The Designery Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Designery is a home-improvement franchise providing custom kitchen, bath, and closet cabinetry design and remodeling. Franchisees run a design studio-and-install operation handling consultations, design, and installation in a territory.
FranchiseVerdict summary · 2026
A The Designery franchise requires a total initial investment of $185K – $420K, including a $55K – $69K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $185K – $420K
- 53rd pct Business Serv…
- Avg gross sales
- N/A
- Outlet subset2 outlets
- Royalty
- N/A
- Units
- 73
- 43rd pct Business Serv…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $185K – $420K including a $55K franchise fee.
- RETURNSItem 19 reports Actual (Showroom-based locations) rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 1725.0% CAGR over 3 years with 73 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- A1 Kitchen & Bath Franchising, LLC
- Parent company
- HFB Franchisor Holdings, LLC
- Ultimate parent
- HFB Enterprise Holdings, LLC
- CEO title
- Chief Executive Officer
- Jeffrey Dudan
- 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
Overview
About
- CEO
- Jeffrey Dudan
- Headquarters
- NC
- Founded
- 2021
- FDD year
- 2025
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 9% above the typical business services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $20K | $50K |
| Equipment, build-out, other | $111K | $316K |
| Total initial investment | $185K | $420K |
Source: The Designery 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $185K – $420K
- Middle of category vs category
- Liquid capital req'd
- $20K – $50K
- Top 40% of category vs category
- Franchise fee
- $55K – $69K
- Middle of category vs category
- 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
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $599 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
The Designery did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one The Designery unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
33%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
Based on only 2 outlets
- Item 19 type
- Actual (Showroom-based locations)
- Sample size
- 2 outlets
- vs category median 35 · small
- Range (low → high)
- $922K→$1.8M
- Cohort dispersion (min → max)
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% — below the Business Services average of 11.9%.
Disclosure
Item 19 reports Actual (Showroom-based locations) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 1725.0% CAGR over 3 years across 73 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How The Designery Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 73
- Opened
- 52
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 52
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 15 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
15
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $2.8M
- Median loan
- $378K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
- Typical loan rate
- 10.1%
- avg rate to borrowers
- Franchised industry avg
- 17.1%
- brand beats franchise avg ↓
- Jobs supported
- 43
- 1.5 per loan
- Lender concentration
- 91%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in residential remodelers, franchised businesses charge off at 17.1% vs 22.4% for independents — franchising is associated with 24% lower SBA default risk in this category.
Top lenders financing The Designery franchisees
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Designery's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 86 / 100 verdict
- 01MINOROne franchisor-initiated termination suit
- 02MINORNo bankruptcy/going-concern/distress
- 03MEDAudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Household count |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 20 hrs
- POS system
- Service Minder
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Service Minder
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Designery franchise?
The total investment to open a The Designery franchise ranges from $185K – $420K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Designery franchise owners earn?
The Designery does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the The Designery FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the The Designery FDD and qualifies whose outlets they describe.
What is The Designery's franchise failure rate?
Based on SBA 7(a) loan data, The Designery has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many The Designery franchise locations are there?
As of their most recent FDD filing, The Designery has 73 total units in the United States, including 73 franchised units and 0 company-owned units. 52 new units were opened in the latest reporting year.
Is The Designery a good franchise to buy?
FranchiseVerdict rates The Designery as a A-grade franchise with a verdict score of 86 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.