Risk Score
Pending analysis
Investment Range
$129,035 - $156,185
Franchise Fee
$55,000
Total US Locations
45
Business Summary
Art of Drawers businesses specialize in designing and installing custom pull-out shelving and storage solutions to retrofit existing cabinets, pantries, closets, drawers, and other household areas. Art of Drawers businesses also provide lighting fixture installation and may offer additional services such as cabinet refacing and organizational solutions.
Corporate History
Art of Drawers Franchise Systems, LLC was founded on December 12, 2022, in Georgia. Operating under the name Art of Drawers, the company began offering franchises for Art of Drawers Businesses in April 2024. While the franchisor entity itself does not conduct the type of business it franchises, an affiliate, AOD Markets, LLC, has been operating one Art of Drawers Business in Georgia since 2019. The parent company, Art of Drawers, LLC, owns the intellectual property for the brand and licenses it to the franchisor.
Financial Overview
Investment Range
$129,035 - $156,185
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$350,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$34,000
Equipment Costs (High)
$41,000
Working Capital
$5,500
Audited Financials
No
Offers Financing
No
Financial Health Notes
Art of Drawers Franchise Systems, LLC's financial condition raises concerns about its ability to provide services and support to franchisees. The company has reported negative working capital, meaning its short-term assets are not sufficient to cover its short-term liabilities. As of December 31, 2024, Art of Drawers Franchise Systems, LLC had a negative working capital of $114,714 and a member's deficit of the same amount. This situation worsened from 2023, where it had a negative working capital of $53,000. These financial statements have been reviewed by an independent accountant, not audited, meaning the accountant expresses no opinion or assurance about the fairness of the presentation.
Financing Details
Art of Drawers Franchise Systems, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for its franchisees. Therefore, prospective Art of Drawers franchisees will need to secure their own funding for the investment.
Performance Metrics
Total US Locations
45
Franchised Units
45
Corporate Units
0
Avg Square Footage
750
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Art of Drawers Franchise Systems, LLC has no litigation to report in Item 3 of its FDD. This means that Art of Drawers Franchise Systems, LLC, its predecessors, parents, affiliates, or individuals named in Item 2 have not been involved in any material litigation, including administrative, criminal, or civil actions, within the specified disclosure periods.
Bankruptcy History
Art of Drawers Franchise Systems, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Art of Drawers franchisees can renew their franchise agreement for up to two additional 10-year terms if they meet certain conditions. They must notify Art of Drawers in writing between 60 and 180 days before their current term expires. Franchisees must be in good standing, meaning they are not in default of their franchise agreement or any other agreements with Art of Drawers or its affiliates, and must not have received more than three separate written notices of default from Art of Drawers in the 12 months prior to their renewal notice. They are required to sign Art of Drawers' then-current form of franchise agreement and all related ancillary documents, which may have substantially different terms and conditions, including potentially higher royalty and advertising contributions. A general release of all known and unknown claims against Art of Drawers and its affiliates must be signed by the franchisee and each of its owners. Art of Drawers franchisees must also pay a non-refundable renewal fee of $10,000 for each Art of Drawers Business they renew. Furthermore, franchisees must undertake any necessary renovations, refurbishments, and modernizations to their storage area and/or office, as well as their equipment and inventory, to meet Art of Drawers' then-current system standards for a newly opened Art of Drawers Business, all at their own expense. This might include a requirement to maintain a commercial or shared office space. Finally, franchisees must comply with any additional reasonable actions that Art of Drawers may require.
Training & Support Program
Franchisor Assistance
Before opening an Art of Drawers Business, Art of Drawers provides an initial training program and loans the franchisee a confidential Franchise Operations Manual. Art of Drawers also offers materials and consultation for a grand opening program if the franchisee chooses to participate. Art of Drawers does not assist with locating the franchisee's storage facility or office. During the operation of an Art of Drawers Business, Art of Drawers informs franchisees of mandatory operating standards, specifications, and procedures. It provides three days of on-site and field support for setting up the warehouse or storage space. Upon reasonable request, Art of Drawers offers advice on business operations, given during regular business hours through written materials, electronic media, or telephone. Art of Drawers may provide additional training for newly hired personnel, refresher courses, remedial training, or advanced training, for which additional fees may apply. Franchisees are allowed to continue using confidential materials, including the Franchise Operations Manual and Art of Drawers Marks, and receive a list of designated and approved suppliers. Optionally, Art of Drawers may modify the system (including new products or techniques), make periodic visits to assist with operations (reimbursable expenses and fees if requested), maintain and administer a Brand Fund, hold national or regional conferences, and establish minimum and maximum resale prices for marketing programs. If Art of Drawers provides media buying services, a 15% fee of the media purchase price applies.
Initial Training Hours
40
Training Location
Corporate headquarters in or near Atlanta, Georgia, and online.
Ongoing Support
After opening an Art of Drawers Business, franchisees receive continuous support. Art of Drawers informs them of mandatory operational standards, specifications, and procedures. They provide three days of on-site and field support for setting up the warehouse or storage space once it's acquired. Upon reasonable request, Art of Drawers offers advice and guidance on business operations, based on reports or inspections, which is given during regular business hours through written materials, electronic media, or telephone. Art of Drawers provides additional training for newly hired personnel, refresher courses, and advanced or remedial training, for which fees may be charged per attendee. Installer training (with a fee for independent contractors) and refacing training (with a fee per person) are also available after opening. Franchisees continue to use confidential materials like the Franchise Operations Manual and the Art of Drawers Marks, and are provided with a list of designated and approved suppliers. Art of Drawers may also, at its discretion, modify the System, including products and services, and may conduct periodic visits to the Art of Drawers Business for assistance, which may incur fees if requested by the franchisee. Art of Drawers maintains and administers a Brand Fund for system-wide marketing. Art of Drawers also holds periodic national or regional conferences, and the franchisee's Responsible Owner or Franchise Manager is required to attend, with a conference fee applicable.
Franchise Requirements
Ideal Candidate Profile
Art of Drawers seeks individuals to be a "Responsible Owner" for their franchise. This person must assume authority and responsibility for the daily operations of the Art of Drawers Business and dedicate a minimum of 20 hours per week to it. If the franchisee is a legal entity, the Responsible Owner must hold at least a 25% equity interest. The franchisor emphasizes that active, continuous, substantial personal involvement and hands-on supervision from the Responsible Owner are crucial for the business's success.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Art of Drawers territories are defined based on a geographic area, considering population and other demographic characteristics. The company aims to grant territories with a population of either 375,000 people or 150,000 households, whichever is greater. These population statistics are derived from current U.S. Census reports and other chosen sources. In densely populated metropolitan areas, Art of Drawers territories might be smaller, while in less densely populated urban areas, they may be significantly larger.
Staffing Notes
Art of Drawers franchisees must designate a 'Responsible Owner' (the individual franchisee or an owner with at least 25% equity in the entity) who is responsible for day-to-day operations and must be actively involved for a minimum of 20 hours per week. Franchisees may also hire an approved 'Franchise Manager' to assist with daily management, who must successfully complete the initial training program. Art of Drawers franchisees are solely responsible for determining and managing all staffing levels, including hiring, training, and supervising their own employees or independent contractors. The FDD mentions that installers and designers are anticipated roles, with installers requiring specific training. The franchisee is responsible for all employment-related decisions and compliance, and must ensure employees and contractors understand they work solely for the franchisee.