How to Start a Kitchen Remodeling Business: What You Need to Know

As home values increase, homeowners are using their equity for renovations, driving higher demand in the home remodeling industry. Nearly 93% of homeowners plan to tackle a renovation project in 2025 and kitchens are high on the list. If you’re thinking about starting a kitchen remodeling business, here’s what you need to know to get started.

Franchise vs. Startup Business

Let’s begin with a key question for anyone new to the business: Should I start my own company or buy a franchise from an established firm?

Opening a Remodeling Franchise

• Quick startup timeline: Franchises can make starting a kitchen remodeling business a relatively fast process. With a franchise like Kitchen Tune-Up, you buy a business with a proven business model rather than starting from scratch. You also get a recognized brand and all the support you need to open your business.
  
• Training and ongoing guidance: No industry experience is necessary. Kitchen Tune-Up provides comprehensive training and extensive ongoing support to help you succeed as a local business owner in your community.
• Protected territory: As a Kitchen Tune-Up franchise you receive a “protected territory” of at least 41,000 households. No other Kitchen Tune-Up franchise will compete with you in your designated area.
• Group buying power: We rely on economies of scale to negotiate low supply costs for our franchise owners.
• Low initial investment: Buying a Kitchen Tune-Up franchise requires an initial investment starting at $129,930*, which also covers the franchise fee.

How to Start a Kitchen Remodeling Business from Scratch

If you decide to launch your own kitchen remodeling business, here’s a breakdown of the steps it takes:

• Conduct market research: Do you want to remodel kitchens top-to-bottom, handling every aspect of the job? Or, do you want your business to focus on a single, niche aspect of kitchens? Do you plan to do hands-on work, hire staff, or employ contractors for parts of the job like electrical work? What’s the competition for these services in your area? Who is the target customer? Are you going after high-end remodels, or remodels for homeowners on budgets?
  
• Type of business: Find out what type of company you need to form. Should you start an LLC (Limited Liability Company), a sole proprietorship, or a corporation?
• Develop a business plan: Write a business plan and get financing. It should cover anticipated startup costs, operating expenses, financial goals, hiring plans, equipment costs, and showroom details.

Starting an owner-operator business could cost around $50,000 to $75,000. Launching a larger remodeling business could run $250,000 to $500,000.

• Do the paperwork: Register and insure your business. You might need both a business license and a contractor’s license, a license for plumbing and electrical work, and more. Don’t forget to buy insurance!
  
• Hire employees: You need salespeople as well as skilled workers.
• Source materials and supplies: You’ll need to form relationships with cabinet companies, countertop manufacturers, flooring companies, and others, to gain access to supplies.

Which Business Model Is Right for You?

Independent business owners have more leeway to create their own operational procedures. They don’t pay a franchise fee, but start-up costs can vary widely.

Franchises, however, have the backing and support of a larger, well-established company. Franchise owners know clearly what their start-up costs will be because the franchisor sets those costs. Buying a kitchen remodeling franchise makes sense if you want to own and run a business with support and training.

Inquire now to find out more about franchising with Kitchen Tune-Up.

*See Franchise Disclosure Document for details