Bottom line
- Total investment $67K – $202K including a $15K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one BoxDrop unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Overview
About
BoxDrop franchisees operate mattress retail locations, offering direct-to-consumer sales, delivery, and setup services. Day-to-day operations include showroom management, customer consultations, sales transactions, logistics coordination, and inventory management. The model emphasizes low overhead through compact store formats and e-commerce integration.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
BoxDrop presents meaningful investment risk due to non-disclosed financials, sluggish growth, active litigation, and unclear royalty/support model — proceed only after extensive franchisee validation.
Score breakdown · what drove the 59 / 100 rating
- 01MINORNo financial disclosure (avg revenue/net income not available) — inability to assess unit profitability or ROI
- 02MINORSlow unit growth (5.8% YoY) suggests market saturation or franchisee satisfaction concerns
- 03HIGHActive litigation involving parent company (Retail Service Systems, Inc.) in discovery phase — legal fees exposure unclear
- 04MEDNo royalty model disclosed — unusual structure raises questions about franchisor incentive alignment and ongoing support funding
- 05MINORFranchise fee ($15,000) appears low relative to investment range ($67k-$202k) — suggests significant CapEx with unclear franchisor ROI commitment
- 06HIGHGoing Concern = False (unclear if this means 'not applicable' or negative assessment) — requires clarification on financial stability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BoxDrop · FDD (2025) PDF