Budget Blinds Franchise Cost, Profit & Failure Rate 2024

With over 30 years of service, Budget Blinds stands as a good option for entrepreneurs looking to own a franchise. Budget Blinds works at one of the essential parts of the real estate market, the home improvement market. Are you also thinking that Budget Blinds is a good option and that you want to own a franchise with them?

Budget Blinds Franchise

That might be a good idea, but is it worth it when you involve the costs, effort, and return on investment? In this article, we will cover the franchise details of Budget Blinds and show you what you can expect.


About Budget Blinds And Budget Blinds History

Budget Blinds is a home improvement franchise company with headquarters in California, United States. They are owned by Home Franchise Concepts. Budget Blinds is one of the eight home service franchises they own.

The company is one of the top home improvement chains with window covering, automated shades, drapes, and home décor offerings. They tend to both residential and commercial clients.

The company was founded in 1992 and quickly began to franchise in 1994. They had a steady growth, reaching over 1,300 locations globally. Most of their locations are in the United States, and the company is still franchising to those interested.

Now, the company has over three decades of franchising experience with a fantastic training and support system to ensure franchisees can succeed.


Franchise Model Table

Cost Or FeesAmount
Initial Investment      $140,500-$211,750
FranchiseYES
Franchising Since1994
Franchise-Fee$19,950
Royalty-Fee$500-$2,500
Liquidity$50,583
Estimated Outlets1380

How Much Does It Cost To Open A Budget Blinds Franchise?

The average cost to open one Budget Blinds franchise store is between $140,500 and $211,750. This includes the $19,950 franchise fee and all other expected startup costs. These startup costs are generally payroll, equipment, construction if needed, and other similar expenses.

This number is the average of what the current franchisees have spent and what the company expects, considering the current market situation. Depending on the size and location of the store, the exact costs might be different than these average numbers.


Franchise Requirements Of Budget Blinds franchise

You do not need to have experience in the industry as a manager or as a franchise owner. You need to be business savvy and have an entrepreneurial spirit, as their training program teaches you everything. You only need to have a working capital of $50,583, which is liquidity.


Budget Blinds: Profit & Revenue

The company had a total revenue of $93.4 million in the fiscal year 2022. This includes all the income, including franchise fees, royalties, sales, and others. When all the costs were removed, the company’s net profit was $45.1 million for the same year.

On average, the franchise owner of Budget Blinds earns $712,000 in revenue annually.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%712000.00
Rent10.63%(75650.00)
Insurance5.31%(37825.00)
Salaries21.25%(151300.00)
Franchise Royalty Fees5.31%(37825.00)
Utilities2.13%(15130.00)
Cost of Goods Sold (COGS)26.56%(189125.00)
Labor (Variable)13.81%(98345.00)
Total (Expenses)85.00%(605200.00)
Net Profit15.00%106800.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Budget Blinds

With an investment of $211,750 and an estimated 15% profit margin, the yearly profit would be $106,800.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $211,750/ $106,800 = 1.98 years

Based on these figures, it will take approximately 2-3 years to pay back the initial investment for Budget Blinds. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Budget Blinds Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202010971144+47
202111441238+94
202212381298+60

For the Franchised outlets:

  • In 2020, the growth rate was (47)/1097×100≈4.28%
  • In 2021, the growth rate was (94)/1144×100≈8.21%
  • In 2022, the growth rate was (60)/1238×100≈4.84%

According to the above-mentioned data, we can see that the franchised outlets for Budget Blinds grew from 2020 to 2022, showing a growth rate between 4.28% and 4.84%.

Overall, looking at the growth rate of Budget Blinds franchise, it is safe to invest in Budget Blind franchise.


Overall Sales

An average Budget Blinds franchise makes about $905,302 annually in overall sales. This information comes from the company itself, and this is the average for one store. Budget Blinds franchise stores have seen a 28% year-over-year growth in franchise overall sales from the previous year.


