What is the interest rate on the Decorating Den Interiors financing?
Decorating_Den_Interiors Franchise · 2025 FDDAnswer from 2025 FDD Document
MARY OF FINANCING OFFERED
| Item Financed: Portion | on of Initial Franchise Fee |
|---|---|
| Amount Financed (Note 1) | $20,000 (maximum) |
| Down Payment (Note 1) | $19,900 |
| Term (Note 2) | Up to 60 months |
| Interest Rate (Note 2) | 8% |
| Monthly Payment (Notes 1, 2) | $405.53 |
| P |
Source: Item 10 — Financing (FDD pages 28–32)
What This Means (2025 FDD)
According to Decorating Den Interiors's 2025 Franchise Disclosure Document, the interest rate for financing the initial franchise fee is 8%. This rate applies to the maximum financed amount of $20,000, as well as to the reduced amounts offered under the VetFran, To The Trade, and Educational Credit programs. The interest rate remains constant over the life of the promissory note.
For a franchisee financing the maximum amount of $20,000, the monthly payment will be $405.63, resulting in a total repayment of $24,331.62 over 60 months. If a franchisee borrows less than $20,000, the monthly payment will be proportionately lower but will not be less than $200. For example, under the VetFran program where $16,000 is financed, the monthly payment is $324.42 with a total repayment of $19,465.20 over 60 months.
The promissory note accrues interest starting from the earlier of either the first day of the first full calendar month after completing Decorating Den Interiors University (DDIU) or the first day of the sixth full calendar month after signing the Franchise Agreement. Franchisees can prepay the promissory note at any time without incurring a penalty. However, failure to make payments within 10 days of the due date may result in termination of the Franchise Agreement and immediate demand for the entire remaining balance of principal and interest.