Bottom line
- Total investment $66K – $104K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $7.6M/year. Estimated payback in 0.1 years.
- Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Design Pro Remodeling unit return on the cash you put in?
Unlevered ROIC · per unit
800%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Design Pro Remodeling units return on equity?
Equity IRR · 5-yr
28.1%
3.44× MOIC
Year-1 DSCR
2.90×
EBITDA ÷ debt service
Equity required
$11.0M
on $22.8M purchase
Total debt
$11.8M
SBA $5.0M + senior + seller note
Overview
About
Design Pro Remodeling franchisees operate residential remodeling businesses, managing client consultations, design selections, project scheduling, and contractor coordination. Day-to-day activities include site assessments, estimate preparation, customer relations, and job supervision for kitchen, bathroom, and whole-home renovation projects.
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 · 16 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
Micro-system with minimal transparency on financial performance and unclear path to the advertised $859K net income for new franchisees.
Score breakdown · what drove the 50 / 100 rating
- 01MINOROnly 7 units with unknown growth trajectory suggests minimal system expansion and possible stagnation
- 02MEDNo Item 19 (Financial Performance Representations) disclosed—unable to verify if $859K avg net income is realistic or achievable
- 03MINORSignificant gap between average revenue ($7.6M) and investment size ($65.9K-$104K) suggests only established/mature units hit these numbers; new franchisees unlikely to achieve comparable performance
- 04MINORTiered royalty structure rewards only top 2-3 performers; majority of franchisees likely pay 6% on sub-$2M revenue
- 05MINORHigh franchise fee ($45K) relative to system size creates pressure on break-even timeline without clear unit economics
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Design Pro Remodeling · FDD (2025) PDF