Risk Score
Pending analysis
Investment Range
$169,700 - $178,700
Franchise Fee
$30,000
Total US Locations
9
Business Summary
Set The Stage offers services that involve furnishing and decorating residential and commercial real estate spaces on a temporary basis to help sell them faster. The company also sells furniture and decor products directly to home buyers and provides design consultation services to the general public. Set The Stage serves a diverse clientele including home sellers, real estate agents, builders, developers, investors, and consumers.
Corporate History
The business that forms the foundation of the Set The Stage franchise was originally created in 2013 under the name The Key Design, Home Staging Services. In October 2016, the principals of the current franchisor acquired The Key Design. The Key Design, LLC expanded its services in 2018 to include retail furniture and decor sales, as well as pre-listing consultation services and vacation rental furnishing packages. In June 2019, The Key Design, LLC acquired the trademark 'Set The Stage®' and began operating under that name. In 2020, Set The Stage® introduced 'Love Your Space' consultations for the public. Set The Stage, Inc. was then incorporated in Utah in August 2021 to develop and market franchises for aspiring entrepreneurs, and began offering franchises in 2022.
Financial Overview
Investment Range
$169,700 - $178,700
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$59,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$3,000
Equipment Costs (High)
$8,500
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Set The Stage are prepared on a cash basis, which is different from generally accepted accounting principles. As of December 31, 2023, the franchisor has negative shareholders' equity, totaling a deficit of $(131,723), and significant related party payables amounting to $196,700, suggesting reliance on its parent company. The company also reported a net loss of $(63,614) in 2023. These factors led the franchisor to explicitly state in its Special Risks section that its financial condition calls into question its ability to provide services and support to franchisees.
Financing Details
Set The Stage does not offer any direct or indirect financing options to its franchisees. However, if requested, Set The Stage can provide referrals to preferred third-party institutions that may assist with financing.
Performance Metrics
Total US Locations
9
Franchised Units
8
Corporate Units
1
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Set The Stage has no litigation history to report. No litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Set The Stage has no bankruptcy history. No bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document for the franchisor or its key management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Set The Stage franchisees must give written notice between six and nine months before the current term expires. They must be in full compliance with all provisions of their existing Franchise Agreement and any other agreements with Set The Stage or its affiliates. Franchisees are required to sign Set The Stage's then-current form of Franchise Agreement, which may have materially different terms and conditions. They must also pay a renewal fee of $5,000 and sign a general release of any claims against Set The Stage and its affiliates.
Training & Support Program
Franchisor Assistance
Before opening, Set The Stage provides assistance with territory location and size, offers up to four weeks of pre-opening training through its 'Setting the Stage Program' (primarily at its Sandy, Utah location), helps arrange visits to existing franchise locations, provides a Starter Package of materials, loans the Operations Manual, and grants access to its technology and software. Set The Stage also schedules marketing and sales presentation training and assists with the Grand Opening after a fee is paid. Once operational, ongoing support includes telephone and email assistance from experienced staff, on-site training, franchise meetings or conference calls, guidance on pricing (except for national accounts), consultation on performance and compliance, access to vendor ordering portals, and administration of advertising programs. Set The Stage may also provide additional advertising materials, literature, and bulletins on new products or techniques via its online portal. Franchisees are required to attend an annual Summit to discuss best practices and updates.
Initial Training Hours
64
Training Location
Sandy, Utah
Ongoing Support
After opening, Set The Stage provides franchisees with continuous support through telephone and email assistance from experienced staff and trainers, available Monday through Friday during regular business hours. Franchisees also receive on-site training in the field, either in Utah or within their operating territory. Set The Stage holds franchise meetings or conference calls, consults with franchisees on performance and compliance, and offers guidance on pricing. Set The Stage administers its advertising program and formulates national, regional, or local promotional programs. Franchisees receive ordering portals and vendor guidance, and have access to additional assistance and bulletins on new products, services, or sales techniques, which may be provided through a password-protected website. Franchisees are required to attend an annual Summit, typically in January, to review best practices and industry trends.
Franchise Requirements
Ideal Candidate Profile
Set The Stage seeks individuals looking for an active, rather than passive, investment, requiring them to directly supervise their franchised business. Franchisees must dedicate a minimum of 35 hours per week to sales and management activities for at least the first two years of operation, or until a qualified and approved manager is hired. If the franchisee is an individual, they must personally perform or supervise operations unless Set The Stage provides consent otherwise. Set The Stage also recommends that all managers attend its franchisor training classes.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Set The Stage provides an exclusive operating territory defined by factors such as population statistics, demographics, number of residences, and population concentration. A typical operating territory is designed to support approximately 250,000 people. The exact boundaries are determined based on the franchisee's approval, market analysis, and franchise placement strategies, with territory maps provided in advance. Set The Stage reserves the right to redefine a territory only upon renewal or transfer, ensuring a population base of at least 250,000 people is maintained.
Staffing Notes
Set The Stage franchisees may hire a manager or management team to assist in operating the business, subject to franchisor approval. Franchisees are responsible for hiring and training all management employees and team members at their own expense. All management personnel and team members are required to sign annual non-disclosure and non-compete agreements. Managers are recommended to attend the franchisor's training classes. Franchisees are also responsible for informing Set The Stage immediately if any management personnel are terminated.