Risk Score
Pending analysis
Investment Range
$953,000 - $1,653,000
Franchise Fee
$67,500
Total US Locations
114
Business Summary
Tempur Franchising US, LLC operates retail franchises that specialize in selling high-end, premium quality Tempur-Pedic mattresses and a range of related luxury sleep and relaxation products like pillows, sheets, and adjustable bases. Tempur-Pedic franchisees aim to provide customers with a dynamic, low-pressure shopping experience, offering knowledgeable assistance from highly trained sleep experts and a streamlined purchase process.
Corporate History
Tempur Franchising US, LLC was organized as a Delaware Limited Liability Company on December 5, 2017, and began offering franchises in 2018. It operates under the Tempur-Pedic® trade name, specializing in selling high-end mattresses and related sleep products. Its parent company, Tempur World, LLC, was formed in 1999, and the ultimate parent is Somnigroup International Inc. An affiliate, Tempur Retail Stores, LLC, has operated company-owned locations similar to the franchise offered since 2013, with 114 locations as of December 31, 2024.
Financial Overview
Investment Range
$953,000 - $1,653,000
Franchise Fee (Low)
$67,500
Franchise Fee (High)
$75,000
Royalty %
6%
Equipment Costs (Low)
$590,000
Equipment Costs (High)
$950,000
Working Capital
$142,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Tempur Franchising US, LLC's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. The company has experienced net losses for the years ending December 31, 2022, 2023, and 2024, and its member's equity has significantly decreased over this period, which has led to a special risk disclosure in the FDD.
Financing Details
Tempur Franchising US, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
114
Franchised Units
0
Corporate Units
114
Avg Square Footage
2,500
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tempur Franchising US, LLC has no litigation information to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Tempur Franchising US, LLC has no bankruptcy information to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Tempur Franchising US, LLC franchise agreement, franchisees must provide written notice of their intent to renew between 6 and 9 months before the initial term ends. They must not be in material breach of any obligations, have substantially complied with all agreement terms, maintain the right to occupy their approved location (or a consented substitute), refurbish the business to meet the franchisor's then-current system standards, and, as permitted by law, sign a general release of any claims against the franchisor and its affiliates.
Training & Support Program
Franchisor Assistance
Tempur Franchising US, LLC provides extensive assistance to its franchisees. Before opening, the franchisor helps with designating the protected area and site selection, reviews and approves site plans and construction, ensures products and supplies meet specifications, and conducts initial training. It also provides operating guidelines, the Operating Manual, a new store opening checklist, guidance for initial inventory and fixture package acquisition, and grand opening campaign guidelines. After opening, Tempur Franchising US, LLC continues to provide products and acquisition guidelines, offers general advisory assistance including site visits, provides expertise to improve business performance, and organizes annual or biennial conferences. The franchisor also provides specifications for advertising and marketing materials, content for approved social media pages (retaining administrative rights), and updates to the Operating Manual. It will also provide lists of approved suppliers, maintain corporate websites that list store locations, establish pricing policies where permitted by law, and administer a Marketing Fund if established.
Initial Training Hours
56
Training Location
Our Headquarters (Lexington, KY) or Virtual
Ongoing Support
After opening, Tempur Franchising US, LLC franchisees receive ongoing support including general advisory assistance, which may involve site visits, to help with operations, advertising, and promotion. The franchisor provides knowledge and expertise to improve business performance and organizes annual or biennial conferences for franchisees to discuss mutual interests and network. Tempur Franchising US, LLC also provides specifications for advertising and marketing materials, content for social media pages (with the franchisor retaining administrator rights), and updates to the Operating Manual. The franchisor maintains corporate websites to promote the brand and lists franchisee store locations, and may establish and provide minimum resale price policies. If a Marketing Fund is established, the franchisor will administer it.
Franchise Requirements
Ideal Candidate Profile
Tempur-Pedic seeks franchisees who are either individuals committed to direct, daily, and full-time involvement in the operation of the business, or business entities that appoint an Operating Principal to fulfill this role. The Operating Principal must have full authority over all business decisions and dedicate their full-time efforts to promoting and enhancing the Tempur-Pedic Franchised Business. Franchisees should not engage in any other business or activity that conflicts with their obligations to the Tempur-Pedic franchise.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Tempur Franchising US, LLC franchisees receive a protected area that extends up to a 5-mile radius around their approved business location. The exact size of this radius is determined based on factors like the store format, population density, local economic data, and other market trends. Generally, the radius is smaller in urban areas and larger in less populated suburban areas.
Staffing Notes
Tempur Franchising US, LLC requires the franchisee (or Operating Principal, if an entity) and their manager(s) to complete initial training to the franchisor's satisfaction. Franchisees are responsible for hiring and maintaining an adequate number of management and other personnel for the business, and for ensuring these employees are properly trained. If a manager's employment ends, a new manager must complete the required training within 60 days. The franchisor holds the franchisee solely liable for any breach of the agreement or failure to follow the System by their employees.