Cabinet IQ franchise unit economics
Cabinet IQ franchisees run retail showrooms that sell and install kitchen cabinet and countertop projects in a protected territory.
Cabinet IQ franchise at a glance
In its 2026 FDD Cabinet IQ reports 2025 revenue and gross margin for 17 franchised outlets, 2 of which had a showroom open all year, and a full profit and loss statement for its affiliate showroom in Cedar Park, Texas.
The 2 Cabinet IQ franchised outlets with a showroom open all of 2025 averaged $1,129,828 of gross revenue, at 41.4% gross margin, according to Item 19 of Cabinet IQ’s 2026 FDD, issued 29 April 2026. The 2 in that group are 4%* of Cabinet IQ’s 53 franchised outlets. Fees paid to Cabinet IQ come to about 7.58%* of sales.
- A Cabinet IQ franchise with one territory costs $308,350 to $482,750 to open, including a $59,500 initial franchise fee, according to the brand’s 2026 FDD.
- Cabinet IQ charges a 6% royalty on gross sales with a minimum per territory that rises to $5,000 a month from month 37, plus a 1% brand fund and a $549 monthly technology fee per showroom.
- Cabinet IQ franchisees must spend the greater of 4% of gross sales or $4,500 a month per showroom on local marketing, plus $1,000 a month for each additional territory.
- The Cabinet IQ affiliate showroom in Cedar Park, Texas reported $2,383,388 of 2025 revenue, materials at 45.2% and an adjusted profit of 13.5%, before management wages.
- Cabinet IQ had 53 franchised outlets and 1 affiliate-owned outlet at the end of 2025, up from 21 franchised a year earlier, with 36 franchised openings in 2025.
These figures come from Cabinet IQ's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 7.58% fee share is an Averan calculation.
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Talk to Averan → Averan Cabinet IQ Conversion Package →- The 2 full-year franchised showrooms reported $747,495 and $1,512,162. Both are single-territory outlets, Huntsville and Overland Park, and 2025 was the first full year each had a showroom open. Overland Park reported 2.02 times* Huntsville’s revenue at a gross margin of 40.6% against 42.2%.
- At the affiliate showroom, materials were 45.2% of revenue and installation labor 12.6%. Cost of goods came to $1,377,598*, or 57.8%* of revenue, and gross profit to $1,005,790, or 42.2%. Disclosed expenses took a further 28.7%.
- The affiliate’s 13.5% adjusted profit excludes management wages. Item 19 says adjusted profit also leaves out interest, taxes, depreciation, amortization and other operating expenses. Its advertising line of $95,336 was raised to the 4% minimum; the affiliate’s actual spend was $87,516.
- The royalty minimum is charged per territory. It is $2,500 a month in months 13 to 24, $3,750 in months 25 to 36 and $5,000 from month 37. From month 37, 6% of sales passes the $60,000* yearly minimum at $1,000,000* a territory, so at Huntsville’s $747,495 the minimum would be 8.0%* of sales.
- Most outlets had not reported a full year with a showroom. Franchised outlets went from 21 to 53 in 2025, with 36 openings. Of the 17 outlets in Item 19, 7 reported July to December only and 7 had a showroom open for less than six months.
Full-year showrooms
How much does a Cabinet IQ franchise make?
| Measure | High | Average | Median | Low |
|---|---|---|---|---|
| Gross revenue | $1,512,162 | $1,129,828 | $1,129,828 | $747,495 |
| Gross profit margin | 42.2% | 41.4% | 41.4% | 40.6% |
| Ticket (project) | $150,956 | $25,106 | $17,759 | $1,257 |
Figures as printed. Franchisee figures are self-reported and unaudited. Gross profit margin is gross revenue less job material and labor costs. Ticket figures cover all projects at the two outlets.
The 2 franchised outlets with a showroom open all of 2025 averaged $1,129,828 of gross revenue. Huntsville reported $747,495 at 42.2% gross margin and Overland Park $1,512,162 at 40.6%. Each holds one territory, and 2025 was the first full calendar year each had a showroom open.
Average tickets at the two outlets were $20,800 and $29,413. Huntsville’s median ticket was $9,793 and Overland Park’s $25,725. A ticket is the gross revenue from one cabinet or countertop installation project.
