About Slumberland Franchise
Slumberland is a franchised retail furniture business where franchisees market furniture and accessories including upholstered and leather furniture, recliners, motion sofas, sofas and love seats, home office furniture, occasional furniture, casual dining, dressers, chests, metal beds, mattresses and box springs, carpeting, floor coverings, area rugs, draperies, window treatments, interior design services, installation, and measurement services.
Franchisees operate retail showrooms featuring well-known brand names such as Sealy, Tempur-pedic, and La-Z-Boy.
Target customers are retail consumers looking to purchase home furnishings, and sales are not typically seasonal.
Slumberland Franchise Cost & Fees
Minimum Investment
$830K
Average Investment
$2.0M
Maximum Investment
$3.2M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 to $55,000 | One-time payment upon signing |
| Royalty Fee | 3% of monthly Gross Revenues or minimum monthly Continuing Fee, whichever is greater of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.25% of Gross Revenues (Marketing Fee, may increase up to 2%) | National brand fund |
| Total Investment Range | $829,500 – $3,215,000 | Includes build-out, inventory, working capital |
The investment range of $830K–$3.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of monthly Gross Revenues or minimum monthly Continuing Fee, whichever is greater) and marketing fee (1.25% of Gross Revenues (Marketing Fee, may increase up to 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| 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 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 for transfer of equity interest; $10,000 for any other transfer |
| Renewal Fee | $5,000 |
| Technology Fee | $500 to $1,200 per month per location plus $4,000 to $12,000 per year per location in quarterly maintenance and licensing fees |
| Audit Fee | Cost of audit if Gross Revenues understated by more than 2% |
| Local Advertising Expenditures | 8% of Gross Revenues (paid to local suppliers, not franchisor) |
| Regional Advertising Fee | Pro rata share of regional advertising costs, not to exceed 2% of Gross Revenues |
| Training Fees | $300 per trainee (St. Paul) or $300 per trainer plus expenses (on-site) |
| Store Remodel Fee | $3,000 to $10,000 |
| Merchandise Charge | 2.5% to 8% of merchandise purchases based on vendor |
| Interest Charges for Unpaid Fees | Lesser of 18% per annum or maximum legal rate |
| Optional Management and Operational Assistance | $300 per day plus expenses |
| Optional Onsite Assistance | $150 per person per day plus expenses |
| Optional Professional Services | $300 per day plus expenses |
| Accounting Support Fees | $80 per hour plus expenses |
| Late Financial Statement Fee | $500 per month |
| Insufficient Funds Fee | All bank fees plus $100 service charge |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 26 hours classroom plus 200 hours on-the-job training and opening assistance |
| Classroom Training | 26 hours (2 hours Corporate History via LMS, 8 hours Signing Day in Oakdale, 16 hours Working Orientation in Oakdale) |
| On-the-Job Training | 200 hours (Staff Training in Operations, Sales, Store Set-up, Display, Computer and Accounting at Franchised Location and Online via Slumberland University LMS) |
| Training Location | Slumberland University LMS (online), Oakdale, MN, and Franchised Location |
| Additional Training | Up to 100 hours post-opening training within 90 days at no additional cost; 20 hours management assistance during first year; additional training available at $300/day plus expenses; new managers must complete training within 45 days of hire |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | 5-mile radius for Major Markets (40,000+ households); 10-mile radius for Minor Markets (under 40,000 households) |
| Description | Franchisee receives a Protected Area where Slumberland will not open other company-owned or franchised Slumberland businesses within the applicable radius. However, franchisor reserves the right to sell products through other channels including e-commerce, catalog sales, telemarketing, and other distribution methods within the Protected Area. Franchisees are restricted from selling via Internet, catalog, mail order, infomercials, or telemarketing. Area Development Agreement provides exclusive territory for development of multiple locations. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years (automatically extended to match lease term if lease is longer, up to maximum of 20 years) |
| Renewal Term | One additional term equal to then-current standard term |
| Renewal Fee | $5,000 |
| Renewal Conditions | 180 days written notice; compliance with all material terms; all monetary obligations paid; agree to remodel/modernize; sign then-current Franchise Agreement (may have materially different terms); right to occupy Franchised Location; meet managerial/financial/business standards; sign general release of claims |
| Transfer Fee | $5,000 for equity interest transfer; $10,000 for any other transfer (waived for Immediate Family Members) |
