Bottom line
- Total investment $132K – $159K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $820K/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- Emerging franchise — only 2 years of franchising with 45 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Art of Drawers unit return on the cash you put in?
Unlevered ROIC · per unit
54%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Art of Drawers units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$492K
on $2.5M purchase
Total debt
$2.0M
SBA $1.2M + senior + seller note
Overview
About
Art of Drawers franchisees operate retail or studio locations offering custom drawer organization, closet design, and home storage solutions. Day-to-day activities include client consultations, space measurements, design planning, product installation, and team management. Revenue is generated through service fees, product sales, and installation labor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Art of Drawers presents elevated risk due to franchisor going concern issues, missing profitability data, stagnant unit growth, and a cost structure that favors franchisor over franchisee financial sustainability.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status = FALSE indicates franchisor financial distress or operational instability
- 02MEDNet Income not disclosed in Item 19 — impossible to validate actual profitability claims; $819,593 avg revenue could mask significant losses
- 03MINORUnit count stagnant at 45 with unknown growth trajectory — suggests mature/declining system with no expansion momentum
- 04MINOR7% royalty on gross sales (not net) — franchisee pays regardless of profitability; combined with $60k upfront fee creates high fixed-cost burden
- 05MEDHigh initial investment ($132k-$159k) relative to disclosed average revenue leaves minimal margin for error in first 1-2 years
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Art of Drawers · FDD (2025) PDF