Heritage School of Interior Design Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Heritage School of Interior Design is an education franchise operating private career schools that teach interior design. Franchisees run the schools, managing instructors, curriculum, and enrollment.
FranchiseVerdict summary · 2026
A Heritage School of Interior Design franchise requires a total initial investment of $116K – $585K, including a $5K franchise fee and an ongoing 10.0% royalty[2]. Per the 2025 FDD, average unit revenue was $809K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $116K – $585K
- 37th pct Education
- Avg gross sales
- $809K
- Company-owned onlyn=125th pct Education
- Royalty
- 10.0%
- 55th pct Education
- Units
- 6
- 22nd pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $116K – $585K including a $5K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage unit revenue of $809K/year (company-owned outlets only - not franchisee performance).
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- FLAGRevenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- HSID FRANCHISING, LLC
- Parent company
- HERITAGE ENTERPRISES INC.
- CEO title
- Owner and Founder / CEO of affiliate
- Stephanie Plymale
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- OR
- HQ
- 18171 Bryant Rd., Lake Oswego, Oregon 97034
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
Overview
About
- CEO
- Stephanie Plymale
- Headquarters
- OR
- Founded
- 2024
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 47% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $5K | $5K | |
| Rent and Security Deposit – First 9 Months | $36K | $135K | |
| Leasehold Improvements | $0 | $100K | |
| Computer Hardware and Software | $1K | $3K | |
| Fixtures, Furnishings, and Equipment | $25K | $50K | |
| Supplies | $500 | $3K | |
| Signage | $300 | $700 | |
| Payroll – First 9 Months | $45K | $225K | |
| Out-of-Pocket Expenses During Training | $0 | $1K | |
| Initial Advertising | $0 | $5K | |
| Licenses and Permits | $2K | $5K | |
| Professional Fees | $1K | $3K | |
| Insurance | $1K | $2K | |
| Additional Funds – 9 Months | $0 | $50K | |
| Total initial investment | $117K | $587K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $116K – $585K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $50K
- Top 40% of category vs category
- Franchise fee
- $5K – $5K
- Top 40% of category vs category
- Royalty
- 10.0%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Training fee | $100 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $500 – $3K |
What do units actually make?
Average unit sales land near the education norm.
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$105K
13.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.6 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Heritage School of Interior Design unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
28%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Heritage School of Interior Design units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$971K
on $4.9M purchase
Total debt
$3.9M
SBA $2.4M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
- Avg gross sales
- $809K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net income and gross revenue
- Sample size
- 1
- vs category median 17 · small
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $809K/year in gross sales. Revenue-to-investment ratio: 2.3x. Company-owned outlets only - not franchisee performance.
Fee burden
10.0% royalty + 0.0% ad fund — higher than the category average of 7.5%.
Operator retention
Net unit growth of +200.0% over 3 years (2 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How Heritage School of Interior Design Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Net growth (3-yr)
- +200.0%
- Net unit change over 3 years
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 1
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
No litigation is required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 100 mi |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 100 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Clackamas County, Oregon (mediation required first) |
| Jury trial waiver | Yes |
| Governing law | OR |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 7 hrs
- Training location
- Franchisor headquarters (Portland, Oregon) or virtually
- Ongoing training
- Required
- Field support
- 7 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Heritage School of Interior Design · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Heritage School of Interior Design franchise?
The total investment to open a Heritage School of Interior Design franchise ranges from $116K – $585K, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Heritage School of Interior Design franchise owners earn?
According to Item 19 of the Heritage School of Interior Design FDD, the average gross sales per unit is $809K. Important context: Company-owned outlets only - not franchisee performance; Based on a single reporting unit - not a system average. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Heritage School of Interior Design FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Heritage School of Interior Design FDD and qualifies whose outlets they describe.
What is Heritage School of Interior Design's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Heritage School of Interior Design (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Heritage School of Interior Design franchise locations are there?
As of their most recent FDD filing, Heritage School of Interior Design has 6 total units in the United States, including 3 franchised units and 3 company-owned units. 2 new units were opened in the latest reporting year.
Is Heritage School of Interior Design a good franchise to buy?
FranchiseVerdict rates Heritage School of Interior Design as a B-grade franchise with a verdict score of 55 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.