Franchise Evaluator™: The Shutter House

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

In the thriving world of shutter solutions, The Shutter House distinguishes itself with a unique focus on exterior shutters. The global shutter industry is thriving, projected to reach around $80 billion by 2027 with a 4% CAGR from 2022 to 2027. This market growth stems from the expansion of the construction industry, increased remodeling activities, and the replacement of old shutters in existing structures.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

Current trends in the shutter industry emphasize products that combine aesthetic appeal with advanced functionality. To meet this demand, The Shutter House offers various shutters in materials like Fiberglass, PVC, Composite, Vinyl, and various woods. The surge in remodeling and replacement projects, especially in the construction sector, highlights a preference for shutters that boost aesthetic value and offer durability, versatility, and compatibility with modern architectural designs.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Skilled craftsmen make all of the brand’s shutters from carefully curated manufacturers and are available in a variety of sizes and 40 standard colors that can be matched to any color to distinguish the exterior of a client’s home or business. The Shutter House’s crafted interior wood blinds, interior plantation shutters, and window shades also increase the beauty and value of homes and businesses.

Clients have a variety of shutter hinges, pintles, locks, bolts, and holdbacks to choose from. Hardware is offered in multiple materials, including forged steel, wrought steel, aluminum, plain steel, and stainless steel. The Shutter House makes available the skills of an in-house blacksmith who can customize any creation clients can dream up.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

The Shutter House is the only turn-key, full-service retail franchise specializing in exterior window treatments. Most competitors sell interior or custom exterior shutters, but not both, as The Shutter House does. To stay competitive in terms of prices, The Shutter House provides franchisees with guidelines on conducting in-home consultations, building quotes for clients, and professional installation processes. Franchisees may also have opportunities to offer value-added pricing packages or discounts to attract clients.

We categorize the competitive climate as low-mid competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

Before opening a business, you have to obtain the necessary permits and comply with laws and regulations regarding building codes and Occupational Safety and Health Administration (OSHA) guidelines for handling tools. Understanding these requirements and meeting with lawyers and consultants prevents costly mistakes or legal challenges down the line.

We categorize the regulatory climate as low regulation.

How experienced is the franchisor at being a franchisor?

Edward Terry and Eric Grimes, co-founders and leaders of The Shutter House franchise team, established the business with the goal of becoming a leading player in the shutter market, providing both interior and custom exterior shutters. The brand’s training staff has over 75+ years of experience in exterior and interior window treatments, sales, and installation and provides ongoing support and guidance to franchise owners.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

Co-founder and CEO Edward Terry began his career as a software developer and IT Manager for a financial institution. With a degree in Business Administration and an MBA in accounting, he decided to start his own software company. His first client convinced him to work full-time for a manufacturer that fabricated both interior and exterior window shutters. After five years, Terry founded a global distribution company that supplied interior and exterior window treatments to architects, builders, and building supply yards.

Co-founder Eric Grimes is an eight-year veteran of the cabinet and furniture-making trade. When he came upon an opportunity to be a construction superintendent in the high-rise residential construction industry in South Florida, Grimes was catapulted toward business ownership of a remodeling and residential construction company, where he would remain for the next decade. In 2017, he began working with a global distribution company, where he learned the intricacy of the window treatment industry. He would establish a prototype in 2020 that became a model for the current day, The Shutter House franchise.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

The Shutter House provides an extensive support system to empower franchisees. This support includes Brand Marketing Fund management, operational guidance, and approved supplier and equipment lists. Additional support encompasses opening assistance via on-site visits or video calls, optional software programs, franchise inspections, and advertising services. Franchises have 10 days of extensive product, installation, and sales training.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

The financial health of The Shutter House franchise, as reflected in its 2023 performance, is robust. The Daphne, Ala.-based franchise location’s product gross revenue totaled $575,823. The franchise’s installation gross revenue reached $64,945, bringing total gross revenue to $640,768. The second franchised outlet began operating in Florida in late 2023, so results from that location are not included in Item 19 due to its limited operating history.

We categorize the Financial Health as Sound.