Training and Support Of Budget Blinds

Budget Blinds offers a 2-week initial training program that teaches you about time and financial management, consultative sales processes, and marketing processes. There is both classroom and on-the-job training during these 2 weeks, and it happens in their training center in Texas.

Apart from the previously mentioned topics, they also teach about Budget Blinds’ products and give you installation training on the products.

In addition to their training programs, Budget Blinds also offers ongoing support and additional training opportunities as needed. They help develop business goals for the first year and manage your finances. You are also given a Regional Operations Manager and have weekly calls with them for assistance.


Terms of Agreement And Renewal

The initial term of the agreement is for ten years. After the first ten years, a renewal is possible. This renewal is for two additional consecutive five-year terms. You need to meet the requirements for this renewal, and the franchisor must approve your request.


Budget BlindsFranchise: Obligations and Restrictions

The franchisor prefers to have franchisees who can actively work in the daily operations of the franchised store. The franchisee should ideally be present in the store full-time and oversee everything.

However, the franchisor allows the franchisee to employ a manager to be at the store full-time. It is an obligation to have one responsible person to oversee all the operations.

The franchisee is restricted to selling only the products and services that the franchisor has authorized to sell. The franchisee is not obligated to sell all the products and services approved by the franchisor, but it is suggested.


Financial Assistance

Budget Blinds provides a limited amount of direct financial assistance to qualified franchisees. At the request of the franchisee and if they meet Budget Blind’s standards, Budget Blinds covers up to $56,000 of the franchise and territory fee. They do not cover anything else above $56,000.

The decor and home improvement service franchise market offers several opportunities for entrepreneurs, such as franchises from Card My Yard, Glass Doctor, Sign Gypsies, Handyman Franchise, and Floor Coverings International Franchise.


Budget Blinds Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Window Genie$62,500-$75,5607%$140,700-$237,060
Gotcha Covered$69,900$350-$2,000/mo$100,050-$122,055
Budget Blinds$19,950$500-$2,500/mo$140,500-$211,750

Conclusion

Budget Blinds is quite a famous company run by a highly experienced franchisor, Home Franchise Concepts, which owns seven other brands like Budget Blinds. Budget Blinds has over 1,300 outlets across the world, 1,200 of which are in the United States.

The entry costs are fairly low and have a good average potential revenue per franchised store, around $905,302. That’s why if Budget Blinds is on your radar to buy as a franchise, then you should highly consider it.


FAQs

Is Budget Blinds a good franchise to own?

Budget Blinds seems like a good franchise to own. The company has over 30 years of experience in the industry and in the franchise business. They have extensive support and training to get you up to date and help you succeed.

Who owns Budget Blinds?

Budget Blinds is a private company owned by the founders and board members of the company. The parent company of Budget Blinds is Home Franchise Concepts.

Who started Budget Blinds?

Brent Hallock, Chad and Tony Forbes, Todd Jackson, and David Lewis are the original five founders of Budget Blinds. They came together and founded the company in 1992.

Where is Budget Blinds headquartered?

The headquarters of Budget Blinds is located in Irvine, California.

How many locations does Budget Blinds have?

Budget Blinds operates over 1,300 franchise territories serving more than 10,000 cities across the U.S. and Canada.

Sources

https://www.franchisedirect.com/directory/budgetblinds/ufoc/1747/
https://franchise.budgetblinds.com/blog/window-covering-business-for-sale-franchise-costs–required-skills/
https://franchise.budgetblinds.com/investment/
https://franchise.budgetblinds.com/why-budget-blinds/franchisee-training/
https://franchise.budgetblinds.com/franchise-faqs/
https://www.entrepreneur.com/franchises/directory/budget-blinds/282159
https://www.franchimp.com/?page=pdf&f=101817_2023.pdf
https://www.entrepreneur.com/franchises/directory/gotcha-covered/335470#overview
https://www.entrepreneur.com/franchises/directory/window-genie/282946

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