The Decor Group / Christmas Decor
Bottom line
- Total investment $22K – $131K including a $16K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $419K/year (median $226K).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 13 loans (below the industry average).
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 / Christmas Decor unit return on the cash you put in?
Unlevered ROIC · per unit
68%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Decor Group / Christmas Decor units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$502K
on $2.5M purchase
Total debt
$2.0M
SBA $1.3M + senior + seller note
Overview
About
Franchisees operate seasonal outdoor Christmas decoration and lighting installation services, managing customer acquisition, design consultation, installation crews, and holiday removal. Revenue concentrates in Q4, requiring careful cash management and off-season planning. Territory-protected model allows franchisees to be primary service provider for residential and commercial holiday decorating in defined geographic areas.
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
Declining franchisor financial health (going concern issue), active litigation over franchise breaches, and lack of income disclosure create elevated risk despite decent unit count and protected territories.
Score breakdown · what drove the 51 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial viability issues at corporate level
- 02HIGHActive litigation (2023) involving breach of franchise agreement, misappropriation of confidential information, and interference with business — suggests enforcement challenges and IP protection concerns
- 03MEDNet Income not disclosed in FDD Item 19 — inability to verify profitability claims despite $418,607 average revenue figure
- 04MINORUnit count stagnant at 240 with unknown growth trajectory — no clarity on system expansion or contraction momentum
- 05MINORHigh investment-to-revenue ratio (up to 31% of first-year revenue) with 5% royalty plus unknown marketing fund — potential cash flow compression
- 06MINORSeasonal business model (Christmas Decor) creates inherent revenue concentration risk and working capital challenges
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
93 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Decor Group / Christmas Decor · FDD (2024) PDF