Item 19 covers 17 franchised outlets open for all of 2025, in four groups. 2 had a showroom open all year, 7 had a showroom open 6 to 11 months and report July to December only, 7 had a showroom open less than six months, and 1 opened its showroom one day a week. Item 19 leaves out 39 outlets that were not open for the whole year.
The 7 outlets whose showroom was open less than six months reported full-year revenue averaging $523,487, with a median of $646,265. Their figures ran from $23,519 to $986,425, at gross margins of 26.8% to 43.2%. Their showrooms were open an average of 20 days in 2025. One of the 7 holds agreements for 2 showrooms with combined books.
The non-conforming outlet in Orlando reported $124,984 for the year at 48.7% gross margin. Item 19 says it opened its showroom one day a week.
Affiliate showroom
Affiliate showroom profit and loss, 2025
| Line | Amount | Share of revenue |
|---|---|---|
| Gross revenue | $2,383,388 | 100% |
| Materials | $1,077,291 | 45.2% |
| Installation labor | $300,307 | 12.6% |
| Gross profit | $1,005,790 | 42.2% |
| Sales payroll and commissions | $179,189 | 7.5% |
| Installation manager | $44,442 | 1.9% |
| Advertising and marketing | $95,336 | 4.0% |
| Royalty | $143,003 | 6.0% |
| National brand fund | $23,834 | 1.0% |
| Bank services | $627 | 0.0% |
| Insurance | $6,543 | 0.3% |
| Office supplies and software | $24,015 | 1.0% |
| Legal and accounting | $18,827 | 0.8% |
| Merchant account fees | $18,228 | 0.8% |
| Rent | $87,762 | 3.7% |
| Utilities | $16,907 | 0.7% |
| Repairs and maintenance | $14,522 | 0.6% |
| Showroom materials | $7,693 | 0.3% |
| Tools, supplies and consumables | $2,292 | 0.1% |
| Total disclosed expenses | $683,220 | 28.7% |
| Adjusted profit | $322,570 | 13.5% |
Every line as printed. This is the franchisor’s affiliate, in its eighth full year. Royalty and brand fund are the amounts the affiliate would pay as a franchisee. Rent is net of warehouse sublease income.
The affiliate showroom reported $2,383,388 of revenue and $322,570 of adjusted profit, 13.5% of revenue. That revenue is 2.11 times* the average of the 2 full-year franchised showrooms. Item 19 gives no profit figure for any franchised outlet.
Adjusted profit is gross profit less the listed expenses. Item 19 says it is not net profit and excludes management wages, interest, taxes, depreciation, amortization and other operating expenses. Sales payroll and commissions of $179,189 cover the sales staff.
Advertising and marketing is shown at $95,336, 4.0% of revenue, adjusted up to the required minimum. The affiliate’s actual spend was $87,516, a difference of $7,820*.
Each point of revenue at the affiliate is $23,834* a year. A one-point change in materials cost at this revenue would move adjusted profit by that amount.
At the affiliate’s average ticket of $28,290, its revenue is about 84* projects a year. Its median ticket was $18,047, its highest $265,955 and its lowest $1,000.
The affiliate also ran an Austin, Texas business, which it sold to a franchisee during 2025. That business is not in Table 1.
By location
Revenue by location, 2025
| Outlet | Territories | Period | Gross revenue | Gross margin | Revenue per territory * |
|---|---|---|---|---|---|
| Overland Park | 1 | Full year | $1,512,162 | 40.6% | $1,512,162 |
| Huntsville | 1 | Full year | $747,495 | 42.2% | $747,495 |
| Hilton Head | 1 | July to December | $2,189,101 | 44.4% | $2,189,101 |
| Denver | 3 | July to December | $841,127 | 33.6% | $280,376 |
| Scottsdale | 3 | July to December | $781,707 | 34.0% | $260,569 |
| Raleigh | 2 | July to December | $513,771 | 36.3% | $256,886 |
| Cary | 2 | July to December | $434,184 | 33.72% | $217,092 |
| Milwaukee | 2 | July to December | $391,749 | 48.7% | $195,875 |
| Ft Myers | 1 | July to December | $291,199 | 40.5% | $291,199 |
| Orlando (showroom one day a week) | 1 | Full year | $124,984 | 48.7% | $124,984 |
Revenue and margin as printed. July to December figures cover six months, not a year. The last column divides revenue by the printed territory count and is an Averan calculation. The 7 outlets with a showroom open less than six months are not named.
