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The Decor Group

Decor Group Franchising LLC
https://www.thedecorgroup.com
1-806-722-1225
2301 Crown Court, Irving, Texas 75038

How much does The Decor Group cost?

Initial Investment Range

$21,550 to $130,750

Franchise Fee

$9,400 to $88,900

This franchise is for the operation of a combined specialty event, holiday and decorating service, low voltage landscape and security lighting service and permanent architectural lighting service.

Enjoy our partial free risk analysis below

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The Decor Group December 19, 2024 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
2
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, Decor Group Franchising LLC (Decor Group), is a new company formed in October 2024 with no operating history. Its financial statement in Item 21 is an opening day balance sheet showing only minimal cash assets. This lack of financial history for the franchisor entity itself presents a significant risk, as its ability to support you, invest in the system, or withstand financial challenges is entirely unproven and may depend on its parent companies.

Potential Mitigations

  • Your accountant must carefully analyze the entire corporate structure, including the parent companies mentioned in Item 1, and any guarantees that may exist.
  • A business advisor should help you assess the operational and financial stability of the ultimate parent company, Wonder Franchises, LLC.
  • Asking your attorney about the legal ramifications of contracting with a newly formed, thinly capitalized franchisor entity is a necessary step.
Citations: Item 1, Item 21, Exhibit E

High Franchisee Turnover

Low Risk

Explanation

The data in Item 20 for the predecessor system does not indicate an unusually high rate of franchisee turnover from terminations or closures. Over the past few years, the percentage of franchisees leaving the system annually appears to be within a typical range. However, it is still crucial for you to understand the reasons behind any departures, particularly the non-renewals, as this could signal underlying issues not apparent from the numbers alone.

Potential Mitigations

  • Contacting former franchisees listed in Exhibit K is essential to understand why they left the system; your business advisor can help guide these conversations.
  • Discuss the reasons for all terminations and non-renewals listed in Item 20 with the franchisor.
  • Have your attorney review the conditions for renewal in Item 17 to assess why franchisees might choose not to renew.
Citations: Item 20, Exhibit K

Rapid System Growth

Low Risk

Explanation

This specific risk was not identified based on historical data. Rapid system growth can strain a franchisor's resources, potentially leading to inadequate franchisee support. While the predecessor's growth shown in Item 20 has been slow, the new franchisor projects significant future openings. It is important to ensure the new entity has the capacity to support this planned expansion.

Potential Mitigations

  • Your business advisor should help you question the franchisor about its plans to scale support infrastructure to match projected growth.
  • Engaging with your accountant to review the franchisor's financial capacity in Item 21 to support new franchisees is recommended.
  • Legal counsel can advise on the franchisor's contractual support obligations outlined in Item 11.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

You are contracting with Decor Group, a brand-new entity formed in October 2024 with no operating history as a franchisor. While it acquired an existing system from a predecessor, this new ownership and management team is unproven in its ability to manage this specific brand, provide support, and maintain system stability. The success of the business under new ownership is not guaranteed, presenting a significant investment risk.

Potential Mitigations

  • Thoroughly investigate the track record of the new parent company, Wonder Franchises, LLC, and its management team; your business advisor can assist.
  • Speaking with long-term franchisees from the predecessor system listed in Item 20 about the transition and new ownership is critical.
  • Your attorney should review the asset purchase agreement details mentioned in the notes to Item 21 to understand what was acquired.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified. Holiday decorating and landscape lighting are established service industries with a long history of consumer demand, not a short-term fad. The predecessor company's long operational history, as described in Item 1, suggests a sustainable business model rather than one based on a fleeting trend.

Potential Mitigations

  • It is still wise to conduct local market research with a business advisor to assess demand and competition in your specific area.
  • An accountant can help you analyze the financial viability based on the seasonal nature of the business.
  • Reviewing the franchisor's plans for service innovation in Item 11 with your attorney is also a good practice.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

While the CEO has long-term experience with the predecessor's system, the President of the new parent company, Wonder Franchises, has a background in other industries. This change in ultimate control and management philosophy introduces uncertainty regarding the future strategic direction, operational priorities, and culture of the franchise system. New ownership could change the support and franchisee relationship dynamics you might expect based on the system's history.

Potential Mitigations

  • A business advisor can help you research the professional background and track record of the new parent company's management.
  • Inquiring with long-term franchisees about their interactions with and impressions of the new leadership team is crucial.
  • Your attorney can help clarify the reporting structure and decision-making authority within the new organization.
Citations: Item 1, Item 2

Private Equity Ownership

Medium Risk

Explanation

The franchisor is ultimately owned by Wonder Franchises, LLC, an investment-oriented parent company. This structure can introduce risks where decisions prioritize short-term investor returns over the long-term health of franchisees. This could manifest as increased fees, reduced support quality, or a future sale of the entire system, which the Franchise Agreement permits without your consent. The focus may shift from operational excellence to rapid franchise sales to generate revenue for the parent.

Potential Mitigations

  • It is important to research the track record of the parent company, Wonder Franchises, LLC, and its principals, with help from a business advisor.
  • Speaking with existing franchisees about any changes they have noticed since the acquisition is critical.
  • Your attorney should review the assignment clause in Item 17 to understand the implications of a future sale of the franchise system.
Citations: Item 1, Item 2, Item 17, Item 21

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified, as the franchisor discloses its parent and ultimate parent companies in Item 1. However, the FDD only includes the financial statement for the new franchisor entity, not its parents. The financial strength of parent companies can be crucial, especially when the direct franchisor is a newly formed, thinly capitalized entity.

Potential Mitigations

  • Your accountant should assess the risk of contracting with a subsidiary without seeing the parent's financials.
  • Your attorney can help you inquire about obtaining financial information for the parent company, Wonder Franchises, LLC.
  • Understanding any formal financial guarantees the parent provides to the franchisor is critical for your attorney to review.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

Item 3 discloses that a predecessor entity, Christmas Decor, Inc., entered into a Consent Order with Maryland regulators in 2004 for offering franchises in violation of state law. While this event is dated and involved a prior corporate entity, it is part of the franchise system's history and indicates past compliance issues. You should ensure the new management has robust franchise law compliance systems in place.

Potential Mitigations

  • A franchise attorney can assess the significance of this past regulatory action and review the current franchisor's compliance practices.
  • You should ask the franchisor about the compliance procedures they have implemented since this event.
  • Verifying the franchisor's current registration status in your state is a task your attorney can perform.
Citations: Item 1, Item 3

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD. Item 3 does not disclose a pattern of litigation between the franchisor, its predecessor, and its franchisees, particularly on issues like fraud or breach of contract. A lack of significant litigation can be a positive indicator of the health of the franchise relationship, though it is not a guarantee of a dispute-free experience.

Potential Mitigations

  • It's still a good practice for your attorney to conduct an independent search for any litigation not required to be disclosed in the FDD.
  • Discussing the franchisor's dispute resolution philosophy with current and former franchisees is recommended.
  • Understanding the dispute resolution clauses in Item 17 with your attorney is also crucial.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
4
4
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
6
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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4

Legal & Contract Risks

Total: 16
5
6
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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5

Territory & Competition Risks

Total: 5
3
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
3
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
1
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.