Cabinet Iq Franchise Cost & 2026 FDD Data
75/100
Strongest tier
75 this brand56 Home Services medianlikely 69–81: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#315 of 3,068 graded brands
Why an A: Helped by legal record and transparency. See all six factors
- Total investment
- $308K – $483K
- Avg gross sales
- $1.1M
- “Full-year Showroom open throughout 2025 (2 outlets)”, 2 outlets; not profit
- SBA charge-off
- 17 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Cabinet Iq franchise requires a total initial investment of $308K – $483K, including a $60K franchise fee. Once open, the ongoing royalty is 6.0%. Per the 2026 FDD, average gross sales were $1.1M (Item 19 group “Full-year Showroom open throughout 2025 (2 outlets)”, 2 outlets; gross sales, not profit). Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Home Services median
Top edge: green = better than the Home Services median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $1.1M/year (outlet median $1.1M; includes company-owned outlets; Item 19 group “Full-year Showroom open throughout 2025 (2 outlets)”, 2 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 32 (36 opened, 4 closed).
- FLAGRevenue data based on only 2 outlets. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
AT STAKEOne unit at the Item 7 midpoint: $51K a year in payments on assumed SBA 7(a)-style terms.You put in about $79K of your own cash and personally guarantee a $316K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
- The Item 19 (sales and earnings) average rests on 2 reporting units. Treat it as directional.
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years and no lawsuit naming the franchisor in Item 3. Not on file here, so ask: SBA charge-off rate against the category median, jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 2.4× the Home Services median ($164K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Cabinet IQ Franchising, LLC (Item 1: 2419 S. Bell Blvd., Cedar Park, TX 78613) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $53.5K | $59.5K | |
| Custom Marketing & Services Activation Fee | $2.5K | $2.5K | |
| Showroom Design and Order Preparation Fee | $3.5K | $3.5K | |
| Software Implementation Assistance Fee | $2.5K | $2.5K | |
| Rent | $10K | $21K | |
| Lease, Utility, and Security Deposits | $6.3K | $10.5K | |
| Exterior Signage | $5K | $8K | |
| Improvements | $185K | $295K | |
| Construction Management | $0 | $20K | |
| Travel Expense to Training | $500 | $3K | |
| Insurance | $1.5K | $3.5K | |
| Grand Opening Advertising/Marketing (Lead Generation) | $18K | $18K | |
| Professional Fees | $1K | $5K | |
| Office Supplies and Promotional Items | $500 | $1.25K | |
| Technology, Computer, and Software | $3.5K | $3.5K | |
| Business Licenses and permits | $0 | $1K | |
| Additional Funds – 3 Months | $15K | $25K | |
| Total initial investment | $308K | $483K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| RoyaltyPercentage of sales; timing as set out in Item 6. Minimum: Minimum Royalty per Territory per month after month 13: $2,500 (months 13-24), $3,750 (months 25-36), $5,000 (month 37+), regardless of sales. | 6.0% of gross sales |
Marketing / ad fundThe filing's detailBrand-wide marketing pool. Currently 1% of Gross Sales monthly (Brand Fund Contribution), may be raised to a maximum of 2%. Separate Local Marketing requirement of greater of 4% of Gross Sales or Minimum Monthly Local Marketing Spend of $4,500 ... | 1.0% of gross sales |
Technology feeThe filing's detailTechnology Fee of $549/month per Showroom (up to 2 contiguous Territories sharing one Showroom pay a single fee); covers Cabinet IQ Smart CRM, Learning Center, Qvinci financial reporting, and design portal. May increase up to 10%/year or CPI, whichever greater, compounding. | $549/month |
| Transfer fee | $10,000 |
| Renewal fee | $5,000 |
| Total fee loadbelow the Home Services median of 8.0% (lean) | 7.0% of sales |
A 7.0% total fee load is below the Home Services median of 8.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 91% above the Home Services median ($593K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Cabinet Iq unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $1.1M (FDD p.46), and the royalty and ad fund take about $79K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $51K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $396K Item 7 midpoint is a $316K loan, paid over 10 years at 10.5%: $51K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $79K Assumption (the part the loan does not cover of the $396K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $316K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Cabinet Iq unit leave you each year after the loan payment?