Hilton Head reported the highest figure, $2,189,101 for July to December 2025, on one territory. Its gross margin was 44.4% and its average ticket $35,498.
Gross margin across the named outlets ran from 33.6% at Denver to 48.7% at Milwaukee and Orlando. Across all franchised groups in Item 19, the lowest reported margin was 26.8%, in the group whose showroom was open less than six months.
The four outlets with two or three territories reported $195,875 to $280,376* per territory for July to December. The three single-territory outlets in the same group reported $291,199 to $2,189,101.
The Table 4 summary row does not match the named outlets. It prints a high of $1,926,305, an average of $689,701, a median of $487,102 and a low of $265,994. The seven named figures give a high of $2,189,101, an average of $777,548*, a median of $513,771 and a low of $291,199. The FDD does not explain the difference; the margin figures in the row do match.
Item 19 does not split outlets into quartiles or other performance bands. It groups them by how long the showroom was open in 2025 and names each outlet in the two groups with a showroom open six months or more.
Brand charges
Brand charges
| Charge | As printed | At the 2025 average, $1,129,828 * | At Huntsville, $747,495 * | At the affiliate, $2,383,388 * |
|---|---|---|---|---|
| Royalty | 6% of gross sales; minimum per territory $2,500 a month (months 13–24), $3,750 (25–36), $5,000 (37 on) | $67,790 (6%) | $60,000 (minimum) | $143,003 (6%) |
| Brand fund | 1% of gross sales, may rise to 2% | $11,298 | $7,475 | $23,834 |
| Local marketing spend | Greater of 4% of gross sales or $4,500 a month per showroom, plus $1,000 a month per additional territory | $54,000 (minimum) | $54,000 (minimum) | $95,336 (4%) |
| Technology fee | $549 a month per showroom | $6,588 | $6,588 | $6,588 |
| Paid to the brand (royalty, brand fund and technology fee), and share of sales | $85,676 (7.58%) | $74,063 (9.91%) | $173,425 (7.28%) |
Rates as printed in Item 6. Averan applied the month 37 royalty minimum to every column; Item 19 does not give each outlet’s royalty month. Local marketing is paid to third-party suppliers, not to the brand.
The royalty is 6% of gross sales, subject to a monthly minimum per territory from month 13. The minimum is $2,500 a month in months 13 to 24, $3,750 in months 25 to 36 and $5,000 from month 37, or $30,000, $45,000 and $60,000* a year. There is no rollover credit for months when 6% exceeds the minimum.
From month 37, 6% passes the minimum at $1,000,000* of gross sales a territory. In months 13 to 24 the point is $500,000* and in months 25 to 36 it is $750,000*. An owner with three territories has a minimum of $180,000* a year from month 37.
Local marketing is the greater of 4% of gross sales or $4,500 a month for each showroom, plus $1,000 a month for each additional territory. For one territory that is $54,000* a year, and 4% passes it at $1,350,000*. The requirement starts 30 days before in-person training.
The brand fund is 1% of gross sales and may rise to 2%. The technology fee is $549 a month per showroom and may rise by up to 10% a year or the U.S. inflation rate, whichever is greater.
Owners must also use designated vendors for some services. Item 6 lists a laptop lease at $150 a month, a bookkeeping service at $445 to $615 a month depending on gross sales, and software such as Design 20/20 at about $2,295 a year. Other charges include a customer review non-compliance fee of $90 a week, a transfer fee of the greater of 20% of the franchise fee or $10,000 per territory, and a termination fee of at least $150,000 per territory if the agreement ends through the owner’s default.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $53,550 | $59,500 |
| Marketing activation, showroom design and software implementation fees | $8,500 | $8,500 |
| Rent, first 3 months | $10,000 | $21,000 |
| Lease, utility and security deposits | $6,300 | $10,500 |
| Improvements | $185,000 | $295,000 |
| Construction management | $0 | $20,000 |
| Exterior signage | $5,000 | $8,000 |
| Grand opening advertising | $18,000 | $18,000 |
| Additional funds, 3 months | $15,000 | $25,000 |
| Other items (travel, insurance, professional fees, supplies, technology, licenses) | $7,000 | $17,250 |
| Total | $308,350 | $482,750 |
Lines as printed, except two grouped rows that Averan summed: the three $2,500, $3,500 and $2,500 pre-opening fees, and six smaller lines. The low franchise fee reflects the 10% veterans’ discount.
