For all potential investors interested in starting a window covering business, we will outline Budget Blinds franchise cost and how much fees this franchisor charges its franchisees. Also, we will reveal how much profit per year can expect from this brand’s franchised location’s owner.
Key Takeaways
- With more than 1,300 franchise locations spread across U.S and Canada, this company is the leading brand in the window covering industry.
- Entrepreneurs who want to start a new Budget Blinds franchise can expect a cost of between $125,580 to $192,900.
- The significant portion of starting cost that investors will need to bear will go for an Initial Franchise Fee of $19,950 and an Initial Territory Fee of $70,000.
- The average earning Budget Blinds franchise generates $697,019 gross revenue per year with a 25% of profit margin.
- The Budget Blinds franchise owner, who operates an average earning location, can expect to make $174,000 of profit per year.
- The franchise applicant must meet this franchisor’s finance requirements and own at least $69,580 in Liquid Assets.
What is Budget Blinds
Budget Blinds is a brand whose core business is to provide residential and commercial customers with sales and installation of window coverings. This company sells shutters, mini blinds, wood blinds, vertical blinds, draperies, pleated shades, cellular shades, roman shades, roller shades, and solar shades.
This brand is most widespread in U.S and Canada and has more than 1,300 franchised locations in total.
The Interior Design Industry has generated $24bn of sales in 2022, and it is anticipated that industry revenue growth will be continued in the future as well. As a part of the high-growth industry, this company has a bright future, and every year more investors opt to start a franchise in this branch of business.
By applying to become a Budget Blinds franchise owner, you can expect to operate a business which in offer has the retail sale and installation of blinds and other window coverings within the territory assigned to you.
These franchises generate sales in many ways, including local digital marketing such as pay-per-click, social media, digital listings, etc. It means that there is not necessary to rent office/storage space; that reduces operating costs to a minimum so the owner can expect that his business will deliver a high-profit margin.
How Much Does The Budget Blinds Franchise Cost
Starting the Budget Blinds franchise will cost investors in the range of $125,580 to $192,900. This prediction about starting costs includes the cost of the Initial Licensing Fee and all other expenses that will occur before opening day.
The highest starting cost will be an Initial Franchise Fee of $19,950 and an Initial Territory Fee of $70,000.These two fees are a combined $89,950 in total, and by paying them, investors get the right to conduct business in a territory that usually consists of at least 30,000 households.
Also, a big portion of this brand franchise’s starting cost will go for expenses related to buying or leasing a white commercial-grade cargo van.
This type of working vehicle usually costs between $10,000 and $48,000, depending on whether it is used or a new one.
We don’t recommend that new franchise owners purchase a vehicle for cash unless they still have at least that same amount of funds available as additional working capital to operate a business in the first few months. Hence, leasing is the best option for most investors.
Budget Blinds franchise list of starting costs:
- Initial Territory Fee: $70,000
- Initial Franchise Fee: $19,950
- Work Vehicle: $10,000 – $48,000
- Initial Marketing(first three months): $10,000 – $15,000
- Travel and Living Expenses: $250 – $500 – the initial training cost
- Computer Equipment: $1,500 – $2,500
- Credit Card Processing Technology: $30 – $500
- Auto Insurance: $500 – $2,400
- Commercial general liability insurance: $500 – $2,400
- Contractor’s License and Bond: $0 – $1,500
- Professional Fees: $750 – $3,500
- Additional Tools and Supplies: $100 – $1,500
- Working Capital (First 3 Months): $12,000 – 25,000
- TOTAL ESTIMATED INVESTMENT COST: $125,580 – $192,900
This Budget Blinds franchise starting cost estimation does not include office/workspace expenses! So if you decide to obtain an office outside of your home, your initial investment will be higher depending on your area’s real estate or leasing marketing conditions.
Budget Blinds Franchise Fees
One-Time Fees
As we mentioned above, the new owner of the Budget Blinds franchise will need to pay an Initial Fee of $19,950, and by paying it, an investor gets a complete Start-Up Package (i.e., van wrap, samples, etc.) and initial training for two persons.
This franchisor offers a discount on the Initial Fee of 15% for new franchisees who are still serving or are honorably discharged veterans of the United States armed forces and their spouses.
