Cabinet IQ

Item 7 lays out the financial entry: franchise fee of $59,500, total initial investment ranging $298,350 to $454,750, covering showroom buildout, inventory, and vehicles. Ongoing fees per Item 6 include 6% royalty on gross sales, 2% brand fund, and a $499 monthly technology fee—standard for services but adding up on $519K average gross revenues disclosed in Item 19. Notably, average and median gross sales both hit $519,265 across the 15 franchised units (plus 2 corporate), suggesting reliable performance without outliers skewing the top line; however, no net profit figures mean operators must subtract costs (typically 60-70% in remodeling) to gauge true EBITDA, likely landing in the $100K-$150K range for top performers.

System health metrics reveal a young but aggressive expander: franchising since 2022 with 15 locations, projecting 20 new units soon, per FDD projections. Nine SBA loans averaging $297,833 (near the low-end investment) indicate lender confidence despite limited track record, with low default signals. No contraction data like high terminations is a green flag, but the small sample size (13 units in Item 19) warrants caution—success here demands sales savvy in competitive territories against big-box remodelers. For hands-on investors, Cabinet IQ offers scalable revenue potential if growth sustains.