About DREAMMAKER BATH & KITCHEN BY WORLDWIDE Franchise
DreamMaker Bath & Kitchen is a home remodeling franchise specializing in bathroom and kitchen renovations.
The brand has been franchising since 1996, establishing itself as a trusted name in the home improvement industry with a focus on quality craftsmanship and a customer first design process.
The franchise fee ranges from $40,000 to $54,000, with additional fees of $200 per 1,000 population for larger territories.
DREAMMAKER BATH & KITCHEN BY WORLDWIDE Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 to $54,000 plus $200 per 1,000 additional population | One-time payment upon signing |
| Royalty Fee | 7% to 3% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales for the first $1,000,000 per year, then 1% of Gross Sales for sales exceeding $1,000,000 (capped at $40,000 for new franchisees in 2022) | National brand fund |
| Total Investment Range | $209,775 – $396,650 | Includes build-out, inventory, working capital |
The investment range of $210K–$397K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% to 3% of Gross Sales) and marketing fee (2% of Gross Sales for the first $1,000,000 per year, then 1% of Gross Sales for sales exceeding $1,000,000 (capped at $40,000 for new franchisees in 2022)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $54,000 |
| Software Support Fee | $2,995 | $2,995 |
| Vehicle | $0 | $9,000 |
| Equipment, Supplies & Inventory | $28,555 | $32,555 |
| Insurance | $7,500 | $10,000 |
| Initial Advertising & Promotional Deposit | $36,000 | $48,000 |
| Training, Travel, Lodging & Food | $4,000 | $7,500 |
| Deposits, Permits & Licenses | $0 | $2,000 |
| Real Estate | $62,000 | $125,000 |
| Professional Fees | $8,225 | $11,600 |
| Additional Funds – 9 to 12 mo. (includes estimated personal living expenses for 6 to 12 mo.) | $18,000 | $91,500 |
| Refundable Design Center Buildout Deposit | $2,500 | $2,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $1,500 for transfer to a controlled entity; 10% of selling price or $20,000 (whichever is greater) for other transfers |
| Renewal Fee | $7,500 |
| Technology Fee | $250 Monthly (includes two user seats, $125 per additional user seat per software) |
| Audit Fee | Cost of audit plus expenses if underpayment is 3% or more |
| Minimum Royalty Fee | $200 per week (increasing with population and inflation) |
| Minimum MAP Fee | 1% of Gross Sales 'rolled in' (if applicable) |
| Advertising Cooperative | Determined by members, maximum 2% of Gross Sales |
| Required Advertising Spending | 5% of annual Gross Sales (2nd year), 3% of annual Gross Sales (3rd year and beyond) |
| Additional Voluntary or Mandatory Training | $350 to $1,000 per person per day (plus actual costs for on-site training) |
| Convention Registration Fee | $350 to $495 per person (discounts for early registration, separate charges for non-participants) |
| Continuing Education Fee | $200 per month |
| Construction Design Review Fee | $2,500 (plus $2,000 travel fee if unapproved plans) |
| Warranty Escrow Upon Transfer | Up to 10% of sales price (held for one year, subject to claims and fees) |
| Administrative Enforcement Fee | $500 per violation/enforcement action and 1% of Gross Revenue (during noncompliance) |
| Software Administrative Enforcement Fee | $1,000 per occurrence |
| Dishonored Check or ACH Draft | $75 |
| Interest | 12% on unpaid balances or maximum legal rate |
| Failure to Maintain Insurance | Our actual cost |
| Amendment Fee | Actual out-of-pocket costs, minimum $1,000 |
| Unapproved Vendors Review Fee | Actual out-of-pocket costs of inspection, review, or testing |
| Liquidated Damages | Formula based on two-year Royalty Fee history or violation length |
| Tax Reimbursement | Varies according to tax |
| Holdover Amounts | Royalty Fee and MAP Fee payments will equal 150% of standard rates |
| Indemnification | Varies according to loss |
| Brand Protection Fund | $5,000 (nonrefundable contribution) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Foundations Prep Training (5 weeks, via phone/webinar/self-study), Foundations Core Training (17 hours over 6 business days, via webinar), Simulation Training (6-8 weeks, self-study, sales training, role play, shadowing, marketing assignments, vendor visit, 24 hours online design courses), 8-week sales and sales management training program (1 two-hour class per week). |
| Classroom Training | 17 hours (Foundations Core Training) |
| On-the-Job Training | Simulation Training includes shadowing employees at an existing franchise location, but specific hours are not quantified. |
| Training Location | Foundations Core Training is currently via webinar, but may be in-person at Waco, Texas headquarters or other designated locations. Simulation Training involves self-study, role-play, and a required visit to a preferred cabinet vendor (virtually or in-person). Sales and sales management training is at a third-party location or by webinar. |
| Additional Training | Franchisees must attend the annual 'Reunion' and one of two other programs (January Workshop or other Qualified Training Events) annually. Refresher or advanced training may be required. Additional employees can attend Foundations Core Training for $1,500 per person. Additional sales and sales management training for employees costs $3,600 per person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Generally 200,000 to 1,000,000 population |
| Description | Franchisees do not receive an exclusive territory. While the franchisor will not operate or grant other franchises using the Marks within the franchisee's specified geographic territory, the franchisor reserves all other rights, including selling products/services through alternate channels (internet, mail order, etc.), engaging in other business activities under different trademarks within or outside the territory, and appointing others to perform services for National Account Customers or if the franchisee is unable/unwilling to perform. Territory population is subject to annual increase based on U.S. Census Bureau estimates. Franchisees may not solicit customers or advertise outside their territory without prior written consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $7,500 |
