Risk Score
Pending analysis
Investment Range
$185,439 - $420,439
Franchise Fee
$49,900
Min Cash Required
$20,000
Total US Locations
73
Business Summary
The Designery operates businesses that provide design and installation services for kitchen, bath, and closet projects. These services are offered for both new construction and renovation of residential and commercial properties. Franchisees must also offer and sell approved products related to these services.
Corporate History
A1 Kitchen & Bath Franchising, LLC was previously a Georgia limited liability company formed on May 3, 2021, and converted to a North Carolina limited liability company on March 11, 2022. The Designery, operating under its primary mark "THE DESIGNERY Kitchen Bath Closets®," offers individuals and entities the right to operate businesses providing design and installation services for kitchen, bath, and closet projects. The Designery began offering franchised businesses on May 15, 2021. The franchisor itself does not operate any of its own The Designery franchised businesses, but two affiliates, A1 Kitchen and Bath Design, LLC (which rebranded to "The Designery" in October 2022 after being acquired by current owners in 2019), and Top Shelf Cabinetry, LLC, operate substantially similar businesses. In May 2025, The Designery is scheduled to become a subsidiary of HFB Franchisor Holdings, LLC.
Financial Overview
Investment Range
$185,439 - $420,439
Franchise Fee (Low)
$49,900
Franchise Fee (High)
$68,900
Minimum Cash Required
$20,000
Royalty %
7%
Marketing %
5%
Equipment Costs (Low)
$40,500
Equipment Costs (High)
$197,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The Designery's financial statements for the year ended December 31, 2024, show that it experienced a net loss. The auditors noted that the company has had recurring net losses from operations. While the members of The Designery have historically provided enough capital to fund operations and plan to continue doing so if needed, management believes that future cash flow from operations and continued financial support will help the company become profitable. Subsequent to the year-end, The Designery decided to stop operating TD Fulfillment Services, LLC and is outsourcing materials fulfillment, which is expected to be completed by June 30, 2025.
Financing Details
The Designery does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any of their notes, leases, or other financial obligations. Franchisees must arrange their own funding.
Performance Metrics
Total US Locations
73
Franchised Units
73
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
The Designery has one active lawsuit. On April 16, 2025, The Designery filed a lawsuit in North Carolina against Proverbs 163 Ventures, Inc., Joel Senger, Amy Senger, and Senger Custom Homes, LLC. The lawsuit seeks a court ruling that the franchise agreements were correctly ended because the franchisees allegedly broke their contract by not paying royalty and advertising fees and by violating a non-compete clause. The Designery is also seeking financial compensation for the breach of contract and a court order to stop trademark infringement and unfair competition.
Bankruptcy History
The Designery has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, The Designery franchisees must provide written notice of their intent to renew 12 to 18 months before the current term ends. They must prove their right to operate at the approved location for the renewal term or secure an acceptable substitute. Franchisees are required to update equipment, supplies, inventory, hardware, software, vehicles, and refurbish their premises to meet current System standards for new franchisees, completing this at least 90 days before expiration. They must not be in breach of any agreements with The Designery, its affiliates, or approved suppliers, and must have substantially complied with these agreements throughout their terms. All monetary obligations to The Designery, its affiliates, and suppliers must be satisfied and timely met. Franchisees must sign The Designery's then-current franchise agreement (which may have different terms, including increased fees) at least three months before the current agreement expires. They also need to satisfy current training requirements, hold all necessary licenses and permits, execute a general release, and pay a renewal fee of $5,000. The Designery may also resize the territory, potentially leading to more territories and a multi-unit addendum. For multi-unit addenda, the renewal fee is $5,000 for the first agreement and $1,000 for each additional one renewed at the same time in contiguous territories.
Training & Support Program
Franchisor Assistance
The Designery provides extensive assistance to its franchisees. Before opening, The Designery defines the Designated Territory, offers site selection guidelines, provides initial training (41 hours held at its Home Office in Huntersville, NC, other designated locations, or virtually, plus optional on-the-job training), grants access to the Operations Manual, supplies a list of approved suppliers and equipment, and offers advice and guidance for the start-up phase. The Designery must approve the business opening, which typically occurs within 90 to 180 days after the Franchise Agreement is signed, once all requirements are met. Franchisees are given a dedicated phone number for their business. After opening, The Designery reviews franchisee advertising, manages the Brand Fund for system-wide promotion, and offers additional consulting services upon request, including information on new developments. Mandatory or optional additional training programs are conducted periodically, including refresher training and an Annual Conference, for which franchisees must pay a fee and attend. The Designery also provides System and Manual updates, reserves the right to administer a Call Center and Business Management and Technology System, evaluates alternate suppliers, reviews relocation requests, and offers ongoing advice by phone, email, or other means. Remedial training may be required if The Designery determines a franchisee is not complying with System standards.
Initial Training Hours
41
Training Location
Home Office in Huntersville, North Carolina, and other designated locations near Charlotte, North Carolina, or virtually
Ongoing Support
After opening, The Designery provides ongoing support by reviewing franchisee-developed advertising and promotional materials, managing the Brand Fund (including providing unaudited statements of contributions and expenditures), and offering requested consulting services. The Designery also schedules mandatory or optional additional training programs, including refresher or advanced training annually, and requires attendance at an Annual Conference (with a fee). System updates, including modifications to the Operations Manual, Approved Products/Services, and Approved Suppliers, are provided. The Designery reserves the right to administer a Call Center and its Business Management and Technology System, evaluate alternate suppliers, review relocation requests, and offer ongoing advice by phone, email or other means. Remedial training may be required if The Designery determines a franchisee is not complying with System standards.
Franchise Requirements
Ideal Candidate Profile
The Designery seeks qualified individuals and entities with strong business acumen and financial strength. While no specific prior experience is required to operate a The Designery franchise, franchisees or their operating principals must commit their personal full-time attention and best efforts to managing and operating the business. The franchisor permits owners to engage in other non-competing businesses as long as it does not materially interfere with the franchise's operation. If a manager is employed, they must be approved by The Designery and complete the initial training program. Owners' spouses are also required to sign a personal guaranty.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
The Designery defines its franchise territories, typically consisting of approximately 80,000 Qualified Households, with the exact size dependent on geography, demographics, and other factors. Territory boundaries may be described using zip codes, streets, landmarks, or county lines, and are delineated on a map. Population data from publicly available sources like the U.S. Census Bureau is used to determine the population within the Designated Territory.
Staffing Notes
The Designery requires its franchisees to employ enough qualified, licensed, and competent staff to provide prompt, courteous, and efficient service, ensuring the business operates according to System standards to maintain its reputation. All employees are expected to adhere to The Designery's dress code and appearance standards. Franchisees are responsible for training all their employees and subsequent Designated Managers according to The Designery's standards and programs. If a Designated Manager departs, a replacement must be trained within 30 days of hiring.