A base territory costs $308,350 to $482,750 to open, of which $62,050 to $68,000 is paid to the franchisor. Improvements to a showroom of about 2,000 square feet are the largest line, at $185,000 to $295,000.
A base territory plus one additional territory costs $359,950 to $534,350. The second territory adds a $47,600 franchise fee and $4,000 of opening marketing. Households above 100,000 cost $0.65 each, and the franchisor generally grants no more than 20,000 extra.
The estimate does not include cabinets and countertops for customer jobs. The FDD says customer deposits generally cover them. The additional funds line covers three months of staff and operating costs and excludes an owner’s salary.
The franchise must open within five months of signing and the showroom within nine months. The FDD estimates 75 to 115 days to open the franchise and four to eight months to open the showroom; the franchise operates before the showroom opens.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Opened | Terminated | Non-renewed | Reacquired | Ceased other | Franchised at end | Affiliate-owned at end |
|---|---|---|---|---|---|---|---|---|
| 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 2 |
| 2024 | 1 | 20 | 0 | 0 | 0 | 0 | 21 | 2 |
| 2025 | 21 | 36 | 1 | 0 | 0 | 3 | 53 | 1 |
As printed in Item 20 Tables 1, 3 and 4. An outlet is one showroom built or to be built; one franchise agreement may cover several territories.
Franchised outlets grew from 1 at the end of 2023 to 53 at the end of 2025. 36 opened in 2025, 1 was terminated and 3 ceased operating for other reasons. Table 1 prints the 2024 franchised net change as +22, while its start and end counts of 1 and 21 give +20.
The affiliate had 2 outlets in Texas until 2025, when it sold 1 to a franchisee. It had 1 at the end of 2025.
There were no transfers between franchisees in 2023 to 2025. At the end of 2025, 9 franchise agreements were signed but not opened, and the franchisor projected 32 franchised openings in 2026.
Texas had the most franchised outlets at the end of 2025, with 12. North Carolina had 5, Florida and Georgia 4 each, and Colorado and Tennessee 3 each.
Questions we get asked
Questions owners ask
How much does it cost to open a Cabinet IQ franchise?
The 2026 FDD estimates $308,350 to $482,750 for a base territory, including a $59,500 initial franchise fee. Showroom improvements are the largest line, at $185,000 to $295,000. A base territory plus one additional territory is estimated at $359,950 to $534,350.
What fees does Cabinet IQ charge?
A 6% royalty on gross sales with a minimum per territory of $2,500 to $5,000 a month depending on the month of the agreement, a 1% brand fund that may rise to 2%, and a technology fee of $549 a month per showroom. Owners must also spend the greater of 4% of gross sales or $4,500 a month per showroom on local marketing.
How much revenue does a Cabinet IQ franchise make?
The 2 franchised outlets with a showroom open all of 2025 averaged $1,129,828 of gross revenue, with $747,495 and $1,512,162 reported. The affiliate showroom in Cedar Park, Texas reported $2,383,388. Other franchised outlets reported six months or had a showroom open part of the year.
How much profit does a Cabinet IQ showroom keep?
Item 19 gives profit for the affiliate showroom alone: adjusted profit of $322,570, or 13.5% of revenue, in 2025. Adjusted profit excludes management wages, interest, taxes, depreciation and amortization. For franchised outlets the FDD reports gross margin, which ran from 26.8% to 48.7%.
How many Cabinet IQ locations are there?
At the end of 2025 there were 53 franchised outlets and 1 affiliate-owned outlet, up from 21 franchised and 2 affiliate-owned a year earlier. 36 franchised outlets opened in 2025 and 4 left the system.
What territory does a Cabinet IQ franchise get?
A protected, non-exclusive territory of up to 100,000 owner-occupied households, which can be enlarged at $0.65 per extra household. Protection can be revoked if the owner breaches the agreement or lacks the staff and equipment to serve the territory.
Questions worth putting to Cabinet IQ
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Cabinet IQ see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Cabinet IQ locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
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Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Cabinet IQ Franchising, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Cabinet IQ is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Cabinet IQ Franchising, LLC, 2026 Franchise Disclosure Document, issued 29 April 2026.