BoxDropFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A BoxDrop franchise requires a total initial investment of $67K – $202K, including a $15K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $67K – $202K
- 5th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- N/A
- Units
- 184
- 31st pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
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.
- Verdict A (Top Quintile) with a risk score of 41/100.
- 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
- Legal entity
- BoxDrop, LLC
- Parent company
- Retail Service Systems, Inc.
- Predecessor
- entity
- Prior franchisor entity
- Incorporated in
- OH
- HQ
- 6221 Riverside Drive, #2N, Dublin, Ohio 43017
- Auditor
- Nartker, Grunewald, Eschleman & Cooper LLC
- Audited financials
- Franchisor revenue
- $18.9M
- vs $23.6M prior year
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.
- CEO
- Carleton Scott Andrew
- Headquarters
- OH
- Founded
- 2019
- FDD year
- 2025
- States available
- 39
FDD Item 7 · 2025 filing · 26 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 | |
| Initial Franchise Fee (Mattress and Sofa Business)not refundable | $15K | $15K | |
| Building Lease - 3 Month's Rent (Mattress and Sofa Business)not refundable | $9K | $25K | |
| Leasehold Improvements (Mattress and Sofa Business)not refundable | $0 | $3K | |
| Cash Register, Credit Card Processing machines, Computer Systems (Mattress and Sofa Business)not refundable | $0 | $2K | |
| Furniture (non-inventory), Fixtures and Equipment (Mattress and Sofa Business)not refundable | $0 | $1K | |
| Phones, Other Miscellaneous Items (Mattress and Sofa Business)not refundable | $500 | $2K | |
| Security Deposits (Mattress and Sofa Business)not refundable | $0 | $2K | |
| Total initial investment | $193K | $318K |
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 – $202K
- Better than avg vs category
- Liquid capital req'd
- $18K – $74K
- Better than avg vs category
- Franchise fee
- $15K – $15K
- Better than avg vs category
- Royalty
- None
- Ad fund
- Up to 2% of the total purchase price of all Products ordered
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $200 |
| Transfer fee | $5K |
| Renewal fee | $2K |
| Total fee load | 2.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Retail averages
How BoxDrop Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 184
- Opened
- 24
- Last reporting year
- Closed
- 14
- Turnover rate
- 7.6%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +5.8%
- Net unit change last year
- 3-yr CAGR
- +14.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 29
- Terminated (3yr)
- 6
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 46.1%
- Franchisor-initiated terminations
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 1 pending, 1 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Nartker, Grunewald, Eschleman & Cooper LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 41 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 1 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- 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
98 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BoxDrop · FDD (2025) PDF
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 – $202K, 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 184 total units in the United States, including 159 franchised units and 2 company-owned units. 24 new units were opened in the latest reporting year.
Is BoxDrop a good franchise to buy?
FranchiseVerdict rates BoxDrop as a A-grade franchise with a risk score of 41 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.