Legacy for Family: How Owning a Franchise Builds Generational Wealth

Interested in establishing a legacy for family? Learn how owning a franchise business in the home services industry can help you build generational wealth.

Family Business Facts

A family-owned business is any business where the majority owners are related. Successful family-owned businesses focus on long-term goals and have a sense of purpose beyond profits. making them resilient. Decision makers have a shared vision and values, enabling the company to focus on long-term viability over short-term gains.

Only 19% of small businesses are family-owned, but they generate 64% of our U.S. gross domestic product and employ 60% of the U.S. workforce, according to SCORE. Research conducted by McKinsey & Company reveals that family-owned businesses outperform their counterparts.

But building a legacy for family can be difficult. Transitioning from one generation to the next poses challenges for many family-owned operations. Data from SCORE reveals that only 30% of family businesses survive the transition to the second generation and only 12% stay open after being handed down to the third generation.

Family-owned businesses can take steps to it’s important to keep the lines of communication open to help streamline the transition to the next generation. Transparency helps build trust and ensures everyone understands succession plans, goals, and expectations. A gradual transition can enable the next generation to gain experience while still receiving guidance from the current owner.

Franchising Creates a Legacy for Family

Franchising can help by offering a structured framework and established brand identity, making it easy for future generations to transition into business ownership seamlessly. With standardized processes, training programs, and ongoing support from the franchisor, successors can quickly adapt and continue the legacy while benefiting from a proven business model. The support and guidance from the franchisor can minimize disruptions and foster long-term success and building a family legacy across generations.

Partnering with a franchise enables you to diversify your portfolio and create generational wealth. As you explore franchising, there are several different models to consider:

• Business format franchise: A business format franchise is the most common type of franchise. The franchisor provides a comprehensive business model, including branding, operating procedures, marketing strategies, training, and ongoing support to the franchisee.
• Semi-absentee franchise: In a semi-absentee franchise, the franchisee has some level of flexibility regarding time commitment. They can maintain other professional or personal commitments while still owning and operating the franchise. However, they still need to oversee the business and may need to hire managers or staff to handle day-to-day operations.
• Investment franchise: An investment franchise, such as a hotel, enables owners to take a hands-off approach, but it typically involves a high initial investment from the franchisee.
• Managed services franchise: In a managed services franchise, franchise owners pay a fee for the corporate entity to run the business. It can be an ideal option for a person who want to diversify their portfolio while keeping initial costs low.

Home Services Offers Family-Friendly Opportunities

While the pandemic outbreak prompted homeowners to tackle home remodeling projects they had put on the back burner and outsource tasks to improve the useability of their homes, rising interest rates are enabling the industry to continue to thrive.

Home improvement spending jumped 6% per household to $13,667 over an average of 11.1 projects in 2023, according to Angi. Some of the top projects were general maintenance, interior painting, and new appliance installations.

 Home services businesses offer scalable, low-overhead opportunities. Many remodeling franchises, like Kitchen Tune-Up, don’t require a retail showroom and rely on mobile vans to serve customers. Franchisees can pursue vertical growth by acquiring additional brands and becoming a one-stop shop for home services in their community, enabling them to leverage their existing customer base and resources to drive sales.

Join the Home Services Industry with Kitchen Tune-Up

Kitchen Tune-Up is a family-founded company with a renowned national reputation. Dave and Cindy Haglund founded Kitchen Tune-Up after owning a local cabinet store in Aberdeen, South Dakota for more than 13 years. The pair’s daughter, Heidi Morrisey, rose through the ranks at the chain and is now president.

Kitchen Tune-Up remodels and enhances kitchens, including cabinet refacing, re-dooring, custom cabinetry, and closet organization. By focusing on quality craftsmanship and personalized service, Kitchen Tune-Up helps homeowners transform their kitchens to meet their unique needs and style preferences. The brand’s signature Original Tune-Up is designed to restore stained, scuffed, or worn cabinets to look like new, often within a single day.

The initial investment to open a Kitchen Tune-Up ranges from $129,930 to $188,850. We offer in-house financing to qualified candidates of up to $48,000 to help trim start-up expenses. To understand if Kitchen Tune-Up is the right fit to create a legacy for family, let’s explore some benefits of partnering with us to launch a business.

• Turnkey business: We’ve spent the last 35 years honing our operations to ensure franchisees have optimal know-how, guidelines, and methods to be successful.
• Innovation: We stay ahead of industry trends with innovative solutions and technologies, giving franchisees a competitive edge in delivering top-notch services. Our Augmented Reality App allows a client to transform their kitchen during the in-home consultation by selecting different countertop types and cabinet styles, colors, and hardware.
• Franchise network: As part of a supportive network of like-minded entrepreneurs, franchisees benefit from collaboration, mentorship, and a sense of belonging, enhancing their success as family-owned businesses.
• Group buying power: Our franchisees can take advantage of collective purchasing power to negotiate favorable pricing on materials, equipment, and supplies, to maximize profitability and offer competitive prices.
• Comprehensive support: We provide extensive training, marketing assistance, and operational guidance, empowering families to succeed in their businesses. After initial training, we continue to provide ongoing business coaching and support, including access to two private podcast channels, weekly and monthly live webinars, and guidance from a regional operations manager.
• Flexibility: Our franchise owners are not required to open a showroom. They can travel to customers for sales and service and operate back-office administrative tasks from a home office. While franchise owners do need access to a warehouse for storage, our business model is designed to enable owners to balance work and family life effectively.

Join the Kitchen Tune-Up Family

Since its debut in 1988, Kitchen Tune-Up has grown to approximately 274 locations across the U.S. If you want to create a legacy for family, inquire now to learn more about how Kitchen Tune-Up can help you achieve your vision.