| Transfer Conditions | Franchisor approval required (not unreasonably withheld); comply with right of first refusal; all monetary obligations paid; post-term obligation agreement; transferee meets standards; transferee signs then-current Franchise Agreement; general release of claims; transferee completes training; transferee acquires right to Franchised Location; pay transfer fee |
| Termination for Cause | 30 days to cure most defaults; 15 days to cure failure to pay amounts due; 24 hours to cure violations of federal/state/local laws; immediate termination for non-curable defaults including 3 material breaches in 12 months, threats to public health/safety, conviction of felony, insolvency, abandonment, material impairment of Marks |
| Non-Compete Period | 1 year after termination or expiration |
| Non-Compete Details | Franchisee, owners, and personal guarantors may not participate in any competitive business (marketing beds, mattresses, bedroom furniture, sofas, reclining chairs, upholstered furniture) within the Protected Area, within the protected area of any other Slumberland Business, or within any exclusive territory granted by Slumberland, for 1 year after termination or expiration |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is not required to participate in the operation of the Business. However, the Business must be managed by a Manager who has successfully completed Slumberland's training program. The Manager is not required to have an equity interest in the Business. |
| Required Suppliers | Slumberland, Inc. is designated supplier for Technology and Hardware ($50,000-$85,000), proprietary brand name mattresses, and certain brand name merchandise. Franchisees must purchase certain products from approved suppliers listed in Operations Modules. |
| Supply Restrictions | Franchisees must purchase Technology and Hardware from Slumberland, Inc. exclusively. Certain brand name mattresses must be purchased only from Slumberland, Inc. Alternative suppliers for other products require written approval within 60 days of sample submission. No alternative suppliers permitted for mattresses. |
| Franchisor Revenue from Suppliers | For fiscal year ended December 31, 2024, franchisees paid Slumberland, Inc. $7,387,750 for advertising materials and services, $1,166,293 for Technology and Hardware and related services, and $87,609,040 for proprietary brand name and other brand name mattresses and merchandise. Slumberland, Inc. derives a profit from sale of merchandise to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Slumberland may offer financing to corporate store employees who purchase a franchise, for the purchase of inventory from Slumberland, Inc. Terms are based on creditworthiness, amount requested, and purpose of loan. Interest rates correspond to commercial rates plus internal costs. Secured by inventory at minimum, may also require security interest in other personal property. Monthly or semi-monthly payments required. Prepayment allowed without penalty. |
Slumberland Franchise Earnings — Item 19
Average Revenue
$3.1M
Median Revenue
$2.9M
Revenue Range
$805K – $6.2M
Sample Size
68 units
Past financial performance does not guarantee future results. Individual results will vary.
Slumberland Litigation & Risk Flags
Clean Litigation RecordSlumberland has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Slumberland System Growth
Total Units
119
Franchised
71
Company-Owned
48
Slumberland currently operates 71 franchised locations and 48 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 0 | 124 |
| 2023 | 0 | 2 | 122 |
| 2024 | 2 | 5 | 119 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 7 states: IL, IN, MI, MN, ND, SD, WI
Franchisor Financials (Item 21)
Revenue
$6.6M
Total Assets
$591K
Audited by Wipfli LLP for year ending December 31.
Slumberland Franchise — FAQ
The total investment to open a Slumberland franchise ranges from $829,500 to $3,215,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000 to $55,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Slumberland charges a royalty fee of 3% of monthly Gross Revenues or minimum monthly Continuing Fee, whichever is greater of gross sales, plus a 1.25% of Gross Revenues (Marketing Fee, may increase up to 2%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Slumberland Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Slumberland to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Slumberland franchise owners report average revenue of $3.1M and median revenue of $2.9M. This is based on a sample of 68 units. Past performance does not guarantee future results.
Slumberland has been franchising since 1974. The FDD shows an investment range of $829,500-$3,215,000, a 3% of monthly Gross Revenues or minimum monthly Continuing Fee, whichever is greater royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $45,000 to $55,000 and the total investment ranges from $829,500 to $3,215,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Slumberland and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Slumberland or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com