Decorating Den Interiors Franchise Costs & Fees
Date of Incorporation: 1969
Franchising Since: 1970
Headquarters: Easton, Maryland
Business Description: Decorating Den Systems, Inc. (DDSI) is the franchisor. The Decorating Den Interiors franchise involves the retail marketing and sale of a wide range of products and services sold in connection with interior decoration of homes and businesses, including custom draperies, drapery hardware, decorative shades and other window treatments, and related labor, accessories such as decorative pillows; lighting; lighting shades; mirrors; wall art; bathroom accessories; furniture and lighting; bed coverings; bed room furniture; bookcases and entertainment consoles; dining room furniture; home office furniture; mattresses; occasional/accent furniture; outdoor furniture; upholstered furniture; fabric; wall coverings; floor coverings; other furnishing merchandise; interior decorating services; installation services; and labor used in the home or in businesses.
Franchise Offer: Franchisees will operate an interior decorating business using the “Decorating Den Interiors System.”
Financial Assistance: Under its financing program, DDSI offers financing of up to $15,000 of the Initial Franchise Fee only to financially qualified prospective DDI Franchisees, subject to approval of the Regional Director, if any, for the franchisee’s region. DDSI may suspend this financing program at any time. Except as described, DDSI does not offer direct or indirect financing.
Training and Assistance: The initial training program consists of 2 parts: a self-study program referred to as “Ready Set Go”, and a program at DDSI headquarters in Easton, Maryland referred to as the Professional Design and Sales School (PDSS). The “Ready Set Go” manual prepares franchisees for PDSS. Franchisees must complete it before attending PDSS. PDSS is a comprehensive introductory training program for new franchisees. It features intensive classroom seminars, covering four basic areas – Product Knowledge, Lifestyle Design, Sales and Marketing, and Business Management. It lasts approximately 10 business days with 82 hours of instruction. When franchisees finish PDSS, DDSI provides franchisees with a manual called “Directions.” It is a 12-week self-paced program with each module focusing on knowledge, skills, and attitudes necessary to get a franchised business started in the right direction. The franchisee’s Field Manager offers Directions classes on a no-charge basis, exclusive of the franchisee’s own travel, lodging, and living expenses while attending, or franchisees may complete this on their own. In addition, DDSI provides to franchisees periodic training and communications to update their skills, including training at the annual conventions and special seminars at locations it will determine.
Territory: Franchisees will operate their business from the Designated Location, which DDSI will identify in the Franchise Agreement. In most cases, the Designated Location is the home of the franchisee. DDSI does not grant exclusive territorial rights.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The agreement will renew for additional 10-year terms unless the franchisee delivers notice not to renew at least 7 months before. Franchisees must be in good standing for renewal.
Obligations and Restrictions: DDSI does not require franchisees to be directly and personally involved in or to provide direct supervision of the franchise business, unless franchisees qualify under the franchisor’s VetFran program for the reduced initial franchise fee. If franchisees do qualify under the VetFran program, they must be directly and personally involved in the actual operation of the franchised business. If the franchisee cannot be directly active in the business, he or she must advise DDSI as to the person primarily responsible for the operation of the franchised business. DDSI will then expect to conduct all business, training, and supervision with that person as if he or she were, in fact, the franchisee. Franchisees must offer for sale in their business only those products and services that DDSI considers consistent with and beneficial to the proper operation of a Decorating Den Interiors franchised business. Franchisees may not sell or offer for sale Franchised Products or Services for which they lack sufficient skill and knowledge to provide the high level of service associated with the DDSI marks.
Estimated Number of Units: 270
|Name of Fee||Low||High|
|Initial Franchise Fee||$39,900||$39,900|
|ColorVan Vehicle (leased or financed for first 3 months)||$960||$5,000|
|Vehicle Decals and Installation||$333||$700|
|Computer Equipment and Internet Access (approximate)||$1,000||$2,600|
|Professional Fees (Accountants, Lawyers, etc.)||$0||$3,200|
|Opening Inventory of Business Materials||$500||$800|
|Advertising and Grand Opening Event||$4,500||$6,500|
|Comprehensive General Liability and Vehicle Insurance (for 3 months)||$450||$1,100|
|Additional Funds (3 months)||$6,400||$20,000|
|Type of Fee||Amount|
|Service Fees||7% - 9% of Gross Sales.|
|National Brand Fund Contribution||4% of Gross Sales or $100/month minimum.|
|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 the franchisee does not file on time.|
|Audit||Varies (cost of audit ranges from $1,000 to $3,000)|
|Resale Assistance Fee||$10,000|
|Training Fee||$1,200 per additional person.|
|Cooperative Advertising||As determined by cooperative.|
|Samples||$1,200 to $2,500 per year.|
|Indemnification||Claims and costs incurred by DDSI.|
|Participation in Central Telephone Service||The franchisee’s proportionate share.|
The above information has been taken from the FDD of Decorating Den Interiors. Year of FDD: 2016
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