Real Deals on Home Décor Franchise Cost, Revenue & Review 2026
- Investment
- $143K – $268K
- Disclosed sales
- $498K
- gross sales, not profit
- SBA charge-off
- 7.1%
- on 21 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Real Deals is a home decor retail franchise selling on-trend furnishings, decor, and gifts at value prices. Franchisees run the showrooms, managing inventory, merchandising, sales events, and local marketing.
FranchiseVerdict summary · 2026
A Real Deals on Home Décor franchise requires a total initial investment of $143K – $268K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $498K[2]. SBA 7(a) loans show a 7.1% charge-off rate across 21 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $143K – $268K
- 55th pct Home Services
- Avg gross sales
- $498K
- Partial period10th pct Home Services
- Royalty
- 5.0%
- 8th pct Home Services
- Units
- 46
- 43rd pct Home Services
- SBA charge-off
- 7.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · 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 $143K – $268K including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $498K/year.
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 7.1% across 21 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHFlat: no net change in franchised outlets in the latest year (2 opened, 2 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Real Deals, Inc.
- Predecessor
- Real Deals on Home Décor, Inc.
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer and Director
- Nate Kelsey
- Incorporated in
- Idaho
- HQ
- 1411 E. 4400 N., Buhl, Idaho 83316
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $1.2M
- vs $1.3M prior year
Overview
About
- CEO
- Nate Kelsey
- Headquarters
- ID
- Founded
- 2006
- FDD year
- 2025
- States available
- 20
Can you afford it, and what does the money buy?
Entry cost runs 22% above the typical home services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial franchise fee | $30K | $30K | |
| Travel and living expenses while training | $3K | $6K | |
| Real Deals on Home Décor® branded products | $500 | $2K | |
| Real estate improvements | $5K | $50K | |
| Rent | $3K | $17K | |
| Equipment, furniture, fixtures, décor, and supplies | $5K | $13K | |
| Computer hardware, and software | $2K | $4K | |
| Signs | $5K | $8K | |
| Pre-Opening advertising | $5K | $5K | |
| Misc. opening costs | $500 | $3K | |
| Opening inventory | $56K | $86K | |
| Advertising – 3 months | $9K | $15K | |
| Additional funds - 3 months | $20K | $30K | |
| Total initial investment | $143K | $268K |
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
- $143K – $268K
- Middle of category vs category
- Liquid capital req'd
- $20K – $30K
- Middle of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $60 |
| Transfer fee | $2K |
| Renewal fee | $2K |
| Inventory (initial) | $56K – $86K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 15% below the home services norm.
Covers a partial period, not a full year
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Real Deals on Home Décor until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$231K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Real Deals on Home Décor unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Covers a partial period, not a full year
- Avg gross sales
- $498K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- partial-period revenue
- Sample size
- 45 outlets
- vs category median 32
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 319 Home Services 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 $498K/year in gross sales. Revenue-to-investment ratio: 2.4x.
Fee burden
Total ongoing fee load of 6.5% — below the Home Services median of 8.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+4.5% 3-year CAGR) with 46 units.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Home Services medians
How Real Deals on Home Décor Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 46
- Opened
- 2
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +4.5%
- Net unit change over 3 years
- 3-yr CAGR
- +4.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Projected new
- 3
- Franchisor's next-year forecast
- Transfer rate
- 4.3%
- Owners selling to other franchisees
- Ceased ops
- 4.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
47 current owners across 19 states.
- OR 7
- IA 6
- ID 6
- UT 4
- MT 3
- ND 3
- SD 3
- CO 2
- MN 2
- TN 2
- AZ 1
- IL 1
- +7 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 21
- Loan volume
- $4.8M
- Median loan
- $230K
- average
- Charge-off rate
- 7.1%
- on 21 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 1
Vintage analysis
Real Deals on Home Décor charge-off rate by loan vintage
Top lenders financing Real Deals on Home Décor franchisees
Showing 3 of 17 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Real Deals on Home Décor from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Zions Bank, A Division of | 3 | $1.7M | 0.0% |
| 2 | Bankers Trust Company | 2 | $160K | 0.0% |
| 3 | D. L. Evans Bank | 2 | $175K | 0.0% |
| 4 | OakStar Bank | 1 | $150K | 100.0% |
| 5 | Coastal Community Bank | 1 | $109K | 0.0% |
| 6 | United Midwest Savings Bank National Association | 1 | $125K | N/A |
| 7 | Stockman Bank of Montana | 1 | $90K | 0.0% |
| 8 | Manufacturers Bank & Trust Company | 1 | $145K | 0.0% |
| 9 | The Bank of Commerce | 1 | $90K | 0.0% |
| 10 | Glacier Bank | 1 | $50K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| IDIdaho | 5 | 0 | 0.0% |
| IAIowa | 4 | 0 | 0.0% |
| MNMinnesota | 3 | 0 | 0.0% |
| MTMontana | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | 0.0% |
| COColorado | 1 | 0 | 0.0% |
| MIMichigan | 1 | 0 | -- |
| MOMissouri | 1 | 1 | 100.0% |
| OKOklahoma | 1 | 0 | -- |
| TNTennessee | 1 | 0 | -- |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 7.1% — 56% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean profile: no litigation, no bankruptcy, no going-concern, positive equity $865K on $1.24M revenue with $565K net income, audited financials and Item 19 disclosed. 46 franchised units with healthy 4.5% net growth and low 4.35% turnover.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation 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)
Franchisor operating revenues: franchise fees, royalty income, technology and other fees, product sales.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MINORNo litigation, no bankruptcy, no going-concern
- 02MINORPositive net worth $865,281; net income $565,375
- 03MEDAudited + Item 19 disclosed; low turnover 4.35%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% 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 | 10 years |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Salt Lake City, Utah |
| Jury trial waiver | Yes |
| Governing law | Idaho |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 26 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Required POS System (with Shopify/SOS software)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Required POS System (with Shopify/SOS software)
Item 20 · call current owners
Franchisee Contacts
48 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Real Deals on Home Décor franchise?
The total investment to open a Real Deals on Home Décor franchise ranges from $143K – $268K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Real Deals on Home Décor franchise owners earn?
According to Item 19 of the Real Deals on Home Décor FDD, the average gross sales per unit is $498K. Important context: Covers a partial period, not a full year. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Real Deals on Home Décor?
Real Deals on Home Décor is franchised by Real Deals, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Real Deals on Home Décor 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 Real Deals on Home Décor FDD and qualifies whose outlets they describe.
What is Real Deals on Home Décor's franchise failure rate?
Based on SBA 7(a) loan data, Real Deals on Home Décor has a charge-off rate of 7.1% across 21 loans, meaning 7.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Real Deals on Home Décor franchise locations are there?
As of their most recent FDD filing, Real Deals on Home Décor has 46 total units in the United States, including 46 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Real Deals on Home Décor a good franchise to buy?
FranchiseVerdict rates Real Deals on Home Décor as a A-grade franchise with a verdict score of 79 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.