FRANCHISE·WATCH·DESK

Verified — real FDD extraction

Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender

Set the Stage

Other · independent · est. —

Set the Stage is a home staging franchise that furnishes and styles vacant and occupied homes to help them sell. A franchisee manages a furniture inventory and staging team, working with real estate agents, home sellers, and builders on staging contracts, with revenue from staging fees and monthly rentals.

Set the Stage net unit count grew +850.0% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & strong

Distress

0
STABLE

Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: the system is growing.

Exit rate · latest year

0.0%

fiscal 2025, per Item 20

Cost to open

$204K–$261K

Item 7 total investment range

SBA loan defaults

Too few resolved

26 loans exist; too few resolved to rate

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Strong
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2023–2025

+850.0%
1220234920241142025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 0 of 48 franchised outlets left the system — a 0.0% annualized exit rate. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start21249
Opened103765
Transfers001
Terminations000
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons000
Outlets at end1249114
Net change+10+37+65

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 26 SBA-backed loans to Set the Stage franchisees since 2024. Most are still open, so there is not yet a resolved cohort large enough to rate.

Charge-off rate

0 resolved · too thin to rate

Loss given default

avg. charged-off $ ÷ approved $

Expected loss

default rate × loss severity

Avg. loan · FY2020+

$237,530

what recent franchisees borrowed

Median time to default

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

distinct banks lending

Charge-off rate by loan approval year (%)

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO SET THE STAGE BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Manageable debt load

A typical Set the Stage buyer since 2020 borrowed $238K through SBA — about $38K a year in debt service. Against the brand's own disclosed median unit revenue of $567K, that is 6.7% of every dollar the store takes in — before rent, payroll, food, or royalty.

Who finances it

United Midwest Savings Bank National Association

65.4% of this brand's loans

That lender charges off 35.1% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

Too few identified operators

Does experience help here?

Not enough resolved loans to split

Computed from 26 SBA 7(a)/504 loans to Set the Stage franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $60K franchise fee (Item 5) and a total investment of $204K–$261K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$204K–$261K

all-in investment range

Franchise fee (Item 5)

$60K

upfront, one-time

Royalty (Item 6)

6%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$60K

6% of sales, before profit

Over a 10-yr term

$600K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for Set the Stage with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Moderate

The public record puts this brand toward the middle of the systems we score — but the evidence is thin, so treat it as a range, not a number.

Risk percentile (range)

30–54 / 100

Directional

Modeled SBA charge-off

11.5%

Observed SBA charge-off

no resolved cohort

Top drivers: Share financed by high-loss lenders (raises) · Net unit growth (lowers) · Single-lender dependence (lowers) · Item 20 exit rate (lowers). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for Set the Stage. That's a good sign — but it reflects news coverage, not a guarantee.

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Set the Stage franchise questions, answered from the filings

What percentage of Set the Stage franchises closed last year?

In Set the Stage's latest FDD Item 20 (fiscal 2025), 0 of 48 franchised outlets left the system — an annualized exit rate of 0.0%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a Set the Stage franchise cost?

Per Set the Stage's 2026 FDD, buying in requires an initial franchise fee of $60K (Item 5) and a total initial investment of $204K–$261K (Item 7).

What royalty does Set the Stage charge?

Set the Stage charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.

Does Set the Stage disclose earnings (Item 19)?

Yes — Set the Stage makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $567K. Read it closely: franchisors choose which units and which metrics to include.

Is Set the Stage a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk