FranchiseVerdict
Real Deals on Home Décor logo
FV-02105·MODERATEExcellent91

Real Deals on Home Décor

Home Services - OtherFranchising since 2006Website
Investment
$143K – $268K
66th pct Other
Avg revenue
$498K
18th pct Other
Royalty
Units
46
53rd pct Other
SBA default

Bottom line

  • Total investment $143K – $268K including a $30K franchise fee.
  • Average unit revenue of $498K/year (median $337K).
  • Rated MODERATE with a risk score of 62/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Real Deals, Inc.
Incorporated in
Idaho
HQ
1411 E. 4400 N., Buhl, Idaho 83316
Auditor
Kezos & Dunlavy
Audited financials
Franchisor revenue
$1.3M
vs $1.2M prior year

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 Real Deals on Home Décor unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $498,259
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $143K–$268K
Working capital
$
FDD reports $20K–$30K

Unlevered ROIC · per unit

25%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$57K
EBITDA margin
11.5%
Total invested
$231K
Payback
48 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Real Deals on Home Décor units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$448K

on $2.2M purchase

Total debt

$1.8M

SBA $1.1M + senior + seller note

Overview

About

Real Deals on Home Décor franchisees operate retail showrooms selling discounted home furnishings, décor, and seasonal items through in-store retail and potentially online channels. Day-to-day operations include inventory management, customer sales, visual merchandising, managing a small team, and coordinating with the franchisor on product sourcing and promotional campaigns.

CEO
Nate Kelsey
Founded
2006
FDD year
2025
States available
20

Item 7 · what it costs

The Vitals

Total investment
$143K – $268K
All-in to open one unit
Liquid capital
$20K – $30K
Cash you must have on hand
Franchise fee
$30K
Royalty
Currently 5% of gross sales
Ad fund
1.5%
typical 3–5%
Total fee load
6.5%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$498K
Per unit, per year
Median gross sales
$337K
Item 19 type
Average Weekly Sales
Sample size
45 units
vs category median 21 · large
Range (low → high)
$18K$4.9M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank18th
vs Home Services - Other peers
Investment cost rank66th
Lower investment ranks lower (better)
Royalty rate rank54th
Lower royalty = lower percentile (better)
Unit count rank53th
vs Home Services - Other peers
Risk score rank62th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
46
Opened
2
Last reporting year
Closed
2
Turnover rate
4.3%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+4.5%
Compounded over last 3 years
2023
46±0
Franchised units
2024
46
Franchised units
2025
44
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 32 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 32 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

Real Deals on Home Décor presents elevated risk due to franchisor going concern issues, missing profitability disclosure, stagnant unit growth, and inability to validate claimed $498k average revenue translates to positive unit economics.

Score breakdown · what drove the 62 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — indicates the franchisor may be financially unstable or operationally distressed
  2. 02MEDNet income not disclosed in FDD Item 19 — impossible to validate actual profitability claims; $498k revenue doesn't indicate margin quality
  3. 03MEDUnit growth unknown with only 46 locations — suggests stagnation or undisclosed closures; mature brands should show clear trajectory
  4. 04MINOR5-year term is shorter than industry standard (10 years) — increases renewal risk and suggests weaker franchisee commitment
  5. 05MEDHigh investment range ($142k-$268k) relative to undisclosed profitability — ROI timeline cannot be calculated
  6. 06MINOR5% royalty on gross sales (not net) — franchisees pay royalties even in unprofitable months

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
5 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
3 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Idaho

Item 11

Training & Operations

Classroom training
18 hrs
On-the-job training
26 hrs

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

74 numbers

Locked
(208) 543-••••
Real Deals, Inc. is located at
ID
(540) 450-••••
VA
(503) 378-••••
OR

One-time purchase · CSV download · Validation questions included

FDD download

Real Deals on Home Décor · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above