Bottom line
- Total investment $302K – $860K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year.
- Rated STRONG with a risk score of 37/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Snooze® Mattress Co. unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Snooze® Mattress Co. units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$270K
on $1.4M purchase
Total debt
$1.1M
SBA $0.7M + senior + seller note
Overview
About
Snooze franchisees operate standalone or inline mattress retail showrooms, selling premium and value mattresses directly to consumers through in-store consultations and e-commerce integration. Day-to-day operations include customer education, sleep consultations, inventory management, sales floor staffing, and local marketing to drive traffic to their protected territory.
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 · 9 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
Snooze presents moderate-to-cautionary risk due to missing financial transparency (no Item 19 net income data), high capital requirements, and unproven scalability in a competitive mattress retail market.
Score breakdown · what drove the 37 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to verify profitability claims against $1.35M average revenue
- 02MINORHigh initial investment range ($302K-$860K) with royalty structure (5% or flat fee, whichever greater) creates unpredictable profit margins
- 03MINORRelatively small franchise system (47 units) limits brand recognition and purchasing power; YoY growth of 87.5% may not be sustainable
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
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Snooze® Mattress Co. · FDD (2025) PDF