FranchiseVerdict
The Designery logo
FV-02623·STRONGExcellent95

The Designery

Formerly known as A1 Kitchen & Bath

Business Services - Printing & SignsFranchising since 2021Website
Investment
$185K – $420K
53rd pct Printing & Si…
Avg revenue
$1.3M
53rd pct Printing & Si…
Royalty
Units
73
60th pct Printing & Si…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $185K – $420K including a $55K franchise fee.
  • Average unit revenue of $1.3M/year. Estimated payback in 1.8 years.
  • Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 2 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

Legal entity
A1 Kitchen & Bath Franchising, LLC
Parent company
HFB Franchisor Holdings, LLC
Incorporated in
North Carolina
HQ
107 Parr Drive, Huntersville, North Carolina 28078
Auditor
Kezos & Dunlavy
Audited financials
Franchisor revenue
$4.2M
vs $1.5M prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 Designery unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,349,579
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: retail
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $185K–$420K
Working capital
$
FDD reports $20K–$50K

Unlevered ROIC · per unit

28%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$94K
EBITDA margin
7.0%
Total invested
$338K
Payback
43 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.

Overview

About

The Designery franchisees operate custom design studios offering personalized design services (likely interior design, graphic design, or similar). Day-to-day operations typically involve client consultations, design project management, material sourcing, and delivery of design solutions within protected territories.

CEO
Jeffrey Dudan
Founded
2021
FDD year
2025
States available
15

Item 7 · what it costs

The Vitals

Total investment
$185K – $420K
All-in to open one unit
Liquid capital
$20K – $50K
Cash you must have on hand
Franchise fee
$55K
Royalty
the greater of: (i) a blended 7%-5% of Gross Revenue; or …
Ad fund
2.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical
Payback period
1.8 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.3M
Per unit, per year
Median gross sales
Item 19 type
Actual (Showroom-based locations)
Sample size
2 units
vs category median 42 · small
Range (low → high)
$922K$1.8M
Cohort dispersion
Transparency
9 / 5
vs category median 4 / 5 · above
Revenue rank53th
vs Business Services - Printing & Signs peers
Investment cost rank53th
Lower investment ranks lower (better)
Royalty rate rank57th
Lower royalty = lower percentile (better)
Unit count rank60th
vs Business Services - Printing & Signs peers
Risk score rank37th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
73
Opened
53
Last reporting year
Closed
1
Turnover rate
1.4%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2023
73+52
Franchised units
2024
21
Franchised units
2025
4
Franchised units

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

Item 20 · 16 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 · 16 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.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

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

Risk & Legal

52
Risk · 0-100
STRONG52 / 100

The Designery shows concerning litigation, opaque royalty structures, and franchisor financial stress despite rapid unit growth, warranting careful validation of franchisee profitability claims.

Score breakdown · what drove the 52 / 100 rating

  1. 01HIGHActive litigation involving franchisor vs. franchisee with counterclaims of fraudulent misrepresentation raises governance and disclosure concerns
  2. 02MINORExplosive unit growth of 247.6% YoY suggests either aggressive expansion or acquisition of struggling units, creating sustainability questions
  3. 03MINORMinimum Monthly Royalty Fee structure (blended 7%-5%) is opaque; actual royalty burden unclear and could significantly impact the stated $172k average net income
  4. 04MINORHigh ratio of franchise fee ($54,900) to average net income ($172,359.50) means ROI breakeven could take 4+ months even at optimal performance
  5. 05HIGHGoing Concern flag indicates potential financial stress at franchisor level despite system growth, raising support and viability questions

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Household count
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
21 hrs
On-the-job training
20 hrs
POS system
Service Minder
Operating tech stack

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

19 numbers

Locked
(808) 586-••••
HI
(217) 782-••••
IL
(410) 576-••••
MD

One-time purchase · CSV download · Validation questions included

FDD download

The Designery · FDD (2025) PDF

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