Tempur-Pedic Franchise FDD, Profits & Costs (2025)
Tempur-Pedic was established in 1992 by Bobby Trussell and quickly revolutionized the sleep industry through its innovative use of viscoelastic foam. Based in Lexington, Kentucky, the brand has become synonymous with premium mattresses and pillows designed to deliver exceptional comfort, pressure relief, and support.
In 2018, Tempur-Pedic expanded into franchising, giving entrepreneurs the chance to open branded retail stores. These locations focus on providing customers with luxury sleep products and a consistent, high-quality shopping experience.
A key differentiator for Tempur-Pedic is its emphasis on research-driven innovation. Its proprietary TEMPUR® material, adapted from NASA technology originally created to protect astronauts, responds to body weight, shape, and temperature.
Initial Investment
How much does it cost to start a Tempur-Pedic franchise? It costs on average between $953,000 – $1,653,000 to start a Tempur-Pedic franchised facility.
This includes expenses for store construction, showroom equipment, initial inventory, and opening operating costs. The total investment varies depending on factors such as the size and layout of the retail store, its location, and whether the franchisee decides to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $75,000 |
| Travel Expenses to Attend Training | $1,000 to $5,000 |
| Rent for First 3 Months | $60,000 to $75,000 |
| Architect Fees | $15,000 to $30,000 |
| Leasehold Improvements | $450,000 to $650,000 |
| General Contractor Service Fee | $20,000 to $30,000 |
| Sourcing and Materials | $50,000 to $100,000 |
| Interior Design and Merchandising | $7,000 to $24,000 |
| Fixture Package | $40,000 to $120,000 |
| Initial Inventory | $50,000 to $100,000 |
| Marketing Supplies | $10,000 to $30,000 |
| Computer Hardware, Software, and POS System | $50,000 to $80,000 |
| Initial IT Setup | $12,000 to $14,000 |
| Insurance | $12,000 to $50,000 |
| Licenses, Permits | $1,000 to $15,000 |
| Legal & Accounting | $10,000 to $30,000 |
| Miscellaneous Opening Costs | $5,000 to $25,000 |
| Additional Funds – 3 Months | $85,000 to $200,000 |
| TOTAL | $953,000 to $1,653,000 |
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Frequently Asked Questions
How many Tempur-Pedic locations are there?
As of the latest available data, Tempur-Pedic has approximately 114 company-owned retail stores in the United States.
What is the total investment required to open a Tempur-Pedic franchise?
The total investment required to open a Tempur-Pedic franchise ranges from $953,000 to $1,653,000.
What are the ongoing fees for a Tempur-Pedic franchise?
The ongoing fees for a Tempur-Pedic franchise include a royalty fee of 6% of gross sales. In addition, franchisees are required to contribute about 2% of gross sales toward marketing and advertising.
What are the financial requirements to become a Tempur-Pedic franchisee?
To qualify as a Tempur-Pedic franchisee, you need to have at least $350,000 in liquid capital.
Who owns Tempur-Pedic?
The Tempur-Pedic franchise is owned by Tempur Sealy International, Inc., a leading global bedding company that designs, manufactures, and distributes mattresses, pillows, and sleep products under the Tempur-Pedic, Sealy, Stearns & Foster, and other brands.
Disclaimer
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