Decorating Den System Franchise Cost & 2026 FDD Data
59/100
Second tier
59 this brand56 Home Services medianlikely 53–65: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,100 of 3,068 graded brands
Why a B: Helped by scale and legal record. Held back by unit growth and transparency. See all six factors
- Total investment
- $52K – $73K
- Avg gross sales
- not disclosed
- SBA charge-off
- 7.7%
1 in 13 SBA 7(a) loans to Decorating Den System owners charged off (2 of 26 resolved loans, approved FY1993 to FY2003); Home Services median 17.8%.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Decorating Den System franchise requires a total initial investment of $52K – $73K, including a $40K franchise fee. Once open, the ongoing royalty is 9.0%. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the verdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 7.7% charge-off rate on 26 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
Quick verdict · vs Home Services median
Top edge: green = better than the Home Services median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSThe FDD makes no financial performance representation in Item 19, so it discloses no revenue or earnings figures; Item 19 is voluntary, and the Financial performance section explains what that does and does not mean.
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 9 (16 opened, 25 closed).
- FLAG12 units terminated last reporting year (5.7% of the franchised outlets open at the start of that year). Ask existing franchisees why.
AT STAKEOne unit at the Item 7 midpoint: $8K a year in payments on assumed SBA 7(a)-style terms.You put in about $13K of your own cash and personally guarantee a $50K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- Net -9 franchised outlets in the latest Item 20 year. Ask owners why outlets closed.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- An owner must run the business personally (Item 15, owner participation). Ask whether a trained manager can ever stand in.
Checked and clear: no auditor doubt that the franchisor can keep operating, no lawsuit naming the franchisor in Item 3, SBA charge-off rate 7.7%, below the 17.8% category median and the full filing on file. Not on file here, so ask: supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 62% below the Home Services median ($164K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Decorating Den Systems, Inc. (Item 1: 8659 Commerce Drive, Easton, MD 21601) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $39.9K | $39.9K | |
| Furniture, Fixtures and Equipment - Business vehicle leased or financed (first 3 months) | $0 | $1.8K | |
| Furniture, Fixtures and Equipment - Computer Hardware, Software and Internet Access | $105 | $2.5K | |
| Technology Fee (1st 3 months) | $300 | $300 | |
| Professional Fees (Accountants, Lawyers, etc.) | $0 | $3.2K | |
| Licenses | $0 | $600 | |
| Opening Inventory of Business Materials | $500 | $800 | |
| Advertising and Marketing First Three Months | $4.5K | $7.5K | |
| Comprehensive General Liability and Vehicle Insurance (1st 3 months) | $450 | $1.2K | |
| Travel and Related Expenses for initial training | $1.5K | $3.6K | |
| Additional Funds - 3 Months | $4.5K | $12K | |
| Total initial investment | $52K | $73K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7; the lines above add to $51,755 to $73,400, $100 at most from the printed total, which is the figure shown. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| Marketing / ad fundBrand-wide marketing pool. National Brand Fund Contribution: 4% of Gross Sales on $0-$200,000; 3% on $200,000.01-$300,000; 1% over $300,000; $100/month minimum | 4.0% of gross sales |
| Technology feeTechnology Fee of $100/month for proprietary B.O.S.S. system (lead management, marketing, project management, communications); may be changed on 30 days' notice | $100/month |
| Transfer fee | $10,000 |
| Renewal fee | $0 |
| Total fee loadabove the Home Services median of 8.0% (heavy) | 13.0% of sales |
What do units actually make?
This FDD makes no Item 19 financial performance representation - a voluntary item - so unit sales aren't disclosed.
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Decorating Den System unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $63K Item 7 midpoint is a $50K loan, paid over 10 years at 10.5%: $8K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Decorating Den System's past SBA 7(a) loans averaged 9.1% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $13K Assumption (the part the loan does not cover of the $63K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $50K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
Decorating Den System makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no gross sales figures are disclosed. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Decorating Den System unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
No Item 19 figures are on file for this brand. Enter your own costs from a lease quote, a payroll plan and calls with current owners.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $52K to $73K
Item 7's $5K to $12K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $50K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Decorating Den Systems, Inc.
Financial performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the verdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
vs Home Services medians
How Decorating Den System compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Decorating Den Systems, Inc.
Same franchisor, other program: Decorating Den Interiors. Each is a separate offering with its own page.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Decorating Den Systems, Inc.
- Predecessor
- International Drapery Fashions, Inc. (later American Drapery Consultants, Inc.)
- Prior franchisor entity
- CEO title
- President
- James Bugg, Jr.
- Incorporated in
- Missouri
- HQ
- 8659 Commerce Drive, Easton, MD 21601
Overview
About
Home-based retail marketing and sale of interior decoration products and services for homes and businesses, including custom draperies, window treatments, accessories, lighting, and related design services, under the DECORATING DEN INTERIORS System.
- CEO
- James Bugg, Jr.
