Kitchen Refresh (2) Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment (range): $21,280 to $133,950
• Franchise Fee: $28,500 for a Tier 1 franchise
• Royalty: Not clearly disclosed in the available fee fields
• Marketing / Ad Fee: Required minimum local marketing and advertising spend of $500 weekly
• Key additional recurring fees (if meaningful): Lead Nurturing Services Fee of $100 weekly; possible site extension fee of $2,500; opening delay charge of $500 monthly; non-compliance fee of $500 per week; late reporting fee of $500 plus $50 per day in some cases
• Number of locations: 8 franchised outlets at year-end 2024; 0 company-owned outlets disclosed
• Best Fit: Manager-led or active-oversight owner

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The estimated initial investment ranges from $21,280 to $133,950, with a midpoint around $77,615. That places it in a lower startup band on an absolute basis, although the upper end is materially higher than the minimum and suggests costs can vary depending on setup choices and local conditions.

Major disclosed startup cost drivers include:

• Initial franchise fee: $28,500 for Tier 1
• Training expenses: $0 to $8,000
• Premises deposits: $300 to $2,500
• Leasehold improvements, construction and/or remodeling: $500 to $13,000
• Studio products display: $500 to $3,500
• Furniture, fixtures and supplies: $500 to $2,000
• Exterior and interior signage: $500 to $6,000
• Tools and equipment: $100 to $5,500
• Additional funds: $7,200 to $25,000

The presence of premises, leasehold improvements, signage, displays, and tools suggests this is not a purely home-based model. Even though the entry cost is not especially high in dollar terms, it still appears to require physical setup, equipment, and working capital.

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Disclosed recurring and event-driven fees include:

• Local marketing and advertising: $500 weekly minimum
• Lead Nurturing Services Fee: $100 weekly
• Site Extension Fee: $2,500 as incurred
• Opening Delay Charge: $500 monthly, as incurred
• Non-Compliance Fee: $500 per week until cured in some cases
• Late Charge: $50 as incurred
• Late Reporting Fee: $500 upon missing deadline, plus $50 per day in some cases
• Internal Systems Fee: not currently established, but the franchisor states it may impose one later

The disclosure does not clearly establish the royalty rate or any brand fund contribution in the available fee fields. Based on what is disclosed, the ongoing burden includes fixed weekly marketing and lead-related spending, plus several operational penalty or delay fees that could matter if execution slips.

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Yes, the FDD includes Item 19 financial performance data, but it is limited and should be read carefully.

Disclosed 2024 figures for franchised outlets self-reporting financial information for at least six months during 2024:

• Average gross sales: $985,899
• Median gross sales: $688,706
• Gross sales range: $29,139 to $1,867,641
• Average number of jobs: 55
• Number of jobs range: 3 to 105
• Average largest project: $41,024
• Largest project range: $12,974 to $68,125
• Median largest project: $41,325
• Average smallest project: $3,891
• Smallest project range: $5,535 to $6,682
• Median smallest project: $6,221
• Average labor cost: $381,640
• Labor cost range: $0 to $980,000
• Median labor cost: $257,851
• Average material cost: $470,263
• Material cost range: $17,476 to $1,107,395
• Median material cost: $391,441

Important context from the disclosure:

• As of December 31, 2024, there were 8 franchised outlets operating in 10 territories for at least six months
• The financial representation covers 7 franchised outlets that self-reported information for at least six months during 2024
• The table itself reports that 4 outlets met or exceeded the average on the listed measures
• The disclosure states these are historic results and that individual results may differ

What the numbers suggest:

• Revenue spread is very wide, from $29,139 to $1,867,641 in gross sales
• The average is well above the median, which usually indicates that higher-performing outlets pulled the average up
• Job count also varies sharply, from 3 to 105, which points to uneven production levels across operators
• Labor and material costs are substantial in dollar terms, so even high revenue does not indicate profit

Revenue is not profit. The disclosure provides gross sales and some operating cost categories, but it does not provide net income, owner earnings, or full expense detail. The figures are self-reported, and the disclosure does not clearly establish that they were audited.

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• Customer type: The disclosure gives mixed signals, but the operating model appears hybrid rather than clearly pure B2C or pure B2B
• Revenue pattern: Primarily project-based rather than subscription-based
• Operating characteristics: Territory-based business with jobs completed, project pricing, labor and material inputs, technology use, and equipment requirements
• Physical footprint: Appears to involve premises, displays, signage, and leasehold-related costs
• Management model: Best understood as manager-led or active oversight rather than passive ownership

The disclosure also indicates that a dedicated manager is required. That makes this less suited to a fully passive structure.

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Advantages

• Startup investment is moderate in absolute dollars, with a disclosed range of $21,280 to $133,950
• Item 19 includes actual gross sales, job counts, and labor/material cost figures rather than only broad narrative statements
• System growth in 2024 was positive, with franchised outlets increasing from 3 to 8
• No company-owned outlets are listed, so the system appears to be entirely franchised in the disclosed period

Considerations

• Revenue results vary substantially, with gross sales ranging from $29,139 to $1,867,641
• Median gross sales of $688,706 are materially below the average of $985,899, suggesting uneven performance
• Ongoing required local marketing spend of $500 weekly and lead nurturing fees of $100 weekly create fixed recurring obligations
• The disclosure does not clearly establish the royalty rate, which limits a full view of recurring fee burden
• The model appears operationally involved, with manager requirements, project execution, labor coordination, and material cost exposure

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This franchise may fit an owner who is comfortable managing a project-driven operation with labor and material coordination, and who can actively oversee a territory-based business. It may also fit someone willing to work within a manager-led structure rather than relying on passive ownership.

It likely does not fit someone seeking a simple low-touch model, a clearly defined passive ownership structure, or highly predictable unit-level revenue outcomes.

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• Territories are non-exclusive, which can limit geographic protection
• The franchise agreement term is 10 years, creating a long contractual commitment
• North Dakota law and North Dakota venue provisions are referenced in the disclosure, subject to applicable state law
• Certain defaults appear to have short cure periods, including 5 days for non-payments and some other defaults
• The franchisor states it may impose an Internal Systems Fee in the future even though one is not currently established

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Kitchen Refresh (2) presents a relatively accessible initial investment range and includes actual historical revenue data, but the operating results shown in Item 19 are highly dispersed. The main tradeoff is lower upfront cost versus a hands-on, project-based model with meaningful variability in gross sales and incomplete visibility into total ongoing fee load and profit.

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