FranchiseVerdict
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B59/100FDD 2025

Real Deals on Home Décor — Litigation & Risk

Home Services - Other · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
21
Government-backed loans issued
Default rate
7.1%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$4.8M
Avg loan size
$230K
Participating lenders
17

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Idaho
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  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 FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.