Cabinet IQ Franchise FDD, Profits, Costs & Fees (2024)
Cabinet IQ is a kitchen and bathroom remodeling franchise specializing in the design and installation of cabinets and countertops.
Founded in 2016 in Austin, Texas, by Michael Hartel, the company was established to modernize and simplify the home improvement industry, which was perceived as outdated and inefficient.
The company’s headquarters remain in Austin, Texas. Cabinet IQ began offering franchise opportunities to entrepreneurs interested in the home services sector.
The franchise focuses exclusively on cabinets and countertops, allowing for a streamlined business model that emphasizes quality and efficiency. This specialization enables franchisees to deliver high-quality products and services without the complexities associated with broader remodeling services.
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Initial Investment
How much does it cost to start a Cabinet IQ franchise? It costs on average between $219,000 – $305,000 to start a Cabinet IQ franchised business.
This includes costs for showroom setup, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the size and layout of the showroom, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $53,550 – $59,500 |
| Custom Marketing & Services Activation Fee | $2,000 |
| Showroom Design and Order Preparation Fee | $3,000 |
| Software Implementation Assistance Fee | $2,500 |
| Rent | $10,000 – $18,000 |
| Lease, Utility, and Security Deposits | $6,300 – $10,500 |
| Exterior Signage | $5,000 – $8,000 |
| Improvements | $105,000 – $150,000 |
| Training, Travel and Living Expenses | $500 – $3,000 |
| Insurance | $1,500 – $3,500 |
| Grand Opening Advertising/Marketing | $14,000 |
| Professional Fees | $1,000 – $5,000 |
| Office Supplies and Promotional Items | $500 – $1,250 |
| Technology, Computer, and Software | $3,500 |
| Business Licenses and Permits | $0 – $1,000 |
| Additional Funds – 3 Months | $10,250 – $20,500 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $218,600 – $305,250 |
Competitors
Below are 10 Cabinet IQ competitors in comparison:
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Cabinet IQ Franchise Disclosure Document
Frequently Asked Questions
How many Cabinet IQ locations are there?
As of the latest data, Cabinet IQ operates a total of six locations across the United States. These include company-owned showrooms in Austin, Texas, and franchise-owned locations in Nashville, Tennessee; Raleigh, North Carolina; Overland Park, Kansas; Salt Lake City, Utah; and Lubbock, Texas.
What is the total investment required to open a Cabinet IQ franchise?
The total investment required to open a Cabinet IQ franchise ranges from $219,000 to $305,000.
What are the ongoing fees for a Cabinet IQ franchise?
Cabinet IQ franchisees pay a 6% royalty fee on gross sales for operational support. They also contribute up to 2% to the Brand Fund (currently 1%) and must allocate the greater of $4,500 per showroom (plus $1,000 for additional territories) or 4% of gross sales for local advertising, starting two months before opening. These fees ensure brand consistency and effective marketing.
What are the financial requirements to become a Cabinet IQ franchisee?
To become a Cabinet IQ franchisee, candidates are required to have a minimum net worth of $200,000 and at least $75,000 in liquid capital. These financial prerequisites ensure that franchisees possess the necessary resources to establish and operate their business effectively, covering initial investments and sustaining operations during the startup phase.
Who owns Cabinet IQ?
Cabinet IQ is owned by Michael Hartel, who founded it in 2016. Under his ownership, the company has grown to include both company-owned and franchise locations across the United States.
Disclaimer
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