SlumberlandFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Slumberland franchise requires a total initial investment of $830K – $3.2M, including a $55K franchise fee. Per the 2025 FDD, average unit revenue was $3.1M[2]. SBA 7(a) loans show a 7.1% charge-off rate across 20 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $830K – $3.2M
- 78th pct Home Services
- Avg gross sales
- $3.1M
- 47th pct Home Services
- Royalty
- N/A
- Units
- 119
- 56th pct Home Services
- SBA default
- 7.1%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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 $830K – $3.2M including a $55K franchise fee.
- Average unit revenue of $3.1M/year (median $2.9M).
- Verdict A (Top Quintile) with a risk score of 51/100. SBA loan charge-off rate of 7.1% across 20 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Slumberland Franchising, Inc.
- Parent company
- Slumberland International Co.
- Incorporated in
- MN
- HQ
- 3505 High Point Dr. N, Building #2, Oakdale, MN 55128
- Auditor
- Wipfli LLP
- Audited financials
- Franchisor revenue
- $6.3M
- vs $6.6M prior year
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.
- CEO
- Kenneth S. Larson
- Headquarters
- MN
- Founded
- 1968
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $150K | $300K |
| Equipment, build-out, other | $625K | $2.9M |
| Total initial investment | $830K | $3.2M |
Source: Slumberland 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$368K
11.8% margin
Unlevered ROIC
16%
EBITDA / total invested capital
Payback
6.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $830K – $3.2M
- Below avg, review vs category
- Liquid capital req'd
- $150K – $300K
- Below avg, review vs category
- Franchise fee
- $45K – $55K
- Near category avg vs category
- Royalty
- The greater of: 3% of monthly Gross Revenues, or the mini…
- Ad fund
- 1.3%
- typical 3–5%
- Total fee load
- 4.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.3% of gross sales |
| Technology fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 4.3% of rev |
A 4.3% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $3.1M
- Per unit, per year
- Median gross sales
- $2.9M
- Item 19 type
- gross_sales
- Sample size
- 68 units
- vs category median 25 · large
- Range (low → high)
- $805K→$6.2M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
vs Home Services averages
How Slumberland Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 119
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 48
- Corporate units in the system
- % franchised
- 60%
- vs corporate-owned
- Net growth (yr3)
- +1.4%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
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 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $7.1M
- Median loan
- $259K
- 50th percentile
- Charge-off rate
- 7.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 92.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Slumberland's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 14-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Wipfli LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 51 / 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
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 200 hrs
- POS system
- point-of-sale, accounting and inventory access system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: point-of-sale, accounting and inventory access system
Item 20 · call current owners
Franchisee Contacts
72 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Slumberland · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Slumberland franchise?
The total investment to open a Slumberland franchise ranges from $830K – $3.2M, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Slumberland franchise owners earn?
According to Item 19 of the Slumberland FDD, the average gross sales per unit is $3.1M. The median is $2.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Slumberland's franchise failure rate?
Based on SBA 7(a) loan data, Slumberland has a charge-off rate of 7.1% across 20 loans, meaning 7.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Slumberland franchise locations are there?
As of their most recent FDD filing, Slumberland has 119 total units in the United States, including 71 franchised units and 48 company-owned units. 2 new units were opened in the latest reporting year.
Is Slumberland a good franchise to buy?
FranchiseVerdict rates Slumberland as a A-grade franchise with a risk score of 51 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.