| Renewal Conditions | Franchisee must not be in default, satisfy all monetary obligations, sign a general release, renovate the business to current image requirements, pay the renewal fee, comply with current qualifications and training, and sign the then-current franchise agreement (which may have materially different terms and fees). |
| Transfer Fee | $1,500 for transfer to a controlled entity; 10% of selling price or $20,000 (whichever is greater) for other transfers. |
| Transfer Conditions | Assignee must be qualified, assume all obligations (or sign new agreement), sign Undertaking and Guaranty (if entity), franchisee must be in full compliance, provide sales contract, sign general release, pay transfer fee, assignee completes training, escrow for warranty claims (up to 10% of sales price), and franchisor has right of first refusal. |
| Termination for Cause | Franchisor can terminate immediately for non-curable defaults (e.g., insolvency, material misrepresentation, abandonment, felony conviction, disclosure of confidential information, false records, misuse of Marks, public health threat, failure to provide audited financials, default on promissory note (excluding nonpayment), repeated defaults). For curable defaults (e.g., failure to pay, submit reports, observe standards, obtain consent, maintain insurance), franchisee has 15 days to cure (subject to state law). |
| Non-Compete Period | During the term of the franchise agreement and for two years immediately following termination, expiration, or non-renewal. |
| Non-Compete Details | During the term, franchisee cannot engage in or benefit from a Competitive Business (unless approved and identified on Exhibit B-1), employ/solicit franchisor/franchisee employees, interfere with business relationships, use confidential information damagingly, or divert customers. Post-term, these restrictions apply for two years in the territory (except for approved Competitive Business owned at signing). The scope of the covenant can be reduced by the franchisor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, the franchisee must directly perform or supervise the operation. If a legal entity, a designated shareholder/owner (Operating Principal) must directly supervise, having successfully completed training. A full-time office manager dedicated to the franchise operation is also required. |
| Required Suppliers | Franchisee must purchase certain customized software templates, software, and initial and ongoing training and support services from franchisor's current financial technology and software vendors. Telephone service must be acquired from designated providers. Certain proprietary products and Private Label Products must be purchased from franchisor, its affiliate, or designated suppliers. A list of approved suppliers for other items will be provided. |
| Supply Restrictions | All advertising and promotional materials, signs, and other designated items must bear the Marks as specified. Insurance policies must be from companies with an A.M. Best rating of not less than A-VII. Computer hardware, software, office supplies, furniture, displays, samples, and trademarked items must meet franchisor's specifications. Franchisee must use QuickBooks Enterprise Solutions and sync accounting files with Qvinci. Construction plans for franchised location must be approved. Unapproved vendors may be proposed but require written request, inspection, review, and/or testing at franchisee's expense. |
| Franchisor Revenue from Suppliers | During the fiscal year ending December 31, 2021, franchisor derived $68,082.63 (2.13% of total revenues) in commission revenue from preferred vendor programs. Franchisor derived $183,960.51 (5.76% of total revenue) from the purchase of development packages or other products purchased directly from them. Franchisor or its former affiliates may receive commissions from capital lease or equipment finance brokerage. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may finance a portion of the initial franchise fee for qualified prospective franchisees, up to a maximum of 70% of the initial franchise fee. The amount financed is limited to less than 50% of the total equity, debt, and other financial support of the business. Interest rates vary based on credit score (8.5% to 10%). A promissory note is required, with monthly payments starting approximately three months after Foundations Core Training, typically not exceeding five years (cannot exceed seven years). A security interest in the franchise assets is required. Franchisor may refer to third-party lenders but has no current arrangements or income from such referrals. |
DREAMMAKER BATH & KITCHEN BY WORLDWIDE Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
DREAMMAKER BATH & KITCHEN BY WORLDWIDE Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DREAMMAKER BATH & KITCHEN BY WORLDWIDE System Growth
DREAMMAKER BATH & KITCHEN BY WORLDWIDE currently operates 43 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 4 | 4 | 34 |
| 2020 | 2 | 2 | 34 |
| 2021 | 9 | 0 | 43 |
Transfers: 2 | Closures: 6
State Registrations
Registered in 9 states: CA, IL, MD, MI, MN, NY, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Independent Auditors for year ending December 31.
DREAMMAKER BATH & KITCHEN BY WORLDWIDE Franchise — FAQ
Similar Home Services Franchises
Interested in DREAMMAKER BATH & KITCHEN BY WORLDWIDE?
Get free info on this franchise. We will send you a detailed FDD report by email.