Decorating Den System Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Decorating Den System franchise requires a total initial investment of $52K – $73K, including a $40K franchise fee. The latest FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 7.7% charge-off rate across 26 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified
Overview
- Investment
- $52K – $73K
- 8th pct Home Services
- Avg gross sales
- N/A
- 53rd pct Home Services
- Royalty
- N/A
- Units
- 202
- 69th pct Home Services
- SBA charge-off
- 7.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $52K – $73K including a $40K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Strongest tier), verdict score 63/100 (higher is better). SBA loan charge-off rate of 7.7% across 26 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System contracting at -9.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · 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.
- Headquarters
- Maryland
- Founded
- 1969
Can you afford it, and what does the money buy?
Entry cost runs 72% below the typical home services franchise.
Source: FDD · Items 5–7
FDD Item 7
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $5K | $12K |
| Equipment, build-out, other | $7K | $21K |
| Total initial investment | $52K | $73K |
Source: Decorating Den System FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $52K – $73K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $12K
- Top 40% of category vs category
- Franchise fee
- $40K
- Top 40% of category vs category
- Royalty
- Service Fee: 9% of cumulative Gross Sales on $0-$1,000,00…
- Ad fund
- 4.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Inventory (initial) | $500 – $800 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -9.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How Decorating Den System Compares
Is the system healthy?
Source: FDD · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 202
- Opened
- 0
- Last reporting year
- Closed
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -9.0%
- Net unit change over 3 years
- 3-yr CAGR
- -9.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 26
- Loan volume
- $1.1M
- Median loan
- $35K
- 50th percentile
- Charge-off rate
- 7.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 92.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 17
- Defaults
- 2
- Typical loan rate
- 9.1%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 5414
- Jobs supported
- 19
- 1.8 per loan
- Lender concentration
- 15%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Decorating Den System charge-off rate by loan vintage
Top lenders financing Decorating Den System franchisees
Showing 3 of 17 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans charge off at 7.7% — 52% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
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?
Source: FDD · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Talbot County, Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & 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
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Decorating Den System franchise?
The total investment to open a Decorating Den System franchise ranges from $52K – $73K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Decorating Den System franchise owners earn?
Decorating Den System does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Decorating Den System's franchise failure rate?
Based on SBA 7(a) loan data, Decorating Den System has a charge-off rate of 7.7% across 26 loans, meaning 7.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Decorating Den System franchise locations are there?
As of their most recent FDD filing, Decorating Den System has 202 total units in the United States, including 202 franchised units and 0 company-owned units.
Is Decorating Den System a good franchise to buy?
FranchiseVerdict rates Decorating Den System as a A-grade franchise with a verdict score of 63 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Decorating Den System, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.