Paint the frame using white craft paint. Roll on one side, let dry, and flip over. Paint other side and let dry.
Apply a coat of Mod Podge to the wood; don't do the edges. Let dry 15-20 minutes and repeat.
While the Mod Podge is drying, separate the napkin from the bottom layers. You can use tape to help. You just want the top layer with the design.
Place the napkin down onto the frame. Place a piece of parchment paper on top of the napkin, and run the craft iron across the top several times. While you are doing this, the Mod Podge is melting below the napkin, and the napkin is adhering. Keep going until the napkin is fully adhered, including the edges.
Let the frame cool after ironing. Use an emery board to gently sand away the excess napkin. Sanding at an angle works very well. Continue until all the extra napkin is removed.
Use craft glue to adhere the embellishments. Let dry completely before adding a photo and displaying.