Decorating Den Interiors Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$52,725 - $73,400
Franchise Fee
$29,900
Total US Locations
211
Business Summary
Decorating Den Interiors offers a mobile, shop-at-home interior decorating service for homes and businesses. Decorating Den Interiors franchisees market and sell a wide range of products and services, including custom draperies, window treatments, accessories, lighting, mirrors, wall art, furniture, fabrics, wall and floor coverings, and customized storage systems. These services also include interior decorating and installation. Decorating Den Interiors franchisees generally make sales appointments at the customer's location, operating primarily from home offices without needing to invest in large inventory or commercial showrooms, as sales are typically made using samples and catalogs.
Corporate History
Decorating Den Systems, Inc. was founded in 1969 in Missouri as International Drapery Fashions, Inc., later changing its name to American Drapery Consultants, Inc. in 1971, and then to Decorating Den Systems, Inc. in 1978. The company began franchising a custom drapery business under the name "Aero Drapery" in March 1970. In 1974, the brand evolved to "Decorating Den" and expanded into offering a broader range of interior decorating products and services. In April 2008, the trade name was updated to "DECORATING DEN INTERIORS". Over the years, Decorating Den Systems, Inc. also experimented with various franchise programs and direct sales initiatives, such as LIVV INTERIOR DESIGNS and LIVV! Accents, which were later discontinued.
Financial Overview
Investment Range
$52,725 - $73,400
Franchise Fee (Low)
$29,900
Franchise Fee (High)
$39,900
Royalty %
9%
Marketing %
4%
Equipment Costs (Low)
$1,075
Equipment Costs (High)
$4,300
Working Capital
$8,250
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Decorating Den Systems, Inc. has consistently maintained positive working capital over the last three fiscal years, indicating it has sufficient current assets to cover current liabilities. However, the company reported net losses in fiscal years 2023 and 2024, after a net income in 2022. The independent auditors provided an unqualified opinion on the financial statements, and no concerns about the company's ability to continue as a going concern were noted. The company's cash balances have at times exceeded insured limits, suggesting a robust cash position. A prior period restatement for 2022 financial statements decreased reported net income and retained earnings for that year due to changes in recognizing sales contributions.
Financing Details
Decorating Den Systems, Inc. offers limited direct financing for a portion of the Initial Franchise Fee, up to a maximum of $20,000, for qualified franchisees. The amount offered depends on the franchisee's financial need and qualifications, and the program can be suspended at any time. For the standard franchise, a maximum of $20,000 of the Initial Franchise Fee can be financed; this amount is lower for discounted programs such as VetFran ($16,000), To The Trade ($10,000), and Educational Credit ($15,000). This financing is structured as a Promissory Note with an 8% interest rate, repaid in up to 60 equal monthly installments. For a $20,000 loan, the monthly payment is $405.63. Payments begin after completing the Decorating Den Interiors University (DDIU) training or the seventh full calendar month after signing the agreement, whichever comes first, although interest accrues earlier. A personal guarantee is required. Defaulting on payments may lead to a $50 late fee, acceleration of the entire loan balance, waiver of certain legal rights in Maryland courts, and potential termination of the franchise agreement.
Performance Metrics
Total US Locations
211
Franchised Units
211
Corporate Units
0
Franchising Since
1970
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Decorating Den Systems, Inc. has disclosed one litigation case. This case, filed in March 2023, involved a lawsuit against a franchisee and Decorating Den Systems, Inc. The plaintiffs alleged fraud, misrepresentation, breach of contract, and negligence regarding interior design services provided by the franchisee. Decorating Den Systems, Inc. was specifically accused of negligence for failing to inspect the franchisee's work and adequately train and monitor them, which Decorating Den Systems, Inc. denied. The case was settled and dismissed in November 2024, with Decorating Den Systems, Inc. contributing $5,000 to the total $112,000 settlement without admitting liability.
Bankruptcy History
Decorating Den Systems, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Decorating Den Interiors franchise, franchisees must notify the franchisor of their intent not to renew at least three months before the current term expires. Franchisees must be in good standing, meaning they are not in default of any agreements and have met all financial obligations. They also need to ensure their business vehicle meets the franchisor's current specifications. Franchisees will be required to sign the then-current franchise agreement, which may have different terms and conditions, though no renewal fee is charged. Additionally, they must sign a general release of any claims against the franchisor and comply with all current training requirements.
Training & Support Program
Franchisor Assistance
Decorating Den Systems, Inc. provides comprehensive assistance to its franchisees. Before opening, Decorating Den Interiors offers a Policy and Procedure Manual, mandatory initial training at Decorating Den Interiors University (DDIU) covering decorating, marketing, operations, management, and finance, initial product samples, and advertising planning. The franchisor also helps franchisees open accounts with Preferred Suppliers, provides a local website, an email address, and licenses and trains them on the proprietary B.O.S.S. technology system. After opening, Decorating Den Interiors provides ongoing operational support through its employees or designated Field Mentors, updates to the Policy and Procedure Manual, and periodic training and communications. Franchisees also receive advertising assistance, including planning and programs for promotional materials. Additionally, Decorating Den Systems, Inc. may, at its discretion, offer services such as advertising evaluations, assistance with sample selection and grand openings, sales reports, corporate and marketing communications, buying and merchandising services, social media assistance, and creative development for promotional pieces.
Initial Training Hours
165
Training Location
Easton, Maryland
Ongoing Support
Decorating Den Systems, Inc. offers a variety of ongoing support services to its franchisees after they open. This includes operational assistance provided by employees or Field Mentors, and regular updates to the Franchise Owner Policy and Procedure Manual. Franchisees also receive periodic ongoing training and communications, including voluntary continuing education courses in sales, marketing, product knowledge, design, and business management offered at regional centers, online, and at the annual Lifestyle Conference. The franchisor provides advertising assistance with planning and promotional materials. Additionally, Decorating Den Systems, Inc. may, at its discretion, offer other services such as advertising evaluations, continuous communications like sales reports and market information, corporate and marketing counseling, buying and merchandising services, social media assistance, and creative development for promotional pieces.
Franchise Requirements
Ideal Candidate Profile
Decorating Den Systems, Inc. seeks candidates with an aptitude for business and the financial ability to meet their obligations. The franchisor offers discounted initial fees for veterans, existing window covering or interior decorating/design business owners who generated over $100,000 in gross sales, or professional members of ASID, as well as applicants with a 2- or 4-year degree in interior design or a related field. While direct personal involvement in the business is not generally required, those who qualify for the VetFran program must be directly and personally involved in the actual operation of their Decorating Den Interiors franchised business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Decorating Den Systems, Inc. grants franchisees non-exclusive promotional and developmental rights to sell products and services anywhere in the United States from their designated home-based location, except for certain limited areas with existing exclusive rights. When approving a franchisee's proposed designated location, Decorating Den Systems, Inc. considers the population and the number of "qualified households" (those with a median household income at or above 150% of the county's median) within that county, and whether the proposed location falls within an existing exclusive territory.
Staffing Notes
Decorating Den Systems, Inc. requires that any partners, employees, or independent contractors involved in selling to customers within a Decorating Den Interiors franchised business must participate in and successfully complete all required training programs. Franchisees are responsible for ensuring their personnel meet these training standards. The franchisor encourages the use of decorators and other personnel to assist in the business, but does not specify a typical staff count or required roles.