Bottom line
- Total investment $32K – $237K including a $20K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $433K/year (median $230K).
- Rated STRONG with a risk score of 48/100. SBA loan default rate of 0.0% across 31 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 The Decor Group unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Decor Group units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$865K
on $4.3M purchase
Total debt
$3.5M
SBA $2.2M + senior + seller note
Overview
About
The Decor Group franchisees operate seasonal holiday decoration installation and removal services, managing crews to design, install, and maintain exterior decorations for residential and commercial clients. Day-to-day activities include client acquisition, crew scheduling, on-site installation management, and seasonal demand fluctuation (peaking Oct–Dec).
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 · 21 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
A stagnant, mature seasonal franchise with regulatory history, undisclosed profitability, and insufficient transparency on investment determinants presents meaningful due diligence risk.
Score breakdown · what drove the 48 / 100 rating
- 01MINORStagnant unit growth (0.4% YoY) suggests mature/declining system with minimal expansion momentum
- 02MEDNet income not disclosed in Item 19 prevents accurate ROI validation and profitability assessment
- 03MED2004 Maryland Securities Commissioner Consent Order indicates past regulatory violations in franchise sales practices
- 04MINORWide investment range ($31,800–$236,900) lacks clarity on what drives 644% cost variance across locations
- 05MINOR5-year term is relatively short; renewal/exit strategy unclear given slow unit growth
- 06MINORAverage revenue of $432,619 against $20,400 franchise fee suggests modest returns with high 5% royalty burden
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
89 numbers
One-time purchase · CSV download · Validation questions included