What is included in the consolidated statements of Decorating Den Interiors?

According to Decorating Den Interiors' 2025 Franchise Disclosure Document, the consolidated financial statements include an independent auditor's report, consolidated balance sheets, consolidated statements of income and comprehensive income, consolidated statements of changes in stockholders' equity, consolidated statements of cash flow, and notes to the consolidated financial statements.

Specifically, the consolidated financial statements include the accounts of Decorating Den Systems, Inc., and its affiliated Trusts. These affiliated trusts are the Decorating Den Interiors National Brand Fund Trust (NBF) and the Decorating Den Merchandising Incentive Fund Trust (MIF). The NBF receives funds from franchisees for the promotion of the Decorating Den Interiors system through national and local marketing programs. The MIF administers contributions from Decorating Den Interiors' preferred suppliers in the form of cash rebates on products and services purchased by franchisees.

These consolidated statements are prepared following accounting principles generally accepted in the United States of America. All significant balances between these entities are eliminated during the consolidation process. The revenues and expenses of both the NBF and MIF are included within selling, general, and administrative expenses on the consolidated statements of income and comprehensive income.