Rising JM Family, Home Franchise Concepts FTC Franchise Complaints Exceed 50

JM Family Enterprises’ Home Franchise Concepts (HFC) is the franchisor of Aussie Pet Mobile, Bath Tune-Up, Budget Blinds, Kitchen Tune-Up, Lightspeed Restoration, PremierGarage, The Tailored Closet, and Two Maids. until recently, it was the franchisor of Advantaclean and Concrete Craft. It’s also reportedly the subject of more than 50 recent FTC complaints by franchisees.

(UnhappyFranchisee.Com) Franchisees of JM Family Enterprises and Home Franchise Concepts (HFC) have reportedly filed 51 complaints to the Federal Trade Commission (FTC).

Khaled Sharafuddin and Kauthar Al-Mottahar (aka Kay Sharaf) are HFC Kitchen Tune-Up & Bath Tune-Up franchisees for Bloomington, MN.

Kay Sharaf publishes Inside the Franchise Experience on YouTube.

On November 25, 2025, Sharafuddin and Sharaf filed a detailed, comprehensive 83-page complaint.

The executive summary, published below, reportedly reflects many of the other franchisees’ complaints.

Disclaimer:  The statements and opinions in this complaint are those of the original authors and published here for discussion, validation, correction and/or rebuttal by HFC franchisees and JM Family Enterprises and Home Franchise Concepts (HFC) representatives.  The views expressed are neither endorsed nor refuted by this publication, as we have no first-hand knowledge. 

All views are welcome.

Executive Summary

The evidence demonstrates a systemic pattern of material misrepresentations, omissions, and deceptive practices across multiple sections of the franchisor’s Franchise Disclosure Documents. The franchisor denied receiving supplier rebates while its own financial statements reported millions collected; repeatedly omitted litigation required to be disclosed; provided Item 3 disclosures with incorrect parties, courts, states, and case numbers; obstructed due diligence by listing phone numbers it controlled instead of real former franchisee contacts; and prematurely marketed Bath Tune-Up using statements that misrepresented the system’s readiness, support, and performance. Bath Tune-Up’s FDDs also falsely reported early franchisees, listing and then removing a multi-territory operator without disclosing his closure until a year later, creating a misleading picture of system maturity.

Additionally, the National Advertising Fund was overspent beyond franchisee contributions, exceeded its contractual 15% administrative-fee cap, and lacked basic vendor-level transparency, raising concerns of misuse of required advertising funds. Viewed together, these issues show a consistent pattern of inaccurate disclosures, withheld material information, and sales practices that violate the FTC Franchise Rule and the Minnesota Franchise Act, and materially impair a prospective franchisee’s ability to make an informed investment decision.

We are submitting this statement to document our experience as franchisees of Kitchen Tune-Up (KTU) and Bath Tune-Up (BTU), brands owned by Home Franchise Concepts (HFC). We invested our retirement savings, home equity, income, and four years of full-time labor based on specific representations HFC made about the maturity of the system, the training and support they would provide, and the “35-year family legacy” they emphasized during the sales process. The systems we entered did not match these promises. Over time, we discovered significant misrepresentations, omissions, and patterns across the franchise network that raise serious concerns under the FTC Franchise Rule.

Background / Our Story

We are submitting this statement to document our experience as franchisees of Kitchen Tune-Up (KTU) and Bath Tune-Up (BTU), brands owned by Home Franchise Concepts (HFC). We invested our retirement savings, home equity, income, and four years of full-time labor based on specific representations HFC made about the maturity of the system, the training and support they would provide, and the “35-year family legacy” they emphasized during the sales process. The systems we entered did not match these promises. Over time, we discovered significant misrepresentations, omissions, and patterns across the franchise network that raise serious concerns under the FTC Franchise Rule.

1. How We Entered the System and What HFC Promised Us

We signed the Kitchen Tune-Up franchise agreement in September 2021 and Bath Tune-Up in October 2021. The franchisor’s development team repeatedly stressed that KTU was a “family-founded business” with a 35-year history. A major portion of the discovery day materials focused on Heidi and her father, their family values, and how they “take care of franchisees like family.” They presented both brands as mature systems backed by decades of experience, especially during economic downturns.

We were also told that if we signed for both KTU and BTU at the same time, we qualified for a limited-time discount. This created urgency and made us believe we were entering a stable, proven organization with experienced leadership. Throughout the sales process, they emphasized strong training, ongoing support, and that we would never be alone in the business.

We were told that the model could be operated from home by one person, using subcontractors for the labor. We were told no prior experience was needed because the franchisor’s training would cover everything.

These representations were material to our decision to invest. We relied on them fully.

2. What We Actually Received in Training

We attended Kitchen Tune-Up training in November 2021. Immediately, we realized the actual training did not match what was promised.

Only the “tune-up” portion of the business was taught adequately. The major revenue-generating services—cabinet painting, cabinet refacing, cabinet installation, and kitchen design—were barely taught or taught incorrectly.

For example:

– Cabinet painting: Instead of training us to paint cabinets, we were told to “go to an auto body shop and have them paint the doors.”

– Cabinet refacing: They demonstrated a single veneer strip, not a full refacing job.

– Kitchen design: No design software was provided, and no real training was given. We were told to outsource designs and pay per design.

These were fundamental parts of the business. Without training in these areas, it was impossible to operate as promised.