Item 19: $1,129,828 average for 2 outlets (Full-year Showroom open throughout 2025 (2 outlets)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Minimum Royalty per Territory per month after month 13: $2,500 (months 13-24), $3,750 (months 25-36), $5,000 (month 37+), regardless of sales.”; “6% of Gross Sales, subject to Minimum Royalties beginning the 13th month after the effective date of the franchise agreement (see royalty_flat_fee_description for minimums).” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $308K to $483K
Item 7's $15K to $25K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $316K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Cabinet IQ Franchising, LLC
Financial performance
- Range (low → high)
- $747K→$1.5MSource: 2026 FDD, page 46
- Cohort dispersion (min → max)
Percentile ranks within Home Services
Each rank is among the Home Services brands that report that figure (the count is under each bar).
Item 19 · 4 groups · FDD pp.46, 47, 49, 50
Item 19 by group
The 2026 filing reports gross sales for 4 groups of outlets. The headline average on this page is the “Full-year Showroom open throughout 2025 (2 outlets)” group (2).
| Group | n | Average | Median |
|---|---|---|---|
| Full-year Showroom open throughout 2025 (2 outlets)headline above | 2 | $1.1M | $1.1M |
| Showroom open 6-11 months during 2025 (7 outlets, Jul1-Dec31 partial-period revenue) | 7 | $690K | $487K |
| Showroom open <6 months during 2025 (7 outlets, full calendar year revenue) | 7 | $523K | $646K |
| Non-Conforming location (CIQ of Orlando, Showroom open 1 day/week) | 1 | $125K | $125K |
Costs and gross profit margin, as the filing prints them
The filing's “Gross Profit Margin” is The filing does not say whether it is after royalty, ad fund, rent, debt service and depreciation. Gross sales are not profit, and this line is not take-home pay: what it leaves out still has to be paid.
The cost lines for 4 groups (FDD pp.46, 47, 49, 50)
| Line, as the filing names it | Full-year Showroom open throughout 2025 (2 outlets)n=2 |
|---|---|
| Average gross sales | $1.1M |
| Gross Profit Margin | 41.40% |
| Line, as the filing names it | Showroom open 6-11 months during 2025 (7 outlets, Jul1-Dec31 partial-period revenue)n=7 |
|---|---|
| Average gross sales | $690K |
| Gross Profit Margin | 38.70% |
| Line, as the filing names it | Showroom open <6 months during 2025 (7 outlets, full calendar year revenue)n=7 |
|---|---|
| Average gross sales | $523K |
| Gross Profit Margin | 36.70% |
| Line, as the filing names it | Non-Conforming location (CIQ of Orlando, Showroom open 1 day/week)n=1 |
|---|---|
| Average gross sales | $125K |
| Gross Profit Margin | 48.70% |
vs Home Services medians
How Cabinet Iq compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Cabinet IQ Franchising, LLC, owned by Cabinet IQ Holdings, LLC.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Cabinet IQ Franchising, LLC
- Parent company
- Cabinet IQ Holdings, LLC
- FDD Item 1, page 6 of the 2026 FDD
- CEO title
- Chief Executive Officer & Founder
- Michael Hartel
- Incorporated in
- Texas
- HQ
- 2419 S. Bell Blvd., Cedar Park, TX 78613
Overview
About
Professional kitchen remodeling services (residential and commercial) under the "Cabinet IQ" mark, including a retail showroom for cabinet products and services, cabinet evaluation, removal, and installation.
- CEO
- Michael Hartel
Is the system healthy?
+52 franchised outlets over the two years to 2025 (1 to 53).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units rose from 1 in 2023 to 53 in 2025
Axis does not start at zero.
