ShelfGenie Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$55,300 - $148,100
Franchise Fee
$28,000
Total US Locations
281
Business Summary
SHELFGENIE operates a mobile business that designs and installs customized solutions for new and existing cabinets, pantries, closets, garages, and other storage structures. SHELFGENIE franchisees serve both residential and commercial customers.
Corporate History
The SHELFGENIE brand was originally established by its predecessor, ShelfGenie Franchise Systems, LLC, a Georgia limited liability company, which was formed in November 2007. Franchises for SHELFGENIE businesses have been offered since 2008. In September 2020, the predecessor became a wholly-owned subsidiary of ShelfGenie Holdings LLC, which in turn became a wholly-owned subsidiary of Dwyer Franchising LLC, known as Neighborly. In March 2021, a securitization transaction led to the transfer of all U.S. franchise agreements and intellectual property to the current franchisor, ShelfGenie SPV LLC, a Delaware limited liability company organized in November 2020. As of August 2021, Nest Bidco Inc., controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR), became the indirect parent company of SHELFGENIE.
Financial Overview
Investment Range
$55,300 - $148,100
Franchise Fee (Low)
$28,000
Franchise Fee (High)
$139,500
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$12,250
Equipment Costs (High)
$36,000
Working Capital
$5,250
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for SHELFGENIE's direct parent, Neighborly Assetco LLC, have received an unqualified audit opinion, indicating they present fairly in all material respects. The auditor's report noted that management evaluated for any conditions or events that would raise substantial doubt about the company's ability to continue as a going concern and found none. Additionally, management believes it is not probable that the company has incurred any loss contingencies, and the Issuer was in compliance with all debt-service coverage covenants as of December 31, 2024 and 2023. These factors suggest a financially healthy position for the SHELFGENIE brand and its parent company.
Financing Details
SHELFGENIE does not have an obligation to provide financing, but it may offer to finance a portion of the initial franchise fee for qualified prospective franchisees. The standard financing covers up to 70% of the initial franchise fee, and in some cases, up to 80% if certain requirements are met. The interest rate for this financing is credit-score dependent, ranging from 12% for scores under 600, to 9% for scores of 700 or more. Franchisees must sign a promissory note, with repayment terms negotiable up to 5 years. Payments are made through automatic bank draft, beginning approximately two months after completing SHELFGENIE training. SHELFGENIE requires a security interest in the business's assets and may file a UCC financing statement. Franchisees may prepay the note without penalty. Default on the note or the Franchise Agreement can result in the entire remaining amount becoming immediately due. SHELFGENIE does not guarantee franchisees' obligations to third parties. Limited financing may also be available for renewal fees at a 12% interest rate for qualified franchisees.
Performance Metrics
Total US Locations
281
Franchised Units
261
Corporate Units
20
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
3
Litigation Summary
The SHELFGENIE brand has been involved in three legal cases. One concluded action involved SHELFGENIE's predecessor, Cabinet Essentials Group, LLC, and G-O Manufacturing, LLC suing former dealers for breaching a Dealer Agreement and misusing confidential information. This case was filed in 2013 and eventually settled on September 29, 2020, with mutual releases and the Virginia court order being deemed satisfied. Additionally, there were two administrative orders involving affiliates of SHELFGENIE. In 2017, a predecessor to the affiliate Window Genie, FOR Franchising LLC, and its then-president entered a Consent Order with California for failing to submit advertisements, resulting in a $5,000 penalty and mandatory training. In 2010, a predecessor to the affiliate Molly Maid, Inc. entered a Consent Judgment with Kansas regarding a franchisee's inability to document background checks and the sale of gift certificates after franchise termination, leading to a $25,000 civil penalty and $25,175 for investigation costs. This matter was resolved in 2011. There is no other litigation required to be disclosed for the SHELFGENIE brand.
