About Tempur-Pedic Franchise
Tempur-Pedic is a premium mattress retail franchise offering high end mattresses and related sleep and relaxation products through branded retail stores.
Backed by Tempur World, LLC and franchising since 2018, the brand leverages the strong consumer recognition of the Tempur-Pedic name to create a dedicated shopping experience for customers seeking the best in sleep technology and comfort.
The initial franchise fee is $75,000.
Tempur-Pedic Franchise Cost & Fees
Minimum Investment
$953K
Average Investment
$1.3M
Maximum Investment
$1.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Marketing Fee: 2% of Gross Sales, if established; Local Advertising and Marketing: 2% of Gross Sales, if required | National brand fund |
| Total Investment Range | $953,000 – $1,653,000 | Includes build-out, inventory, working capital |
The investment range of $953K–$1.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Marketing Fee: 2% of Gross Sales, if established; Local Advertising and Marketing: 2% of Gross Sales, if required) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $75,000 | $75,000 |
| Travel Expenses to Attend Training | $1,000 | $5,000 |
| Rent for First 3 Months | $60,000 | $75,000 |
| Architect Fees | $15,000 | $30,000 |
| Leasehold Improvements | $450,000 | $650,000 |
| General Contractor Service Fee | $20,000 | $30,000 |
| Sourcing and Materials | $50,000 | $100,000 |
| Interior Design and Merchandising | $7,000 | $24,000 |
| Fixture Package | $40,000 | $120,000 |
| Initial Inventory | $50,000 | $100,000 |
| Marketing Supplies | $10,000 | $30,000 |
| Computer Hardware, Software, and POS System | $50,000 | $80,000 |
| Initial IT Setup | $12,000 | $14,000 |
| Insurance | $12,000 | $50,000 |
| Licenses, Permits | $1,000 | $15,000 |
| Legal & Accounting | $10,000 | $30,000 |
| Miscellaneous Opening Costs | $5,000 | $25,000 |
| Additional Funds – 3 Months | $85,000 | $200,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current initial franchise fee |
| Renewal Fee | 25% of the then current initial franchise fee |
| Technology Fee | Online Marketing: $550 per month; Software License Fee: $8,700 per year (approximately); Device License Fee: $920 per year (approximately); Data Center License & Support: $2,100 per year; IT Software Support: $8,700 per year |
| Audit Fee | Cost of the audit if we discover you have underreported by more than 5% |
| Warehouse and Delivery | $100 per piece |
| Returns | $100 per piece |
| Music License | $420 per year (approximately) |
| In Store Break Fix hardware maintenance | $2,514 per year (approximately) |
| Insurance | Cost of procuring insurance for you in the event you fail to procure or renew your insurance, plus an administrative fee of $2,500 |
| Interest on Late Payments | Interest at the lesser of the rate we prescribe, or the maximum rate allowed by law, plus a late fee of not less than 5% of the total amount overdue. |
| Additional Onsite Training or Seminars | Our then-current per diem fee (currently $1,500 per instructor or consultant), plus our reasonable expenses. |
| Prohibited Product or Service Fee | $250 per day of use of unauthorized products or services |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Securities Offering | $5,000 |
| Indemnification | Will vary under circumstances |
| Refurbishment of Franchised Business | Not to exceed $75,000 (not more than once every five years) |
| Supplier or Product Testing | Actual costs |
| Promotional Expenses | Up to 2% of Gross Sales, if required |
| Relocation Fee | $5,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 85 hours |
| Classroom Training | 32 hours |
| On-the-Job Training | 53 hours |
| Training Location | Our Headquarters or Virtual, Franchise In-store |
| Additional Training | We may require that you, your Operating Principal, your Manager, and/or supervisors that we designate to attend optional or mandatory refresher training and/or ongoing educational training, seminars, conferences, webinars, other electronic communications and regional or national meetings relating to the operation of Franchised Businesses at locations we select. We may require designated employees to obtain certifications that we specify. We may charge you a reasonable fee for each of your trainees required or scheduled to attend such programs and conferences regardless of whether such employees actually attend. We reserve the right to require that you pay us $1,000 per owned franchise annually for the Annual Conference. You will be obligated to bear the cost of wages and any travel and living expenses incurred by you and your employees related to any such programs, conferences and/or Annual Conference/Retreat that we require. If we conduct training at your Franchised Business, you will be responsible for reimbursing us for the living and travel expenses of any of our representatives providing such training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | Yes |
| Territory Size | a radius of up to 5 miles surrounding your Franchised Business |
