4 Reasons Why Not To Buy Budget Blinds Franchise

Table Of Contents

1 Budget Blinds Overview
2 Budget Blinds Has A History of Problems With Their Franchisees
3 Should I Buy a Budget blinds Franchise?

The window coverings industry generated $29.95 billion in sales in 2020 and is set to rise as high as $36.75 billion by 2025. North America dominates the industry, with the U.S. historically leading the way; however, China’s share has been growing steadily for years now. Blinds and shades make up the most significant chunk of the market, at 39.5%.

Connected curtains and blinds are a recent trend in home automation that’s expected to see steady growth over the coming years. The installed base of intelligent curtains and blinds revenue will be more than USD 130 million by 2027.

HFC is highly dependent on property prices in the U.S., and we’ve seen many products imported by China before the pandemic outbreak. After the restrictions on imports, there will not be as many innovations and cost-effective supplies that can make a substantial profit margin for you as a franchisee.

Hey, I’m Dan Rowe. At Fransmart, we help entrepreneurs become franchisees by providing world-class support at every step of the process. We’ve been in your shoes before — we’re experts on everything from finding a great franchise to financing to opening day. If you have any questions about buying a franchise, leave a message here, and we’ll get back to you as soon as possible!

Each industry has its advantages and disadvantages. We can’t generalize this. If you have a keen eye for finding opportunities in an emerging sector, you can do well with fast-casual restaurants too. But it depends on your capacity to spot them. Some hidden gems in the fast-food industry are promising and have already made their presence felt.

Budget Blinds Overview

Budget Blinds is one of the many brands under Home Franchise Concepts(HFC), recognized as one of the world’s largest franchisors of home services companies. With over 1,300 territories in North America, it has grown to be a billion-dollar business worldwide.

They offer the latest in innovative home technology. They aim to provide high-quality products at affordable prices, from exclusive collections of designer blinds to innovative energy-saving intelligent solutions. Moreover, maintaining the best customer service in the U.S., its services, including roller shades, vertical blinds, pillows, beds, and shutters, are available for commercial and residential buildings.

Budget Blinds Has A History of Problems With Their Franchisees

When you purchase a Budget Blinds franchise, you’ll receive the tools and training necessary to start and grow a successful business. The Budget Blinds franchise seems like a great opportunity at first glance, but there are several reasons why you should be cautious about buying the franchise. Budget Blinders has several lawsuits filed against it and has seen multiple bankruptcies from its franchisees.

We’ve analyzed several existing franchisee complaints, as well as the proposals from competitors, and talked with industry experts to pinpoint weak spots so that you can have an unbiased recommendation on buying a Budget Blind franchise.

But, not every franchise succeeds like the rest. Here are our main reasons why Budget Blinds may not be the best franchise to invest in.

#1 Buying Into A Franchise Is Expensive

The total investment required to begin the Budget Blinds franchise ranges from $125,580 to $192,900. Keep in mind any additional territories could cost $74,950 to $124,950. The Net Worth Requirement for Budget Blinds is estimated to be $125,000, and liquid working capital required is around $90,000 (although the average investment of companies operating in this industry is $140,000 and $50,000, respectively). Thus, investing such a significant amount might get difficult for you if you initially set up a franchise.

Check Whether this low Investment Franchise Opportunity Suits Your Financial Goals.

#2 The Current Trade Situation May Affect Delaying Delivery Of Certain Products

Budget Blinds has its vendors all over the US, Canada, Mexico, U.K., China, and Europe. While most of our vendors are currently working without interruption, some European factories and suppliers from China are affected by the current events. As a result, uncertainty about production delays has surfaced. So, when choosing a franchise, make sure you’re getting the products and services you need to succeed in the market. You also need to be assured that there is enough demand for the products in your location to keep your business afloat or whether it makes more sense for you to take the plunge in another region.

#3 The High Cost of Cordless Blinds Can Affect Purchases.

Cords — whether they’re on blinds, window coverings, or boxes — can be lethal to small children and pets. According to a U.S. Consumer Product Safety Commission (CPSC) report, almost 6400 children under age six were treated for injuries related to corded window blinds between 1990 and 2015. The majority of those injuries involved children under age 3.

Stringent window blinds safety regulations adopted by several countries are expected to limit the sales of corded blinds in the region, adversely affecting the industry’s revenue generation.

Although cordless products tend to be more expensive, they also have less durability — and occasionally break down earlier than their wired counterparts. This can affect consumers’ buying behavior and lead them to choose a cheaper option other than your products.

#4 The Legal Issues Surrounding Budget Blinds Are Enough To Give Any Franchise Owner Pause

Lawsuits have been a pain for Budget Blinds. From 2006 to 2012, suits from suppliers and makers have been piling up. A series of lawsuits are currently filed against the company, with $746,000 in damages against budget blinds during that period. The number of lawsuits and bankruptcies against Budget Blinds is higher than other competitors from the same industry, such as Springs Window Fashions, Hunter Douglas North America, Luxaflex, Empire Today.

The legal issues surrounding budget blinds are enough to give any franchise owner pause. However, they must check into the company’s history before they sign on. If there are lawsuits or bankruptcies against the brand, owners should be wary of how these might impact their business down the line.

Should I Buy a Budget blinds Franchise?

A Detailed Analysis — Low Return, High Investment, And Poor Support — Shows Otherwise.

While the amount of money you can earn as a franchise owner depends on various factors, there are some general benchmarks stated in FDD item 19 for every business. But are these realistic income projections? How much do franchise owners make?

The video below will show you how to calculate your return on investment (ROI) in 10 years for any franchise investment. It will also show you how much money you can expect as a business owner before taxes.

Budget Blinds Franchise Owners earn an average of $94,000 annually. As opposed to the national average of $60,000 for all Franchise Owners, their pay is 44% higher than the national salary average for all U.S. workers. But, we had serious concerns about the quality and longevity of the Budget Blinds brand. Imported products and services face import restrictions and tariffs — and we’ve seen some lawsuits and bankruptcies from brands that didn’t treat their franchisees well.

Every company is different and has its own strong and weak sides. Thus, no one franchise is better than the other — it all depends on the specifics of your business and your personal preferences. So, choose wisely!

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