About Decorating Den Interiors Franchise
Decorating Den Interiors is one of the longest running interior decorating franchises in the United States, having offered franchise opportunities since 1970.
The brand's signature approach brings the design showroom directly to clients' homes through a mobile, consultation based model that eliminates the need for a traditional retail storefront.
The franchise fee is $39,900.
Decorating Den Interiors Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,900 | One-time payment upon signing |
| Royalty Fee | 9% - 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Sales or $100/month minimum | National brand fund |
| Total Investment Range | $53,813 – $70,400 | Includes build-out, inventory, working capital |
The investment range of $54K–$70K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (9% - 7% of Gross Sales) and marketing fee (4% of Gross Sales or $100/month minimum) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,900 | $39,900 |
| Furniture, Fixtures and Equipment (Business vehicle leased or financed) | $0 | $1,800 |
| Furniture, Fixtures and Equipment (Computer Hardware, Software and Internet Access) | $1,075 | $2,500 |
| Technology Fee | $300 | $300 |
| Professional Fees (Accountants, Lawyers, etc.) | $0 | $3,200 |
| Licenses | $0 | $600 |
| Opening Inventory of Business Materials | $500 | $800 |
| Advertising and Marketing | $4,500 | $6,000 |
| Comprehensive General Liability and Vehicle Insurance | $450 | $1,200 |
| Travel and Related Expenses for initial training | $2,588 | $3,600 |
| Additional Funds -- 3 Months | $4,500 | $10,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Technology Fee | $100/month |
| Audit Fee | Varies (cost of audit ranges from $1,000 to $3,000) |
| Insufficient Funds Fee | $25 for each payment returned for insufficient funds |
| Interest | 1.5% per month, or maximum rate allowed by law |
| Late Fee | $50 for each report of Gross Sales that you do not file on time |
| Resale Assistance Fee | $10,000 |
| Annual Conference and Additional Training | $1,500 to $3,500 (estimated cost of travel and living expenses for optional attendance) |
| Training Fee (additional person) | $1,200 per additional person |
| Cooperative Advertising | As determined by cooperative (established by franchisees and paid locally) |
| Samples | $1,200 to $3,500 per year (payable to vendor) |
| Indemnification | Claims and costs incurred by DDSI |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 phases: onboarding, online instruction, virtual instruction, in person instruction, and practical instruction. |
| Classroom Training | Phase 1: Onboarding (Online courses, totaling 40 hours); Phase 2: Online Instruction (Online courses, totaling 20 hours); Phase 3: Virtual Instruction (Virtual classes on Zoom, totaling 32 hours); Phase 4: In Person Instruction (In person classes, totaling 40 hours); Phase 5: Practical Instruction (Online courses and Virtual classes on Zoom totaling 3 hours a week for 15 weeks). |
| On-the-Job Training | 0 |
| Training Location | Online from Franchisee Location, Virtual from Franchisee Location, Easton, Maryland |
| Additional Training | DDSI provides periodic training and communications to update skills, including training at annual conferences and special seminars. The Continuing Education Program offers one-, two-, and three-day courses in Sales Marketing, Product Knowledge, Lifestyle Design, and Business Management at Regional Centers, online, and at the Annual Lifestyle Conference. Attendance is voluntary, with a current registration fee of $895 for the annual conference and typically $50 to $150 per day for other periodic training. Travel, lodging, and daily living expenses are the franchisee's responsibility. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees operate from a Designated Location (typically their home) and are granted non-exclusive promotional and developmental rights to sell products and services anywhere in the U.S., except in certain limited areas with 'Existing Promotional and Developmental Rights' held by 15 franchisees as of December 31, 2022. Franchisees may face competition from other franchisees, company-owned outlets (though none currently exist), or other distribution channels controlled by the franchisor. The franchisor may also use alternative distribution channels like the Internet, catalogs, or telemarketing. Leads generated through the franchisor's website are forwarded to franchisees based on a rotation policy, but the franchisor retains ownership of all inquiries. Franchisees are required to achieve minimum annual gross sales of $40,000. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | additional 5-year terms |
