BoxDrop Franchise Cost, Revenue & Review 2026
- Investment
- $67K – $116K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
BoxDrop is a discount-retail franchise selling mattresses and bedding, often by appointment from a low-overhead warehouse space. Franchisees run a lean mattress-sales operation managing inventory, appointments, and delivery.
FranchiseVerdict summary · 2026
A BoxDrop franchise requires a total initial investment of $67K – $116K, including a $15K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $67K – $116K
- 5th pct Retail
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 127
- 31st pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $67K – $116K including a $15K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 38/100 (higher is better).
- GROWTHNegative: net -59 franchised outlets in the latest year (15 opened, 74 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BoxDrop, LLC
- Parent company
- Retail Service Systems, Inc.
- FDD Item 1, page 11 of the 2026 FDD
- Predecessor
- Power Marketing Direct, Inc. and PMD Furniture Direct, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Carleton Scott Andrew
- Incorporated in
- Ohio
- HQ
- 6221 Riverside Drive, #2N, Dublin, Ohio 43017
- Auditor
- Nartker, Grunewald, Eschleman & Cooper, LLC (David Eschleman, CPA)
- Audited financials
- Franchisor revenue
- $34.8M
- vs $28.7M prior year
Overview
About
- CEO
- Carleton Scott Andrew
- Headquarters
- Ohio
- Founded
- 2019
- FDD year
- 2026
- States available
- 39
Can you afford it, and what does the money buy?
Entry cost runs 73% below the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Mattress Only Business)not refundable | $15K | $15K | |
| Building Lease - 3 Month's Rent (Mattress Only Business)not refundable | $3K | $10K | |
| Leasehold Improvements (Mattress Only Business)not refundable | $0 | $3K | |
| Cash Register, Credit Card Processing machines, Computer Systems (Mattress Only Business)not refundable | $0 | $2K | |
| Furniture (non-inventory), Fixtures and Equipment (Mattress Only Business)not refundable | $0 | $1K | |
| Phones, Other Miscellaneous Items (Mattress Only Business)not refundable | $500 | $2K | |
| Security Deposits (Mattress Only Business)not refundable | $0 | $2K | |
| Training Expenses (Mattress Only Business)not refundable | $1K | $2K | |
| Opening Advertising (Mattress Only Business)not refundable | $1K | $2K | |
| Initial Inventory Package (Mattress Only Business)not refundable | $22K | $39K | |
| Exterior Signage (Mattress Only Business)not refundable | $1K | $2K | |
| Local Marketing (Mattress Only Business)not refundable | $6K | $6K | |
| Additional Funds - 3 months (Mattress Only Business)not refundable | $18K | $31K | |
| Total initial investment | $67K | $116K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $67K – $116K
- Top 40% of category vs category
- Liquid capital req'd
- $18K – $31K
- Top 40% of category vs category
- Franchise fee
- $15K – $15K
- Top 40% of category vs category
- Royalty
- No ongoing royalty fee disclosed; franchisor earns revenu…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% |
| Technology fee | $200 |
| Transfer fee | $5K |
| Renewal fee | $500 |
| Inventory (initial) | $22K – $62K |
| Total fee load | 2.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
BoxDrop makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one BoxDrop unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 2.0% — below the Retail median of 8.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 14.5% CAGR over 3 years across 127 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How BoxDrop Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 127
- Opened
- 15
- Last reporting year
- Closed
- 74
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 58.3%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -32.1%
- Net unit change over 3 years
- 3-yr CAGR
- +14.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 6
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 8
- Franchisor's next-year forecast
- Termination rate
- 46.1%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 39 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
39
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $300K
- Median loan
- $300K
- average
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
(1) Organ Cole LLP v. RSS et al. (2018) - former law firm suing RSS/Andrew for unpaid legal fees, pending. (2) RSS v. America Bedding Direct, LLC et al. (2026) - RSS suing former employees for trade secret misappropriation; TRO issued in RSS's favor.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Nartker, Grunewald, Eschleman & Cooper, LLC (David Eschleman, CPA)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 38 / 100 verdict
- 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
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 2.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 200 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Franklin County, Ohio (litigation only, no arbitration) |
| Jury trial waiver | No |
| Governing law | Ohio |
| Litigation count | 2 |
View Item 3 litigation summary
(1) Organ Cole LLP v. RSS et al. (2018) - former law firm suing RSS/Andrew for unpaid legal fees, pending. (2) RSS v. America Bedding Direct, LLC et al. (2026) - RSS suing former employees for trade secret misappropriation; TRO issued in RSS's favor.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 0 hrs
- Training location
- BoxDrop/RSS headquarters in Dublin, Ohio, an approved Coaches location, or "See America" training location
- Ongoing training
- Optional
- Time to open
- 1 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Cash Register System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Cash Register System
Item 20 · call current owners
Franchisee Contacts
186 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BoxDrop franchise?
The total investment to open a BoxDrop franchise ranges from $67K – $116K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BoxDrop franchise owners earn?
BoxDrop makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns BoxDrop?
BoxDrop is franchised by BoxDrop, LLC. Its parent company is Retail Service Systems, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the BoxDrop FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BoxDrop FDD and qualifies whose outlets they describe.
What is BoxDrop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for BoxDrop (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many BoxDrop franchise locations are there?
As of their most recent FDD filing, BoxDrop has 127 total units in the United States, including 125 franchised units and 2 company-owned units. 15 new units were opened in the latest reporting year.
Is BoxDrop a good franchise to buy?
FranchiseVerdict rates BoxDrop as a C-grade franchise with a verdict score of 38 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.