Bottom line
- Total investment $53K – $73K including a $40K franchise fee, 9.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 31 loans (below the industry average).
- System contracting at -6.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one DECORATING DEN INTERIORS unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Overview
About
DDSI franchisees operate as independent interior design consultants, meeting with residential clients to design living spaces, select furnishings, and manage project completion. Day-to-day work involves client consultations, design proposals, vendor coordination, and project oversight—typically working from home or a small design studio with a 9% (scaling to 7%) royalty payable on all gross sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Decorating Den Interiors presents material risk: a contracting system with no financial transparency, unprotected territory, litigation history over service delivery, and aggressive royalty structure on an unproven profit model.
Score breakdown · what drove the 56 / 100 rating
- 01MINORDeclining unit count (-5.0% YoY) indicates shrinking franchise system and potential market saturation or franchisee dissatisfaction
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents accurate ROI assessment on $52,725–$73,400 investment
- 03HIGHRecent litigation (2023) with $112,000 settlement over service delivery failures raises quality control and customer satisfaction concerns
- 04MINORUnprotected territory creates direct competition risk from other DDSI franchisees and non-franchised interior designers
- 05MEDHigh royalty burden (9%–7%) combined with undisclosed profitability means franchisees may struggle to achieve positive cash flow
- 06MINORShort 5-year franchise term limits ability to recoup initial $39,900 franchise fee and build long-term equity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
DECORATING DEN INTERIORS · FDD (2025) PDF