BoxDrop Franchise FDD, Profits & Costs (2025)
BoxDrop is a rapidly expanding franchise specializing in the sale of high-quality mattresses and furniture at discounted prices. Founded in 2011, the company has grown to over 400 locations across 46 states in the United States. Headquartered in Dublin, Ohio, BoxDrop began franchising in 2015.
The franchise offers a unique business model that allows owners to sell top-brand mattresses and furniture at 30-70% off traditional retail prices. This approach is achieved through a clearance center model, low overhead costs, and a focus on customer satisfaction, resulting in an average Google rating of 4.9.
BoxDrop differentiates itself from competitors by eliminating royalty fees, providing low startup costs, and offering a flexible work-life balance for franchise owners. The company also provides comprehensive training and ongoing support to ensure the success of its franchisees.
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Initial Investment
How much does it cost to start a BoxDrop franchise? It costs on average between $67,000 – $202,000 to start a BoxDrop franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the size of the showroom, the location, and whether the franchisee chooses to lease or purchase the property. BoxDrop offers 2 types of franchises:
| Business Type | Initial Investment |
|---|---|
| New Mattress Only BoxDrop Business | $67,000 to $115,900 |
| New Mattress and Sofa BoxDrop Business | $126,000 to $202,400 |
We are summarizing below the main costs associated with opening a New Mattress and Sofa BoxDrop franchised Business. For more information on costs required to start a BoxDrop franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Est. Low Range – High Range) |
|---|---|
| Initial Franchise Fee | $15,000 |
| Building Lease – 3 Month’s Rent | $9,000 – $25,000 |
| Leasehold Improvements | $0 – $2,500 |
| Cash Register, Credit Card Processing Machines, Computer Systems | $0 – $2,000 |
| Furniture (non-inventory), Fixtures and Equipment | $0 – $1,000 |
| Phones, Other Miscellaneous Items | $500 – $1,500 |
| Security Deposits | $0 – $2,000 |
| Training Expenses | $1,000 – $2,000 |
| Opening Advertising | $2,000 – $4,000 |
| Initial Inventory Package | $46,500 – $62,400 |
| Exterior Signage | $1,000 – $2,000 |
| Local Marketing | $9,000 |
| Additional Funds – 3 months | $42,000 – $74,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $126,000 – $202,400 |
Competitors
Below are a few BoxDrop competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
BoxDrop Franchise Disclosure Document
Frequently Asked Questions
How many BoxDrop locations are there?
As of the latest data, BoxDrop has a total of 173 units, with 172 franchised units and 1 company-owned unit.
What is the total investment required to open a BoxDrop franchise?
The total investment required to open a BoxDrop franchise ranges from $67,000 to $202,000.
What are the ongoing fees for a BoxDrop franchise?
The ongoing fees for a BoxDrop franchise include an 8% royalty fee, which is paid on a weekly basis, and a 2% marketing fee. These fees help support the franchise’s operational systems, ongoing training, and marketing efforts to promote the brand at both the local and national levels.
What are the financial requirements to become a BoxDrop franchisee?
To become a BoxDrop franchisee, the financial requirements include a minimum net worth of $300,000 and liquid capital of at least $75,000. These financial benchmarks ensure that potential franchisees have the necessary resources to invest in and sustain the business during its early stages of operation.
Who owns BoxDrop?
BoxDrop franchise is owned by BoxDrop Mattress & Furniture, LLC.
Disclaimer
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