Also, there is a cost of $70,000 for the Initial Territory Fee, and by paying it, the franchise owner gets protected rights to conduct his business on the territory defined by the franchise agreement.
Investors can buy rights to more than one territory and have the right to a specific discount regarding the Initial Territory Fee. The discount is $10,000, so an investor who opts for a scaling business will need to pay this fee of $60,000 for every new territory they buy.
Ongoing Royalty Fees
The Budget Blinds franchise royalties are a Royalty Fee charged from $300 to max. $2,000 per month, and National Advertising Fund Fee will cost the owner from $1,000 to max .$1,500 per month.
This franchisor charges its Royalty Fee and National Advertising Fund Fee in a flat amount every month. This deal can be an advantage and disadvantage; the owners who can generate more monthly sales will benefit from this because they will not pay this fee according to the gross sales.
It is good to mention that franchisees will pay a reduced Royalty Fee in the first few months. It is good practice because the owner can’t expect that new business will make high gross sales before it is established on the market and among potential customers.
Budget Blinds franchise Royalty Fee is charged as follows:
- $300 – months 1-6
- $700 – months 7-12
- $1,100 – months 13-24
- $1,500 – months 25–36
- $2,000 from then on
Every franchise owner is obligated to pay $1,000 per month to the National Advertising Fund for so long as the company has fewer than 1,500 franchises granted nationwide. Once this brand establishes 1,500+ franchises, they will increase this fee to $1,500; this company currently has 1,320 franchise units.
Budget Blinds franchise list of ongoing fees:
- Royalty Fee: $300 – $2,000 per month
- National Advertising Fund Fee: $1,000 -$1,500 per month
- Technology Fee: $250 per month
Budget Blinds Franchise Profit
The average earning Budget Blinds franchise makes $697,019 of gross sales per year with a profit margin that is at least 25%. The business owner who can fulfill the company average can expect to earn a $174,000 salary per year.
It is good to know that the lowest amount reported for a single territory franchisee was $97,918, and the highest was $5,414,308 of gross sales by the end of 2021. The lowest amount reported for franchisees with two territories was $194,056, and the highest was $6,950,000. The lowest amount reported for franchisees with three or more territories was $448,037, and the highest was $8,041,337.
How We Calculated Budget Blinds Franchise Owner Salary
We have collected all the above information regarding Budget Blinds gross sales per year from this company’s Franchise Disclosure Document. It means that data come from franchise owners operating existing businesses.
Also, according to their FDD, the average cost of goods sold was 46% of the gross (retail) sales price.
So from 54% of gross sales, we need to deduct leasing and other automobile costs, general liability and other types of insurance, royalties and advertising expenses, federal, state, and local taxes, and financing expenses.
So the owners who don’t hire too many workers and do a lot of work by themself can make Budget Blinds franchise profit margin that is at least 25% of all the gross sales the business generates per year.
Sole owner/operator or Partnership, including with spouse, and operating business from a home office is the best approach for those investors who want to extract high-profit margin from their Budget Blinds franchise.
Budget Blinds Franchise Requirements
Budget Blinds franchise applicants need to have a Net Worth of $150,000 and $69,580 in Liquid Assets to be approved as a new franchise owners. These are two main financial requirements that every franchisee must meet.
Every franchise owner is obligated to purchase window coverings and all components of window coverings and other products necessary for work from the franchisor directly or from their affiliates and approved suppliers.
Before the opening day of Budget Blinds, franchised business owner and at least one worker must complete the franchisor’s initial training program.
How Much is Budget Blinds Franchise Agreement Duration
The first Budget Blind franchise agreement is ten years; after that, the franchise owner needs to renew it and pay the renewal fee if they want to continue using trademarks and operation manuals of this company.
Who is The Owner of Budget Blinds
This brand has been owned by JM Family Enterprises, Inc since 2019, when this company purchased Home Franchise Concepts. This brand provides franchise opportunities under Budget Blinds, LLC, a company headquartered in California.
Summary
The Budget Blinds is a medium-cost franchise opportunity with high-profit margin potential. However, potential franchise applicants must be aware that this type of business can’t be a passive investment, so it is highly recommendable that the owner takes part in everyday work operations.