Bottom line
- Total investment $830K – $3.2M including a $55K franchise fee.
- Average unit revenue of $3.1M/year (median $2.9M).
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 34 loans (below the industry average).
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 Slumberland unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Slumberland units return on equity?
Equity IRR · 5-yr
34.4%
4.39× MOIC
Year-1 DSCR
2.36×
EBITDA ÷ debt service
Equity required
$5.4M
on $14.9M purchase
Total debt
$9.5M
SBA $5.0M + senior + seller note
Overview
About
Slumberland franchisees operate showroom-based mattress and furniture retail locations, managing inventory, sales staff, customer financing, and delivery logistics. Day-to-day operations involve floor sales, credit processing, local marketing, and competing against both regional chains and direct-to-consumer online retailers in a commoditized category.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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
Slumberland presents elevated risk due to near-zero system growth, undisclosed profitability metrics, capital-intensive model, and secular mattress/furniture retail decline—suitable only for operators with strong local market knowledge and financial reserves.
Score breakdown · what drove the 55 / 100 rating
- 01MINORStagnant unit growth at 1.4% YoY indicates mature/declining system with minimal expansion
- 02MEDNet income not disclosed in Item 19 prevents ROI validation and profitability assessment
- 03MEDHigh investment range ($829.5K-$3.2M) with no disclosed average net income creates unclear payback period
- 04MINORRoyalty structure tied to 3% of gross revenues offers no cost relief during downturns and incentivizes top-line over profitability
- 05MED15-year term locks franchisees into long commitment with limited exit flexibility in declining category
- 06MINORFurniture retail sector faces structural headwinds from e-commerce and DTC competition (Wayfair, Amazon, DTC brands)
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
72 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Slumberland · FDD (2025) PDF