Real Deals logo

Real Deals Franchise

Audited Financials
RetailEst. 2006Buhl, ID
www.realdeals.net

Risk Score

Pending analysis

Investment Range

$142,850 - $268,400

Franchise Fee

$30,000

Min Cash Required

$20,000

Total US Locations

45

Business Summary

Real Deals on Home Décor operates retail Shoppes that sell a variety of merchandise. These products include home décor, furniture, home accessories, jewelry, clothing, personal accessories, and food and beverage items.

Corporate History

Real Deals on Home Décor's concept began in 2003 with its predecessor, Real Deals on Home Décor, Inc., which used the marketing and merchandising model. Real Deals, Inc., the current franchisor, was incorporated in Idaho in July 2006 and started offering and selling Home Décor® franchises in August 2006. The predecessor corporation was administratively dissolved in December 2015.

Financial Overview

Investment Range

$142,850 - $268,400

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$30,000

Minimum Cash Required

$20,000

Royalty %

5%

Marketing %

1.5%

Equipment Costs (Low)

$16,650

Equipment Costs (High)

$74,500

Working Capital

$25,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Real Deals on Home Décor appears to be in good financial health. The auditor has issued an unqualified opinion on its financial statements for December 31, 2024, and 2023, indicating that the financials are presented fairly. The company has no significant credit risks with its cash balances and recently fully repaid a loan to a related party. Real Deals on Home Décor is not exposed to any significant credit risks on its cash or cash equivalents, and no going concern issues were noted by the auditors.

Financing Details

Real Deals on Home Décor does not offer any direct or indirect financing to its franchisees. This means that Real Deals on Home Décor will not provide loans or guarantees for things like the initial franchise fee, equipment, or working capital. Franchisees are responsible for securing their own financing for their business.

Performance Metrics

Total US Locations

45

Franchised Units

45

Corporate Units

0

Avg Square Footage

3,000

Franchising Since

2006

Agreement Terms

Initial Term

5 years

Renewal Term

10 years

Renewal Conditions

To renew their Real Deals on Home Décor franchise, franchisees must be in good standing, meaning they are not in default of their franchise agreement and have complied with its terms. They must also pay a successor franchise fee, modernize their Shoppe to meet the franchisor's current standards, and sign the franchisor's then-current franchise agreement, which may include different terms. Franchisees are required to notify Real Deals on Home Décor of their intent to renew between 6 and 12 months before their current agreement expires.

Training & Support Program

Franchisor Assistance

Real Deals on Home Décor provides various forms of assistance to its franchisees. Before opening, Real Deals on Home Décor designates a site search area and approves the chosen premises. They provide general specifications for the Shoppe's layout, signs, equipment, and interior décor, along with a list of approved suppliers. Franchisees receive preliminary design plans and access to confidential operations manuals. Real Deals on Home Décor also assists in designing a pre-opening marketing campaign and provides an initial training program for up to four people at their training center in Twin Falls, Idaho. Additionally, up to three representatives visit the Shoppe for up to 32 hours of setup and design assistance. During operation, Real Deals on Home Décor offers remote assistance via phone and email, provides updates to the manuals, and maintains a brand website. They may conduct periodic evaluations and inspections of the Shoppe, hold mandatory annual conferences, and offer optional seminars. Real Deals on Home Décor also suggests retail prices, requires periodic remodels or upgrades to the Shoppe every five years or as needed for brand consistency, and continuously refine and develop products and services.

Initial Training Hours

48

Training Location

Twin Falls, Idaho

Ongoing Support

Real Deals on Home Décor provides ongoing support to its franchisees after opening through remote assistance via telephone and email, and by providing updates to the operations manuals. The franchisor maintains a brand website and may conduct periodic evaluations and inspections of the franchise business, which can be done in person or remotely. Real Deals on Home Décor also holds mandatory annual conferences and may offer additional seminars. The franchisor can institute a mentor program where experienced franchisees offer support. They also suggest retail prices, require remodels or upgrades to the Shoppe every five years or as needed for brand consistency, and continuously refine and develop products and services.

Franchise Requirements

Ideal Candidate Profile

Real Deals on Home Décor® seeks franchisees who are prepared for hands-on, full-time on-premises operation and supervision of their retail Shoppe for at least the first year. The ideal candidate will be directly responsible for overseeing all accounting, reporting, bookkeeping, and financial aspects of the business. They should be involved in site selection, construction, remodeling, and all personnel decisions. A Real Deals on Home Décor® franchisee must be committed to conducting frequent inspections to ensure high standards of professionalism, cleanliness, and compliance with the franchisor's approved methods to operate the business at maximum capacity and efficiency.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Full-Time

Territory Type

Exclusive

Territory Size Requirements

Real Deals on Home Décor territories are typically defined as a 3-mile radius from the franchise location, with a minimum population base of approximately 50,000 people. The specific size is determined by factors such as population density, business base, and whether the area is urban or rural (rural defined as 2,000 people or less per square mile). In cases where a Shoppe is in a mall, the territory might be limited to the mall's physical boundaries.

Staffing Notes

Real Deals on Home Décor states that franchisees are solely responsible for all aspects of employee management, including hiring, firing, scheduling, compensation, and compliance with labor laws. The franchisor may offer a sample employee manual, but franchisees must adapt it to their specific state and circumstances. Real Deals on Home Décor Shoppes are required to be open at least Thursday through Saturday, for a minimum of 7 hours per day, with a recommended operating time from 10:00 AM to 6:00 PM on those days.