Is the system healthy?
-20 franchised outlets between the first and last year-ends Item 20 prints (222 to 202, -9.0% in total, -4.6% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 20
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units fell from 222 in 2023 to 202 in 2025
Axis does not start at zero.
Source and method
Government records
SBA loan data
Lenders charged off 7.7% of 26 resolved SBA 7(a) loans, below the 17.8% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 26
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $1.1M
- Average loan
- $40K
- loan volume divided by loans
- Charge-off rate
- 7.7%
- 2 of 26 resolved loans
- Paid in full
- 92.3%
- of resolved loans
- Recent-loan charge-off
- No recent loans
- no SBA 7(a) loan approved since FY2012
- Lenders
- 17
- Average interest rate
- 9.1%
- Jobs reported
- 19
- on the 8 loans approved FY2003 on; earlier loans did not record jobs
- Lender concentration
- 15%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Home Services brand charges off 17.8% (66 brands with a published rate, same cumulative window and source). This brand is 10.1 points below it.
The approval-year breakdown covers 17 of the 26 resolved loans and 2 of the 2 charge-offs (FY1993 to FY2003).
SBA 7(a) · charge-off rate by approval year
Decorating Den System charge-off rate by loan approval year
None of these 4 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1993 | 3 | 1 | Too few |
| 1995 | 5 | 1 | Too few |
| 1997 | 5 | 0 | Too few |
| 2003 | 4 | 0 | Too few |
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Decorating Den System from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 76%
- Average interest rate
- 9.1%
- Lender concentration
- 15%
- Jobs reported
- 19
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Bank of America, National Association | ||
| 4 | $110K | Not on file |
| PNC Bank, National Association | ||
| 4 | $170K | Not on file |
| Wells Fargo Bank National Association | ||
| 2 | $111K | Not on file |
| JPMorgan Chase Bank, National Association | ||
| 2 | $48K | Not on file |
| Citizens Bank, National Association | ||
| 2 | $40K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| MA Massachusetts | 4 | 0 | Too few4 resolved |
| NC North Carolina | 4 | 1 | Too few4 resolved |
| IN Indiana | 2 | 0 | Too few2 resolved |
| MO Missouri | 2 | 0 | Too few2 resolved |
| OH Ohio | 2 | 0 | Too few2 resolved |
| FL Florida | 1 | 0 | Too few1 resolved |
| GA Georgia | 1 | 0 | Too few1 resolved |
| IA Iowa | 1 | 1 | Too few1 resolved |
| IL Illinois | 1 | 0 | Too few1 resolved |
| KS Kansas | 1 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 222 to 202 over the two Item 20 years.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 59/100 (category median 56); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Weighs on it, weakest dimension-20 franchised outlets between the first and last year-ends Item 20 prints (222 to 202, -9.0% in total, -4.6% a year compounded); turnover 12.4%
- Scale Helps202 franchised units; franchising since 1970
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency Weighs on itItem 19 declines to disclose financial performance; audited financials; no franchisor financial figures on file
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
What are you signing up for?
Ongoing fees run about 13.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | No |
|---|---|
| Exclusive territory | No |
| Online sales rights | Reserved by franchisor |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | Owner must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 50 mi |
| Right of first refusal | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Talbot County, Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 165 hrs
- On-the-job training
- 0 hrs
- Training location
- Online/Virtual from Franchisee Location and in-person at Easton, Maryland
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- B.O.S.S.
- Operating tech stack
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Decorating Den System franchise?
Per the 2026 FDD, the total investment to open a Decorating Den System franchise ranges from $52K to $73K, with an initial franchise fee of $40K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Decorating Den System franchise owners earn?
Decorating Den System makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no gross sales figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the verdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Decorating Den System?
Decorating Den System is franchised by Decorating Den Systems, Inc. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Decorating Den System FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. The Decorating Den System FDD does not make an Item 19 financial performance representation, so this page shows no earnings figure.
What is Decorating Den System's franchise failure rate?
There is no published franchise failure rate. What is measurable is Decorating Den System's SBA charge-off rate: 7.7% on 26 resolved loans approved FY1993 to FY2003. Put plainly: 1 in 13 SBA 7(a) loans to Decorating Den System owners charged off (2 of 26 resolved loans, approved FY1993 to FY2003). The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Decorating Den System franchise locations are there?
Per the 2026 FDD, Decorating Den System has 202 franchised units and 0 company-owned (202 in all). In the latest year, the number of franchised outlets fell by 9 (16 opened, 25 closed).
Is Decorating Den System a good franchise to buy?
FranchiseVerdict gives Decorating Den System a B Verdict grade (Second tier) with a verdict score of 59 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by scale and legal record. Held back by unit growth (-20 franchised outlets between the first and last year-ends Item 20 prints: 222 to 202, -9.0% in total, -4.6% a year compounded) and transparency (Item 19 declines to disclose financial performance). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Home Services franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.