Source and method
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 17
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $5.0M
- Average loan
- $292K
- loan volume divided by loans
- Charge-off rate
- 17 loans: too few to judge
- Limited SBA coverage: 17 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 17 loans: too few to judge
- Recent-loan charge-off
- 17 loans: too few to judge
- Lenders
- 7
- Average interest rate
- 10.0%
- Jobs reported
- 74
- Lender concentration
- 59%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Borrower mix: of the 17 loans with a recorded business age, 16 (94%) went to startups or businesses under two years old and 1 (6%) to established businesses or ownership changes.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Cabinet Iq from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 68%
- Average interest rate
- 10.0%
- Lender concentration
- 59%
- Jobs reported
- 74
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| The Huntington National Bank | ||
| 10 | $2.0M | Not on file |
| Magnifi Financial CU | ||
| 2 | $590K | Not on file |
| Fulton Bank, National Association | ||
| 1 | $350K | Not on file |
| Climate First Bank | ||
| 1 | $640K | Not on file |
| Colony Bank | ||
| 1 | $518K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| TX Texas | 6 | 0 | Too few0 resolved |
| CO Colorado | 2 | 0 | Too few0 resolved |
| GA Georgia | 2 | 0 | Too few0 resolved |
| TN Tennessee | 2 | 0 | Too few0 resolved |
| AZ Arizona | 1 | 0 | Too few0 resolved |
| FL Florida | 1 | 0 | Too few0 resolved |
| NJ New Jersey | 1 | 0 | Too few0 resolved |
| OR Oregon | 1 | 0 | Too few0 resolved |
| PA Pennsylvania | 1 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (3)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 75/100 (category median 56); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics NeutralAvg gross sales $1.1M on a $396K investment midpoint, 2.9x (gross sales, not profit)
- Unit growth Neutral+52 franchised outlets over the two years to 2025 (1 to 53); growth is not graded below a 10-outlet starting base; turnover 7.4%
- Scale Neutral53 franchised units, +1 company-owned (54 in all); franchising since 2022
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials; no franchisor financial figures on file
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 2 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory size | “Non-exclusive but protected Territory of up to 100,000 owner-occupied households (Base Territory); franchisor will not sell another franchise within the protected Territory while franchisee remains compliant, but franchisee may still face competition from company-owned outlets, other channels, or competitive brands the franchisor controls.” |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 100 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | Austin, Texas (AAA office nearest franchisor's principal place of business) |
| Governing law | Texas |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 105 hrs
- On-the-job training
- 40 hrs
- Training location
- Virtual Classroom and Austin, TX (franchisor headquarters)
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Site selection
- franchisee (franchisor reviews/approves)
- Franchisor financing
- Not offered
- Item 10
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Cabinet Iq franchise?
Per the 2026 FDD, the total investment to open a Cabinet Iq franchise ranges from $308K to $483K, with an initial franchise fee of $60K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Cabinet Iq franchise owners earn?
According to Item 19 of the Cabinet Iq FDD, average gross sales were $1.1M (Item 19 group “Full-year Showroom open throughout 2025 (2 outlets)”, 2 outlets; gross sales, not profit). The median is $1.1M. Includes company-owned outlets; Based on only 2 outlets. What an owner keeps depends on location, operating costs and management.
Who owns Cabinet Iq?
Cabinet Iq is franchised by Cabinet IQ Franchising, LLC. Its parent company is Cabinet IQ Holdings, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Cabinet Iq FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Cabinet Iq FDD and qualifies whose outlets they describe.
What is Cabinet Iq's franchise failure rate?
There is no published franchise failure rate, and Cabinet Iq has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Cabinet Iq franchise locations are there?
Per the 2026 FDD, Cabinet Iq has 53 franchised units and 1 company-owned (54 in all). In the latest year, the number of franchised outlets grew by 32 (36 opened, 4 closed).
Is Cabinet Iq a good franchise to buy?
FranchiseVerdict gives Cabinet Iq an A Verdict grade (Strongest tier) with a verdict score of 75 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by legal record (no litigation naming the franchisor in Item 3) and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Home Services franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.