| Renewal Conditions | Franchisee must conform business vehicle to current specifications, not be in default of any agreements, satisfy all monetary obligations, sign the then-current franchise agreement (which may have different terms and fees), execute a general release of claims (excluding certain state law claims in Maryland and Indiana), and comply with current training requirements. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisee must be in full compliance, proposed transferee must meet franchisor's standards (business experience, aptitude, financial resources, pass aptitude test), pay all sums owed to franchisor, agree to complete basic training (DDIU), acquire a suitable business vehicle, execute the then-current franchise agreement (which may have different terms and fees), pay a $10,000 transfer fee and potentially a $10,000 Resale Assistance Fee (waivable if franchisee generates lead), execute a general release of claims (excluding certain state law claims in Maryland), acknowledge confidentiality and non-compete covenants, and subordinate transferee's purchase price obligations to franchisor's fees. All customer lists and business records must be given to the franchisor. |
| Termination for Cause | Franchisor may terminate without opportunity to cure if franchisee becomes insolvent/bankrupt, abandons business (3 consecutive months without Gross Sales), is convicted of a felony or crime adversely affecting the brand, makes material misrepresentation or submits false reports, receives 3+ default notices in 12 months, transfers without consent, engages in prejudicial activity, fails to achieve $40,000 minimum annual gross sales, or fails to make a Promissory Note payment within 10 days of its due date. Curable defaults (e.g., failure to pay fees, submit reports, or comply with standards) typically allow 30 days to cure, or longer if required by applicable law. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, neither the franchisee nor its principals may own, operate, or have an interest in any similar home furnishing, office furnishing, or interior decorating business, or divert customers. Following termination or expiration, for a continuous uninterrupted period of two years, neither the franchisee nor its principals may directly or indirectly own, operate, or have an interest in any similar business within 50 miles of the Designated Location, or contact/solicit customers who were clients prior to termination within 50 miles of the Designated Location. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While direct personal involvement is not generally required, the franchisor relies on the franchisee's personal qualifications, financial ability, and active participation. If the franchisee cannot be directly active, a designated person must be primarily responsible for operations, successfully complete initial training (Onboarding, DDIU, and Practical Instruction), and is not required to own an interest in the entity if the franchisee is a legal entity. If the franchisee is a legal entity, all owners must personally guarantee performance and sign a Certification and Guaranty. A veteran spouse qualifying for the VetFran program must be directly and personally involved. |
| Required Suppliers | If you decide to place our logo on your business vehicle, you must order the decals for your vehicle from our approved supplier, Designer Decal. |
| Supply Restrictions | DDI Franchisees may order the Franchised Products and Services from any source of their choosing. If you order products and services from suppliers who are not Preferred Suppliers, the products and services must be of good quality and appropriate for the purpose to be used. DDSI may restrict DDI franchise owners from selling products and services that in DDSI’s reasonable opinion are not of good quality. |
| Franchisor Revenue from Suppliers | During our latest fiscal year, which ended December 31, 2022, we derived approximately $6,840 in revenue from franchisees’ purchases or leases from us. This represented about 001906% of our total revenue of $3,589,304. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | DDSI offers to finance up to $20,000 of the Initial Franchise Fee, based on demonstrated need, ability to pay, and fund availability. The maximum loan amount is $20,000, with a down payment of $19,900 for the standard fee. The loan term is up to 60 months at an 8% interest rate, resulting in monthly payments of $405.53. Reduced financing amounts are available for VetFran ($16,000), To The Trade ($10,000), and Educational Credit ($15,000) programs, with corresponding lower monthly payments. Interest accrues from the first day of the first full calendar month after DDIU completion or the sixth full calendar month after signing the agreement, whichever is earlier. Payments are made via automatic electronic debit. A personal guarantee is required, and default can lead to termination of the franchise agreement and acceleration of the loan balance. Borrowers waive objection to Maryland court venue, right to counterclaim, and jury trial (subject to state law). |
Decorating Den Interiors Franchise Earnings — Item 19
Decorating Den Interiors does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Decorating Den Interiors Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Decorating Den Interiors System Growth
Decorating Den Interiors currently operates 226 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 16 | 25 | 232 |
| 2021 | 29 | 26 | 235 |
| 2022 | 19 | 28 | 226 |
Transfers: 0 | Closures: 28
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Decorating Den Interiors Franchise — FAQ
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