDD, you might want to go over this information with your accounting and legal teams.

Make a Smart Franchise Investment with Kitchen Tune-Up

Kitchen Tune-Up is one of the savviest franchise investments in home services. For 35+ years, we’ve been guiding first-time entrepreneurs to franchise success, and we can help you, too. 

Change your life for the better – inquire now, and one of our franchise advisors will be in touch with more information about investing in our kitchen remodeling franchise.