We also quickly learned that operating from home was impossible. Shipments arrived in 18-wheeler trucks—too large for residential neighborhoods and often requiring lift gates. One of our first deliveries came in a 12-foot-long, 12-foot-high box that could not physically fit through a standard garage door. This contradicted the franchisor’s claim that the business could be run from home with no warehouse.

3. Bath Tune-Up Was Even Less Developed

We attended Bath Tune-Up training around May–June 2022. This system was represented as an extension of the franchisor’s “35 years of experience.” In reality, BTU was not operationally ready.

We had no physical samples for the first six months, making it impossible to show customers products.

Only one person in the home office had bath-remodel experience; he was terminated within months.

The person who replaced him had no remodeling knowledge but was presented as the “expert.”

Answers to our questions were often incorrect, unclear, or nonsensical.

We realized we were being trained in systems that did not exist in practice.

4. Our Good-Faith Efforts to Operate Properly

Despite the lack of training and support, we did everything possible to build the business professionally. We rented a warehouse, opened a showroom, hired employees, and invested in proper equipment and business infrastructure—steps the franchisor never adequately prepared us for.

A key example of the franchisor’s lack of understanding occurred when the manager of regional managers called us and tried to convince us not to rent a warehouse. This demonstrated that the franchisor lacked basic operational knowledge of the very business they were selling. Right after this, we noticed that we were right because our first shipment came in a 12-by-12 size that would not fit in any residential garage. The warehouse we had included a dock, so we were fortunate we did not follow their advice. All other owners agree with this 100%.

Our work ethic and service quality were strong. We earned:

– 72 five-star Google reviews for Kitchen Tune-Up

– 19 five-star reviews for Bath Tune-Up

Customers consistently praised our service. We also achieved over $1 million in combined annual sales in two consecutive years. Yet, even with this revenue level, we still ended each year with negative income because the model itself was not viable under the franchisor’s structure, vendor pricing, and training limitations.

5. Financial Harm

We invested everything we had:

– All retirement savings accumulated over more than 20 years

– All personal savings

– Monthly contributions from my husband’s salary

– HELOC funds

– American Express and other loans

I worked full-time (60–70 hours per week for four years) and never paid myself a single dollar. My husband only drew the minimum salary required under rollover rules. Our direct losses exceed $600,000, and including lost income and lost retirement growth, our total harm exceeds $1.3 million.

We also purchased Tailored Closet and Premier Garage at the franchisor’s encouragement. That business also lost money before we received a mutual release.

6. Attempting to Exit and Contract Red Flags

When we reached rock bottom, we contacted Heidi and offered $5,000 to exit. She told us we owed approximately $120,000 based on our territories and remaining years.

We tried to reduce costs. We attempted to cancel Perceptionist, a call-answering service we paid for directly. The vendor told us HFC had to approve the cancellation, which made no sense because it was our account. Larry from HFC initially denied the request. When we asked him to show us where the contract required this service, he did not provide any clause. Instead, once questioned, he immediately approved the cancellation. This raised major concerns.

7. Discovery of Systemic Issues

We began reviewing documents closely and discovered:

– Rebate discrepancies

– Phone number issues

– Missing litigation disclosures

When we spoke with other franchisees, we learned that our experience was common. Most owners reported:

– Inadequate training

– Insufficient technical support

– Learning everything by trial and error

– Getting more help from fellow owners than from HFC

We also learned about a pattern of turnover. Many franchisees paid to exit through mutual releases, abandoned their businesses and were sued, or filed bankruptcy to escape.

8. Contact With the Minnesota Attorney General’s Office

In 2025, after identifying potential violations, we filed a complaint with the Minnesota Attorney General’s Office. The Deputy Attorney General reviewed our initial claims over several months.

Later, when we submitted information about the rebate discrepancy, the Deputy AG contacted us the next day to discuss it. He told us he contacted HFC with questions about the rebate issue. HFC attempted to explain the discrepancy as a “discount.” When asked about the $2 million rebate gap, they responded that they “needed to look into it.”

After discovering additional issues, we determined an FTC complaint was necessary.

Conclusion

We purchased these franchises based on representations about decades of experience, strong training, reliable support, and a turnkey business model. These claims were material, and we relied on them in making life-changing financial decisions. The systems we entered were not what was promised. We invested everything we had, including our retirement, only to learn later that our experience matched a wider pattern among other franchisees.

We respectfully request that the FTC provide immediate temporary relief by rescinding our franchise agreements and investigate these practices under the Franchise Rule and take appropriate enforcement action regarding Home Franchise Concepts’ franchise development and system operations.

Respectfully submitted,

Khaled Sharafuddin
Kauthar Al-Mottahar A.K.A. Kay Sharaf
Kitchen Tune-Up / Bath Tune-Up franchisees
Bloomington, MN
11/25/2025

Also read:

JM Family, Home Franchise Concepts (HFC) Franchisees Find Their Voice

Home Franchise Concepts’ Concrete Craft Has Disappeared. What Happened?  

Public Audit: Home Franchise Concepts (HFC) Veterans Franchise Program   February 23, 2024

JM Family, Home Franchise Concepts (HFC) Drives Army Ranger PK Kelley & Father into Bankruptcy February 23, 2024

Are Home Franchise Concepts (HFC) Franchises Veteran-Friendly? Turnover Rates Compared   February 19, 2024

Are you familiar with the JM Family Enterprises or Home Franchise Concepts (HFC) franchise opportunities?

Kitchen Tune-up?  Bath Tune-Up?

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