Product category




Slumberland Franchise Costs $830K – $3.22M (+ 2024 Profits)

Slumberland is a franchise that specializes in selling a wide range of furniture and home decor, including mattresses. It was first opened in 1967 in Richfield, Minnesota, and started franchising in 1974. Today, Slumberland has over 120 stores spread across 12 states in the Midwest, with its headquarters in Oakdale, MN.

This company is known for offering quality products and focuses heavily on customer satisfaction. Slumberland supports its mission by actively participating in community efforts, such as donating beds to families in need through its “Homes for the Holidays” program. This commitment to service helps differentiate Slumberland from its competitors.

Franchisees benefit from Slumberland’s established brand and wide selection of products from top manufacturers like Tempur-Pedic and Sealy. The company also provides a supportive framework for business growth, focusing on both profitability and community engagement, making it an appealing option for potential franchise owners.

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Initial investment

Type of ExpenditureAmount
Initial Fee$45,000 – $55,000
Wages, Travel and Living Expenses During Training$1,000 – $6,000
Building Lease – 3 Months$9,000 – $150,000
Leasehold Improvements$100,000 – $1,500,000
Furniture, Fixtures and Equipment$150,000 – $400,000
Technology and Hardware$50,000 – $85,000
Signs$20,000 – $60,000
Delivery Vehicle Leases – 3 Months$4,500 – $9,000
Initial Inventory$300,000 – $650,000
Additional Funds – 3 Months$150,000 – $300,000
Total$830,000 – $3,215,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

If your Protected Area has at least 40,000 households, you pay an Initial Fee of $50,000. If your Protected Area has less than 40,000 households, you pay $45,000. For multiple franchised Slumberland Businesses in the same market, the Initial Fee for each additional location is $35,000.

Royalty Fee

The royalty fee is the greater of 3% of monthly Gross Revenues or the minimum monthly Continuing Fee specified in your Franchise Agreement. It is due on the 15th day of each month for the preceding month.

Local Advertising Expenditures

8% of Gross Revenues must be spent monthly on local advertising, with detailed reports due to Slumberland by the 15th of each month.

Regional Advertising Fee

Your pro rata share of regional advertising costs, not to exceed 2% of Gross Revenues, is due monthly if applicable.

Marketing Fee

Currently, 1.25% of Gross Revenues is due monthly. Slumberland may charge up to 2% of your monthly Gross Revenues.

Renewal Fee

When it comes time to renew your franchise agreement, a $5,000 fee is payable upon signing the renewal agreement.

Training Fees

For training new managers or personnel, Slumberland charges a fee currently set at $300 per trainee.

Technology Fees

The current estimated range is $500 to $1,200 per month per location and $4,000 to $12,000 per year per location in quarterly maintenance and licensing fees.

Find the most profitable franchises

Access the (only) database of franchise profit stats. For franchisees, franchise brokers and investors.

✅ Download Franchise Disclosure Documents

✅ Compare turnover, investment, profits and more

Need more information about this franchise?

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How to apply

1. Research the Brand

  • Understand Slumberland’s business model, history, and market position.
  • Identify the unique selling points of Slumberland that differentiate it from other furniture franchises.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully examine the FDD provided by Slumberland.
  • Pay attention to the sections detailing initial and ongoing costs, franchisee obligations, legal issues, and earnings potential.
  • Consider consulting with a franchise attorney to help interpret and understand the document.

3. Assess Your Financial Capacity

  • Evaluate your financial resources to determine if you can afford the initial investment and ongoing operational costs.
  • Check for any financial assistance or financing options offered by Slumberland or third-party financial institutions.

4. Choose a Suitable Location

  • Analyze market demand and competition in various locations.
  • Select a location that aligns with Slumberland’s site criteria and market presence goals.

5. Complete Franchise Application

  • Submit a detailed application form to Slumberland to express your interest in opening a franchise.
  • Include your business background, financial information, and a business plan outlining how you will manage and grow your franchise.

6. Training and Support

  • Participate in training programs provided by Slumberland to understand their operational guidelines, sales methods, and product knowledge.
  • Take advantage of ongoing support in marketing, sales, product management, and other operational areas.

7. Store Setup and Inventory Management

  • Coordinate with Slumberland’s approved vendors and suppliers to set up your store and inventory.
  • Follow the brand’s guidelines for store design, layout, and product display to ensure brand consistency and customer experience.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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