Bottom line
- Total investment $49K – $158K including a $20K franchise fee.
- Average unit revenue of $561K/year (median $416K).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 Showhomes unit return on the cash you put in?
Unlevered ROIC · per unit
88%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Showhomes units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.4M purchase
Total debt
$6.7M
SBA $4.2M + senior + seller note
Overview
About
Showhomes franchisees provide home staging, redesign, and refresh services to real estate agents, home sellers, and property managers. Day-to-day work involves consultations, space design, product sourcing, installation, and client project management to enhance property appeal for sales or leasing.
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 · 15 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
Showhomes presents meaningful risk due to declining unit count (-13.6% YoY), undisclosed profitability metrics, unprotected territory, and complex royalty tiers in a contracting 19-unit system.
Score breakdown · what drove the 51 / 100 rating
- 01MEDUnit count declined 13.6% year-over-year (19 units remaining) — indicates system contraction and potential market viability issues
- 02MEDNet income not disclosed in Item 19 — unable to assess actual profitability; only average revenue of $560,899 provided without expense context
- 03MINORUnprotected territory — franchisees face direct competition from other Showhomes franchisees and potential encroachment
- 04MINORWide royalty structure (7%-10% of service sales plus 3%-7% of update sales) creates unpredictable cost burden depending on sales mix
- 05MINORHigh initial investment range ($48,895–$158,095) relative to system size and declining unit count raises ROI concerns
- 06MINOR10-year term is lengthy commitment for a shrinking franchise system with no growth trajectory
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Showhomes · FDD (2025) PDF