Franchising Since: 1970
Headquarters: Easton, Maryland
Estimated Number of Units: 200
Franchise Description: DDSI (Decorating Den Systems, Inc.) 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 the interior decoration of homes and businesses, including custom draperies, drapery hardware, decorative shades and other window treatments; accessories such as decorative pillows, lighting, mirrors, wall art and bathroom accessories; furniture, bed coverings, bedroom, dining room, home office, occasional, outdoor and upholstered furniture, mattresses, bookcases and entertainment consoles; fabric, wall coverings and floor coverings; other furnishing merchandise; customized closets, garage storage and other storage systems; interior decorating services; installation services; and related labor. Franchisees typically operate from a mobile, shop-at-home format.
Training Overview: The initial training program, referred to as Decorating Den Interiors University (DDIU), consists of five phases: onboarding, online instruction, virtual instruction, in-person instruction, and practical instruction. The training program consists of about 165 hours over 23 weeks. All new franchisees and any partners active in selling to customers must attend and successfully complete all training programs of DDIU to the franchisor’s satisfaction. In addition, the franchisor provides to franchisees ongoing periodic training and communications to update their skills, including training at its annual conferences and special seminars at locations it will determine. The location and frequency of the ongoing training services and communications described are at the discretion of the franchisor or the designated field mentor. Schools, online offerings, and class training may require incidental fees.
Territory Granted: Franchisees will operate their business from the designated location, which the franchisor will identify in the Franchise Agreement. In most cases, the designated location is the home of the franchisee. The franchisor does not grant exclusive territorial rights. The Franchise Agreement gives franchisees non-exclusive promotional and developmental rights to sell franchised products and services anywhere in the United States of America from their designated location, except in certain limited areas as the franchisor describes in the FDD.
Obligations and Restrictions: The franchisor 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. Otherwise, if franchisees cannot be directly active in the business, they must advise the franchisor as to the person primarily responsible for the operation of the franchised business. The franchisor 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 the franchisor 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.
Term of Agreement and Renewal: The length of the initial franchise term is five years. The agreement will renew for additional five-year terms unless the franchisee delivers notice not to renew at least three months before. Franchisees must be in good standing for renewal.
Financial Assistance: Under its financing program, the franchisor will consider financing up to $20,000 of the initial franchise fee. Decisions are made on a case-by-case basis. The franchisor will base its decision on the franchisee’s demonstrated need for financial assistance, its evaluation of the franchisee’s ability to pay the financing obligations, its availability of funds, and other factors that it deems pertinent. The franchisor does not offer direct or indirect financing except as described.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $39,900 | $39,900 |
| Business Vehicle (leased or financed for first 3 months) | $0 | $1,800 |
| Computer Hardware, Software and Internet Access | $105 | $2,500 |
| Technology Fee (first 3 months) | $300 | $300 |
| Professional Fees (Accountants, Lawyers, etc.) | $0 | $3,200 |
| Licenses | $0 | $600 |
| Opening Inventory of Business Materials | $500 | $800 |
| Advertising and Marketing (first 3 months) | $4,500 | $7,500 |
| Comprehensive General Liability and Vehicle Insurance (first 3 months) | $450 | $1,200 |
| Travel and Related Expenses for Initial Training | $1,500 | $3,600 |
| Additional Funds – 3 Months | $4,500 | $12,000 |
| ESTIMATED TOTAL | $51,755 | $73,400 |
Other Fees
| Type of Fee | Amount |
| Service Fees | Initially 9% of gross sales and may decrease down to 7% based upon the cumulative level of gross sales achieved. |
| National Brand Fund Contribution | 1% - 4% of gross sales or $100/month minimum. |
| Technology Fee | $100/month |
| 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 Fees | Varies (cost of audit ranges from $1,000 to $3,000). |
| Transfer Fee | $10,000 |
| Resale Assistance Fee | $10,000 |
| Annual Conference and Additional Training | $1,500 to $3,500 |
| Training Fee | $1,200 per additional person. |
| Cooperative Advertising | As determined by cooperative. |
| Samples | $500 to $3,000 per year. |
| Indemnification | Claims and costs incurred by the franchisor. |
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