My Franchise CPAs: Franchise Focus • Budget Blinds
Franchise Focus – Budget Blinds
If quick startup, quick breakeven, and quick profitability are important to you, we have the franchise for you.
Let us introduce you to Budget Blinds, the #1 window coverings (blinds, shades, etc) franchise in America.
Quick facts about Budget Blinds
Date Established: 1992
Franchising Since: 1994
Number of Units (est): 1,155
Initial Fee: $89,950 ($19,950 initial franchise fee + $70,000 initial territory fee)
2nd Territory fee: $60,000 (ONLY if purchased at same time as initial territory)
VETERANS – Discount: $15,000 off initial territory fee
Term of Franchise Agreement: 10 years with option for renewal
Royalty Structure: Progressive fixed monthly royalties
$300/mo – Months 1-6
$700/mo – Months 7-12
$1,100/mo – Months 13-24
$1,500 from then on
Advertising Fee: $1,000/mo
Technology Fee: $94.50/mo
Telephone Fee: $45/mo/line
Initial Training: Free for up to two attendees
Estimated initial investment: $110K – $236K
Typical gross margin: 50-60%
Typical net margin: 15-25%
2017 Budget Blinds Financial Figures
Average Sales – One Territory: $572,285
Average Sales – Two Territories: $1,010,716
75th Percentile (high end) – One Territory: $697,215
25th Percentile (low end) – One Territory: $299,029
Average cost of sales: 47%
Average sales call closing rate: 70%
A day in the life of a Budget Blinds Franchisee
Budget blinds is a window coverings franchise. This involves going people’s homes, analyzing and assessing their blinds, shades and other window coverings needs, and delivering and installing blinds and shades into their home.
So what makes Budget Blinds special?
Why would it be better to purchase a Budget Blinds vs. just operating your own window coverings business?
There are several reasons.
• Supplier Relationships
When you purchase a Budget Blinds (as well as most franchises), you get to work with their supplier relationships. The suppliers provided by Budget Blinds know exactly what you need and when you need it. They also work very well with the technology system setup of Budget Blinds, so your business works like a well-oiled machine.
• Just-In-Time Inventory
When you own a Budget Blinds, you don’t purchase thousands of dollars of blinds and shades and have them sit in your home until a customer decides to buy them. Holding onto inventory is very costly. Instead, within Budget Blinds’ procurement and POS software (TouchPoint), when a customer agrees to purchase from you, an order is automatically made for the exact amount of inventory you need to fulfill the order. This way, you never purchase more inventory than you actually need, which is a big plus to your gross margin.
• A Household Name
Which over 1,000 franchisees nationwide and status as the biggest window coverings franchise in America, Budget Blinds truly is a household name. With recognition comes a much easier sales process. Since potential customers will already be familiar with your business, they will be more likely to buy from you. This is one of the biggest advantages of going the franchise route, and Budget Blinds has well-cemented their status as a go-to for all window coverings needs.
• A Turnkey Franchise
As franchises mature, they establish systems that allow pretty much anyone to step in, take the reins, and get to work with minimal issues. Budget Blinds is an example of a turnkey franchise. From technology to operations to procurement to sales, every system that is vital running a successful business has been thought of and designed well.
Budget Blinds truly is a great investment. But, it is just that: An investment. As with any investment, do your homework, do your research, and make an informed decision. We do not recommend any investment decisions.
The purpose of this post is just to provide you detailed information you may use in making your decision. If you do decide to purchase a Budget Blinds, or any other franchise, we can help you from pre-decision to opening the doors to your new business.
To schedule a call with one of our franchise experts today, click HERE.