Dream Doors franchise deal challenges industry standards

Dream Doors, the largest kitchen refurbishment franchise in the UK, has recently announced a fundamental change to its Management Service  Fee (MSF). In a bid to promote sales, the MSF has been spread out to reward high turnover. Troy Tappenden, Founder and Managing Director of Dream Doors, said that the latest deal will add thousands of pounds to their top performing franchisees.

Those who push boundaries every year, and allow the Dream Doors franchise to grow even more rapidly, can expect to see a rise of around 20 percent as an outcome of their latest initiative. This move is a huge incentive for their active franchisees, and should encourage new franchisees to join Dream Doors.

There are already 6 established Dream Doors franchisees –who have been with the company for many years – and who have exceeded the £400,000 margin. Tappenden confirms that the present MSF of Dream Doors is estimated as a fraction of the turnover of a franchise.

Tappenden added that for franchises who sell up to £275,000 of kitchen facelifts and kitchens, the fee is set at 9.2 percent. After this benchmark is hit, the fee automatically drops down to 6.2 percent of the overall revenue secured over £275,000. However, on sales of above £400,000, the fee plunges to just 4.2 percent, which is well below the present franchise market standard of 12 percent.