What security is required for the Decorating Den Interiors financing?
Decorating_Den_Interiors Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Item Financed: Portion | on of Initial Franchise Fee |
|---|---|
| Late Installment Fee (10 days after due date) | $50 plus any collection costs |
| Security Required | Personal Guarantee |
| Liability on Default | Full amount of remaining principal and interest, late installment fees, plus our collection costs including attorney fees |
| Loss of Legal Right on Default | Waive objection to Maryland court venue; waive right to counterclaim; waive right to jury trial (subject to state law) |
| Other Default Consequences (Note 3) | Termination of Franchise Agreemen |
Source: Item 10 — Financing (FDD pages 28–32)
What This Means (2025 FDD)
According to Decorating Den Interiors' 2025 Franchise Disclosure Document, if Decorating Den Interiors provides financing for the initial franchise fee, the security required is a personal guarantee.
If a franchisee defaults on the loan, they are liable for the full amount of remaining principal and interest, late installment fees, plus Decorating Den Interiors' collection costs, including attorney fees. Furthermore, upon default, a franchisee waives objection to a Maryland court venue, the right to a counterclaim, and the right to a jury trial (subject to state law).
In addition to the financial and legal ramifications, another consequence of default is the termination of the Franchise Agreement, although this is subject to state law. This means a franchisee could lose their franchise if they fail to meet their financial obligations under the promissory note.