Slumberland Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$829,500 - $3,215,000
Franchise Fee
$14,000
Total US Locations
119
Business Summary
Slumberland Businesses specialize in marketing furniture and accessories, including various types of upholstered and leather furniture like recliners, sofas, and love seats. They also offer home office and occasional furniture, casual dining sets, dressers, chests, metal beds, mattresses, and box springs. Additionally, Slumberland provides carpeting, floor coverings, area rugs, draperies, window treatments, interior design services, and installation and measurement services. Slumberland features well-known brands such as Sealy, Tempur-pedic, and La-Z-Boy, operating in large, free-standing retail buildings.
Corporate History
Slumberland Franchising, Inc. was incorporated in Minnesota on May 3, 2007, and has been offering Slumberland® franchises since May 2007. The company's predecessor, Slumberland, Inc., was originally incorporated in Minnesota on April 18, 1968, and has owned and operated Slumberland® Businesses since that time. Slumberland, Inc. also granted franchises from 1974 until 1985. Another predecessor, Slumberland International Co. (SCO), franchised Slumberland® Businesses from 1987 until March 31, 2007, and later merged into Slumberland Franchising, Inc. in 2016.
Financial Overview
Investment Range
$829,500 - $3,215,000
Franchise Fee (Low)
$14,000
Franchise Fee (High)
$55,000
Royalty %
3%
Marketing %
1.25%
Equipment Costs (Low)
$320,000
Equipment Costs (High)
$2,045,000
Working Capital
$225,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Slumberland Franchising, Inc. show zero net income for the years ended December 31, 2024, 2023, and 2022. This is because the company is charged management fees by its affiliate, Slumberland, Inc., that perfectly offset its total revenue. As a result, Slumberland Franchising, Inc.'s financial position, as reflected in its statements, may not be indicative of an independently operating entity. The auditors have issued an unqualified opinion, indicating that the financial statements are presented fairly in accordance with GAAP.
Financing Details
Slumberland offers financing to corporate store employees who purchase a franchise. This financing is specifically for the purchase of inventory from Slumberland, Inc. The terms include a standardized commercial promissory note and security agreement. The amount and terms of financing, including the interest rate and repayment period, are based on factors like creditworthiness, requested amount, and loan purpose, with interest generally corresponding to commercial rates plus an amount for internal costs, not exceeding the maximum legal rate. Promissory notes require monthly or semi-monthly payments of interest and principal, secured by inventory and potentially other personal property. Full or partial prepayment is allowed without penalty. If a default occurs, Slumberland can accelerate repayment, collect enforcement costs (including attorney's fees), and acquire collateral. Slumberland does not offer direct or indirect financing to other franchisees and does not guarantee any third-party obligations.
Performance Metrics
Total US Locations
119
Franchised Units
71
Corporate Units
48
Avg Square Footage
32,500
Franchising Since
1974
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Slumberland has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Slumberland has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
15 years
Renewal Term
15 years
Renewal Conditions
To renew the franchise, Slumberland franchisees must provide written notice at least 180 days before the agreement ends. They need to have complied with all material terms and conditions of the Franchise Agreement, including operating and quality standards, and must have paid all monetary obligations on time. Franchisees are required to make reasonable capital expenditures to remodel, modernize, and redecorate their location, and replace and update equipment to reflect current brand standards. They must have the right to occupy their franchised location, meet Slumberland's managerial, financial, and business standards for new and renewing franchisees, and sign a general release of claims. A renewal fee of $5,000 is also required.
Training & Support Program
Franchisor Assistance
Before opening, Slumberland assists franchisees by reviewing proposed sites (though not selecting them). They provide initial classroom training for the franchisee and their manager in St. Paul, Minnesota, or another designated location, at no additional cost. This includes 200 hours of on-the-job training and pre-opening/opening assistance at the franchised location, also at no cost. Franchisees receive access to the confidential Operations Modules, standard sign plans, specifications for merchandise and equipment, a list of approved suppliers, and a review of their lease. Slumberland also designates required credit cards and technology and hardware, which must be purchased, leased, or licensed from Slumberland, Inc. After opening, Slumberland provides 20 hours of management assistance (by phone, email, or on-site) during the first year of the agreement at no additional cost (travel time included). Franchisees gain access to advertising materials developed by Slumberland, Inc. and must participate in approved advertising and promotional programs. Slumberland reviews franchisee-proposed advertising, administers a system-wide Marketing Program (funded by a 1.25% Gross Revenue fee, credited towards local advertising), and may charge a Regional Advertising Fee (up to 2% of Gross Revenues, credited to local advertising) if a Slumberland, Inc. store operates in the same Designated Marketing Area. Franchisees also receive updates to the Operations Modules, access to a Slumberland® Website for promotion, an e-mail address, and periodic business reviews and evaluations. Optional post-opening training of up to 100 hours is offered at the franchised location within 90 days of opening, at no additional cost. Additional assistance (management, operational, professional, accounting support) can be provided by Slumberland, Inc. for a fee.
Initial Training Hours
226
Training Location
Oakdale, MN and Online – Slumberland University LMS, and Franchised Location
Ongoing Support
After opening, Slumberland franchisees receive 20 hours of management assistance during the first year of the Franchise Agreement, which can be provided by telephone, email, or at the franchised location, with travel time included. They also get access to advertising materials developed by Slumberland, Inc. and can have their proposed advertising reviewed. Slumberland administers a system-wide Marketing Program, funded by a 1.25% fee of Gross Revenues (credited towards local advertising), which focuses on e-commerce, marketing production, and mass digital media. If a Slumberland, Inc. store is in the same Designated Marketing Area, franchisees pay a Regional Advertising Fee (up to 2% of Gross Revenues, credited to local advertising) for regional campaigns. Franchisees receive all supplements and modifications to the Operations Modules, access to a Slumberland® Website for promotion, and an e-mail address. Slumberland also conducts periodic reviews and evaluations of their business. Additionally, Slumberland provides up to 100 hours of post-opening training at the franchised location within 90 days after opening, at no extra cost. Any further management, operational, or professional services can be provided by Slumberland, Inc. for a fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
protected
Territory Size Requirements
Slumberland franchisees receive a protected area defined as a 5-mile radius around their franchised location if it is in a Major Market (at least 40,000 households), or a 10-mile radius if in a Minor Market (less than 40,000 households).
Staffing Notes
Slumberland franchisees are required to keep their business open during designated days and hours. They must ensure that management personnel are always on duty to supervise employees and operations, and maintain a sufficient number of adequately trained and competent staff to provide efficient customer service. All employees must wear standard, approved attire and adhere to good personal hygiene. The business must be managed by a manager who has successfully completed Slumberland's training program, and employees who access the Operations Modules must sign confidentiality agreements.