Decorating Den Interiors Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$54,000

-

$70,000

LOCATIONS

222

Adam

Updated

May 2, 2024

Is

Decorating Den Interiors

a franchise?

Yes,
Decorating Den Interiors
currently
accepts
franchise
applications

Decorating Den Interiors, established in 1969 and beginning franchising a year later in 1970, has developed into a prominent name in the interior design and decorating industry. The franchise is headquartered in Easton, Maryland,.

The franchise model of Decorating Den Interiors is designed to provide a comprehensive "turn-key" business system, complete with tools, training, and support to either start or enhance an Interior Design Business. This opportunity is catered towards individuals with a passion for design, offering them the chance to turn this passion into a profitable business venture. 

Whether you're coming from a design background or looking to shift careers, Decorating Den Interiors offers a structured pathway to business ownership in the design space, backed by decades of experience and a proven business model​​​​.

The franchise offers extensive training and support in various aspects of running a design business, including professional training, business management, mentorship, coaching, access to a wholesale buying network, and marketing support. This comprehensive support system is designed to ensure that franchisees are well-equipped to meet their business goals and outshine the competition​​.

How many

Decorating Den Interiors

franchises

are there?

In 2022, there were
222
outlets in
the United
States, of which
222
are franchises, and
0
are corporate-owned.

What are the

Decorating Den Interiors

franchise

fees?

Royalty fee

7% to 9%

Advertising fee

4.00%

Initial Franchise Fee

The Initial Franchise Fee is $34,900, which is payable as set forth in section 3.2 of the Franchise Agreement.

Service Fees

Service Fees range from 9% to 7% of Gross Sales, due on the 15th and last day of the month. The fee initially is 9% of Gross Sales and may decrease based on the cumulative level of Gross Sales achieved.

National Brand Fund Contribution

The National Brand Fund Contribution is 4% of Gross Sales or a $100/month minimum, due on the 15th and last day of the month.

Technology Fee

The Technology Fee is $100/month, due on the 1st day of each month. This fee may change on 30 days' prior notice after January 1, 2023.

Insufficient Funds Fee

The Insufficient Funds Fee is $25 for each payment returned due to insufficient funds, payable as incurred.

Interest

Interest is charged at 1.5% per month, or as incurred, imposed if fees are not paid timely.

Transfer Fee

The Transfer Fee is $10,000 to cover expenses incurred by DDSI and the Regional Director in connection with the training provided to the transferee and the transfer and administrative costs. An additional Resale Assistance Fee of $10,000 may apply for expenses incurred in connection with promotion, advertising, and sales representation by a DDSI franchise sales person in connection with the transfer.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Decorating Den Interiors

franchise?

It costs between
$54,000
and
$70,000
to start a
Decorating Den Interiors
franchise.
Type of Expenditure Amount
Initial Franchise Fee $39,900
Business vehicle leased or financed $0 - $1,800 for first 3 months
Computer Hardware, Software and Internet Access $1,075 - $2,500
Technology Fee $300 for 1st 3 months
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 for 1st 3 months
Travel and Related Expenses for initial training $2,588 - $3,600
Additional Funds -- 3 Months $4,500 - $10,500
Total Estimated Initial Investment $53,813 - $70,400

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Decorating Den Interiors

provide

training

to its

franchisees?

Yes,
Decorating Den Interiors
provides
training

The franchisor provides a comprehensive training program for franchisees, which includes:

  1. Franchise Owner Policy and Procedure Manual: Franchisees receive a manual that covers various operational policies and procedures.
  2. Initial Training: This training is conducted at the franchisor's headquarters in Easton, Maryland, or another designated location. It covers initial setup, operations, and other essential aspects of running the franchise.
  3. Initial Samples: Franchisees are provided with an initial supply of product samples, catalogs, and brochures to help them start their business.
  4. Advertising and Marketing Programs: The franchisor offers planning and programs for advertising and marketing, including promotional materials and guidance on their use.
  5. Preferred Supplier Accounts: Assistance is provided to franchisees in opening accounts with selected suppliers preferred by the franchisor.
  6. Local Website: A website promoting the franchised business is provided to each franchisee.
  7. Ongoing Training: Periodic ongoing training and communications are provided to ensure franchisees are up-to-date with the latest operational practices and industry trends.
  8. Technology Support: Training and support are offered for using the franchisor's technology systems, including any proprietary software that may be required or permitted for use by the franchisee.

Does

Decorating Den Interiors

provides

territory

protection?

The franchisor does not grant exclusive territorial rights to franchisees. According to the Franchise Agreement, franchisees are given non-exclusive promotional and developmental rights to sell Franchised Products and Services from their designated location anywhere in the United States, with some exceptions in certain limited areas. 

This means that franchisees may face competition from other franchisees, outlets owned by the franchisor, or other channels of distribution or competitive brands controlled by the franchisor. 

Previously, some franchisees were granted exclusive promotional and developmental rights within defined geographical territories, but as of December 31, 2022, only 15 franchisees retained these exclusive rights. New franchisees are expected to respect these existing promotional and developmental rights​​​​.

Can a

Decorating Den Interiors

franchise

be run as

a passive

investment?

The franchisor does not generally require franchisees to be directly and personally involved in or to provide direct supervision of the franchise business. However, there are exceptions, such as for franchisees or their veteran spouses who qualify under the VetFran program for a reduced initial franchise fee. In such cases, they must be directly and personally involved in the actual operation of the franchised business. 

Additionally, if a franchisee cannot be directly active in the business, they must designate a person primarily responsible for the operation of the franchised business.

This person must then participate in and successfully complete the initial training, including Onboarding, DDIU (Decorating Den Interiors University), and Practical Instruction. The franchisor expects active participation in the ownership and operation of the franchised business from the franchisee or the designated responsible person​​​​.

Related Posts