Bankruptcy History
The SHELFGENIE brand itself has no direct bankruptcy history. However, the Franchise Disclosure Document discloses bankruptcy proceedings involving portfolio companies controlled by KKR, which is SHELFGENIE's indirect parent company. These proceedings include: The Collected Group LLC (a fashion brand owner) filed a Chapter 11 Plan of Reorganization in April 2021 and emerged in May 2021. Envision Healthcare Corporation (a healthcare provider) filed a Chapter 11 reorganization in May 2023 and emerged in November 2023. Genesis Care Pty Limited (a healthcare provider) filed a Chapter 11 reorganization in June 2023 and emerged in February 2024. IPI Legacy Liquidation Co. (a pharmaceutical company) filed a Chapter 11 reorganization in December 2023 and emerged in April 2024. Lastly, Café Coffee Day (an operator of cafes in India) filed an insolvency resolution in August 2024, which was later set aside by an appellate tribunal in February 2025. These bankruptcies do not involve SHELFGENIE directly.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, SHELFGENIE franchisees must not be in default of their current Franchise Agreement or any related agreement, must have satisfied all monetary and other material obligations on time, be in good standing, and have received no more than two written default notices during the term. Additionally, franchisees must not have failed to meet the Minimum Performance Standards for any two calendar years (or two measurement periods) during the term. Franchisees must provide written notice of their intent to renew between 180 and 240 days before the current term expires, sign a general release of claims, and pay a renewal fee of $5,000 (or the greater of $5,000 or $1,750 per territory for Executive franchises). They must also complete current training requirements, sign SHELFGENIE's then-current franchise agreement (which may have different terms and fees), and if renewing an Executive franchise, simultaneously renew all associated Franchise Agreements for adjacent territories.
Training & Support Program
Franchisor Assistance
SHELFGENIE provides comprehensive assistance to its franchisees. Before opening, SHELFGENIE offers site selection guidelines, approved supplier lists, and access to an Operations Manual detailing business procedures. It also provides an initial training program and opening support. Ongoing assistance includes maintaining a Marketing, Advertising and Promotion (MAP) Fund, updating lists of approved supplies, and conducting periodic on-site visits for consultation. SHELFGENIE also provides refresher training, regional meetings, and conventions, which may incur a fee for attendees. Additionally, it offers ongoing communication, updates to the Operations Manual, and may suggest pricing policies or negotiate Key Account arrangements. Franchisees are required to participate in a Call Center Program and use a designated business management software. An optional third-party web-based job applicant tracking system is also available.
Initial Training Hours
72
Training Location
Corporate headquarters in Waco, TX, or virtually
Ongoing Support
After opening, SHELFGENIE provides several forms of ongoing support to its franchisees. This includes maintaining a Marketing, Advertising and Promotion (MAP) Fund, which is used for system-wide marketing and brand awareness initiatives. SHELFGENIE also provides regular updates to lists of approved supplies and suppliers and continues to research and develop new products and services. Franchisees receive periodic visits from SHELFGENIE representatives for consultation and guidance. Refresher training courses, regional meetings, and annual conventions are offered, with potential attendance fees. Ongoing communication, support, and updates to the Operations Manual are continuously provided. SHELFGENIE may also offer suggestions regarding pricing policies and has the right to negotiate Key Account arrangements, which might include specific pricing structures. Franchisees are required to use a designated business management software and participate in a Call Center Program that handles customer requests and scheduling.
Franchise Requirements
Ideal Candidate Profile
SHELFGENIE seeks qualified individuals for its franchise. Ideal candidates for an Executive Franchise are required to simultaneously purchase two territories and meet the qualifications set by the franchisor, including expansion criteria for additional territories. Candidates for the Owner/Operator Franchise are also expected to meet qualifications. The franchisor offers incentives for honorably discharged veterans, providing a 20% discount on the initial franchise fee for their first business. Existing franchisees who have been generating sales in unserviced areas (TAFS) may also receive discounts on additional territories if they meet expansion criteria and performance thresholds, including compliance with the system, operational success (meeting or exceeding certain performance thresholds), leadership ability, team development, financial stability, and the ability to expand. Franchisees are expected to comply with operational and customer service standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
SHELFGENIE territories are defined using statistical information from databases, primarily based on the number of houses or households. For an Executive Franchise, a business must purchase at least two contiguous territories, each containing approximately 125,000 households, resulting in a total territory size of 250,000 to 375,000 households. Owner/Operator Franchise territories are tailored for more sparsely populated areas, ranging from approximately 75,000 to 150,000 households, and up to 200,000 households. All territories are identified by specific ZIP Codes and accompanied by a map in the Franchise Agreement.
Staffing Notes
SHELFGENIE requires the franchisee, or their designated Principal Owner if an entity, to directly supervise or personally operate the business, unless the franchisor provides consent otherwise. If an owner does not personally supervise, a qualified and trained manager must oversee the business. Franchisees must employ enough competent and trained staff to ensure efficient customer service and are solely responsible for all employment decisions, including hiring, wages, benefits, training, and termination. All employees or subcontractors entering a customer's home must pass required background checks. Specialized training programs are mandatory for certain roles; for instance, installers must complete a 2-day Installer Training, and designers must complete a 2.5-day Certified Designer Program within 120 days of hire. Additionally, franchisees are required to use a designated vendor, Quatro Global Services, for monthly bookkeeping services.