Snooze Mattress Co. Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$197,350 - $483,600
Franchise Fee
$39,500
Min Cash Required
$10,000
Total US Locations
29
Business Summary
Snooze® Mattress Co. operates mattress stores that specialize in selling various types of mattresses and bedding accessories. The business is service-oriented, aiming to help customers find mattresses specific to their body types to improve sleep, and offers a selection of bedding products and accessories. Each Snooze® Mattress Co. location features an open-style sales floor with advanced technology, including a dream mapping service to identify pressure points and an interactive create-your-own pillow kiosk. Snooze® Mattress Co. also sells box springs, frames, pillows, bedding accessories, limited bedroom furniture, and offers an interactive kiosk for ordering household furniture, along with warranty and delivery services.
Corporate History
Snooze International, LLC, operating as Snooze® Mattress Co., was incorporated in Colorado on March 4, 2021. The company began offering franchises in 2022, marking its first venture into franchising. Prior to this, its affiliate, Daydream, LLC, was formed in May 2019 and operated businesses similar to the Snooze® Mattress Co. concept. Another affiliate, Wake Up Pueblo, LLC, was formed in August 2020 as a marketing agency, and Snooze Sleep, LLC was formed in January 2021 as a supplier. The President/CEO of Snooze International, LLC, Matt Smith, previously served as President of Daydream, LLC and had extensive sales experience in the mattress industry since 2000.
Financial Overview
Investment Range
$197,350 - $483,600
Franchise Fee (Low)
$39,500
Franchise Fee (High)
$49,900
Minimum Cash Required
$10,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$51,000
Equipment Costs (High)
$149,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights the financial condition of Snooze International, LLC as a special risk, noting that its financial position (as seen in Item 21) calls into question its ability to provide services and support to franchisees. The financial statements show a member's deficit of $654,823 as of December 31, 2023, with total liabilities of $2,309,836 exceeding total assets of $1,655,013. The independent auditor's report also indicates that management is required to evaluate conditions that raise substantial doubt about Snooze International, LLC's ability to continue as a going concern within one year.
Financing Details
Snooze® Mattress Co. does not offer any direct or indirect financing arrangements to its franchisees. Snooze® Mattress Co. also does not guarantee any notes, leases, or other obligations for a single franchise.
Performance Metrics
Total US Locations
29
Franchised Units
27
Corporate Units
2
Avg Square Footage
2,750
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Snooze® Mattress Co. has no litigation history to report, as confirmed by Item 3 of its Franchise Disclosure Document, which states that no litigation is required to be disclosed.
Bankruptcy History
Snooze® Mattress Co. has no bankruptcy history for itself, its predecessors, or any key personnel, as confirmed by Item 4 of its Franchise Disclosure Document, which states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Snooze® Mattress Co. franchise, franchisees must provide written notice to the franchisor between 6 to 12 months before the current agreement ends. They must be in full compliance with all terms of the franchise agreement, sign the then-current form of the franchise agreement (which may have different terms), meet current training and qualification requirements, sign a general release, and upgrade their store to meet current brand standards.
Training & Support Program
Franchisor Assistance
Snooze® Mattress Co. provides various forms of assistance to its franchisees. Before opening, this includes real estate services like guidance with site identification, evaluation, and lease negotiation. The franchisor also approves the lease, provides guidance on licenses and permits, and offers mandatory specifications for the store's architectural design, layout, decor, and signage. Franchisees receive written lists of approved technology items, furnishings, equipment, products, services, and vendors, along with training on purchasing strategies. Snooze® Mattress Co. also provides initial training for up to three individuals at its corporate headquarters, along with a self-study program, and up to three days of pre-opening or grand opening assistance at the franchisee's location at no additional cost for the initial store. During operation, Snooze® Mattress Co. provides ongoing consultation regarding product updates, vendor relationships, operational procedures, industry developments, sales, marketing, and problem-solving. Franchisees receive updated lists of approved products, services, and vendors, as well as suggested pricing guidelines, merchandising, and presentation standards. The franchisor reviews and approves local advertising materials, provides updated hiring guidelines, and offers continuing education for new managers (for a fee). Franchisees have access to online portals for questions and support during business hours and are informed of technology update requirements. The franchisor also reserves the right to administer a System Advertising Fund for technology and product development, and national advertising.
Initial Training Hours
49
Training Location
Corporate headquarters in Pueblo, CO
Ongoing Support
After opening, Snooze® Mattress Co. provides ongoing consultation to its franchisees regarding product updates, vendor and supplier relationships, operational procedures, industry developments, sales, marketing, and promotional strategies, as well as assistance with operational problems outside the scope of the Operations Manual. Franchisees receive updated lists of approved products, services, furnishings, equipment, and suppliers. The franchisor provides updated suggested pricing guidelines, merchandising, and presentation standards, and reviews and approves advertising and website promotions. Snooze® Mattress Co. also provides updated hiring guidelines and continuing education for any new manager, with fees applying for in-person sessions. Franchisees receive guidance on administrative, record-keeping, and accounting procedures, and requirements for technology item and software updates. The franchisor may also provide additional on-site supervision and assistance for a fee, and may conduct quarterly meetings or annual conferences, which may have registration fees and require franchisees to cover travel and accommodation costs. Access to online portals is provided for questions and support during business hours.
Franchise Requirements
Ideal Candidate Profile
Snooze® Mattress Co. seeks franchisees who are hands-on operators, capable of providing direct, day-to-day, full-time supervision of their business. While owners may hire a manager to handle daily operations, they are expected to be actively involved in overseeing the business. Ideal candidates should possess business experience, a customer-friendly personality, and the ability to effectively obtain and service customers. Franchisees must also be capable of identifying and obtaining all necessary licenses, permits, and certifications required to operate a retail mattress store in their locality. The ability to manage a team and adhere to the franchisor's system and standards is important.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Operational Details
Location Type
Retail
Owner Participation
Semi-Absentee
Territory Type
Protected
Territory Size Requirements
Snooze® Mattress Co. grants franchisees a protected territory that typically extends up to a 2-mile radius around their approved store location, as defined by Google Maps or a similar mapping program. The franchisor reserves the right to adjust this size to be larger or smaller based on factors such as population density, average household incomes, existing competition, demographics of the surrounding area, and market penetration. The territory is determined once a location is chosen and approved, and its boundaries are defined by major topographical features like streets, highways, rivers, or underdeveloped land. The franchisor will not establish another Snooze® Mattress Co. store or license another franchisee to do so within a franchisee's protected territory.
Staffing Notes
Snooze® Mattress Co. requires each franchise location to have a Store Manager who provides day-to-day, full-time supervision of the business. This manager must successfully complete the franchisor's mandatory training program. The franchisee, or an owner if it's an entity, can serve as the Store Manager, but is not required to. Franchisees are solely responsible for all aspects of employee management, including hiring, training, setting salaries, managing benefits, determining hours, implementing disciplinary practices, and firing employees. They are encouraged to conduct background checks on prospective employees and independent contractors, and to ensure employees wear logoed uniforms (pajamas). Snooze® Mattress Co. provides recommended hiring guidelines and general guidance, but ultimately, franchisees are responsible for all employment decisions and ensuring compliance with labor laws.