| Description | You will not receive an exclusive territory. You may face competition from outlets that we own, or from other channels of distribution or competitive brands that we control. However, under the Franchise Agreement you will have the sole right to operate a Franchised Business at a site selected by you and approved by us within the non-exclusive Designated Area. We will determine the Designated Area and insert it in the Franchise Agreement before you sign the Franchise Agreement. The Designated Area will exclude any existing or future protected area of another Tempur-Pedic franchisee that is or may be within the Designated Area. After your selection and our approval of a site for the operation of the Franchised Business, we will assign you a geographic protected area around your Franchised Business (“Protected Area”), and we will not, without your consent, establish, or grant a third party to establish, a Franchised Business within the Protected Area, as long as you remain in compliance with the Franchise Agreement and any other agreements you have with us or our affiliates. The Protected Area will be a radius of up to 5 miles surrounding your Franchised Business. Generally, the Protected Area will be a smaller radius around the Franchised Business if it is located in an urban setting and a larger radius in less densely populated suburban areas. The criteria which will influence the exact radius will include the format of the store you plan to open, population density, local economic and other demographic data, and other local market trends. We retain all rights other than those that we grant you under the Franchise Agreement, including the right to compete with you through various channels and grant rights to third-party retailers within your Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One additional term of 10 years |
| Renewal Fee | 25% of the then current initial franchise fee |
| Renewal Conditions | Written notice of election, performed all material obligations during Initial Term, not in material breach, substantially complied with the Franchise Agreement, right to remain in possession of Your Location, you remodel or refurbish the store to meet the then current image for all stores in the System, execute a general release in our favor; You may be asked to sign a contract with materially different terms and conditions than your original contract. |
| Transfer Fee | 50% of the then current initial franchise fee |
| Transfer Conditions | Transferee qualifies, all amounts due are paid in full, transferee successfully completes training, transferee executes our then-current franchise agreement, transfer fee paid, you sign a general release in our favor, you sign a non-competition agreement in our favor, you de-identify |
| Termination for Cause | Failure to timely make payments, failure to comply with System Standards as outlined in the Franchise Agreement, including sales process, CSI, etc.; failure to comply with Advertising Policies; failure to adhere to minimum resale prices. Failure to maintain permits or licenses, failure to select a site within 90 days, failure to being operation within 180 days of selecting a site, failure to successfully complete training, transfer control of the Franchised Business without our consent, fail to actively operate the Franchised Business, convicted of felony, disclosure of Confidential Information, failure to maintain records and books, failure to pay taxes, repeated or habitual targeted marketing outside Protected Area, stock or sell unapproved items, assignment for the benefit of creditors. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for 2 years within or serving customers located within (i) the Protected Area or any protected area of another Franchised Business; (ii) a 50-mile radius from the borders of the Protected Area, or (iii) a 50-mile radius from any Tempur-Pedic store operated by us, our affiliates or our franchisees. Note, however, non-competition provisions are subject to state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must be under your direct supervision at all times. If you are an individual, you must be directly involved in the daily operations of the Franchised Business. If you are an Entity, you must appoint an Operating Principal who must have authority over all business decisions related to your Franchised Business, must have the power to bind you in all dealings with us, and must be directly involved in the daily operations of the Franchised Business. The Operating Principal must be disclosed when you sign the Franchise Agreement. You or your Operating Principal must exert your full time best efforts to develop and expand the market for Products offered by the Franchised Business and to cooperate with us to accomplish the purposes of the Franchise Agreement. You must not engage in any other business or activity that conflicts with your obligations under your Franchise Agreement. You must operate your Franchised Business in accordance with our System standards of service, advertising, marketing, promotion and management. You must comply with all our business policies, practices and procedures, including the operating times of your Franchised Business, as we prescribe in the Operating Manual, or otherwise in writing from time to time. You must hire and maintain an adequate number and level of management and other personnel required for the conduct of the Franchised Business. |
| Required Suppliers | You must purchase or lease from us or our affiliates or in accordance with our standards substantially all of the Products sold at the Franchised Business. Currently, as further explained below, we or our affiliates are the only Approved Suppliers of the following items: mattresses, pillows, sheets, foundations, adjustable bases, metal frames, travel sets, delivery services. You must purchase or lease from us or approved vendors in accordance with our standards computer equipment and software, leasehold improvements/proprietary displays/in-store merchandising/furniture/ fixtures. You will be required to purchase all mattresses and certain other products that you sell at your Franchised Business from TPNA pursuant to the Product Supply Agreement. |
| Supply Restrictions | There are certain Products that are selected by us for consistency in quality and other considerations. These items, such as certain brand name products, are manufactured or produced only by manufacturers or producers approved by us in writing. To ensure that you adhere to the uniformity requirements and quality standards associated with all Franchised Businesses, you must purchase these items for your Franchised Business. We will provide a written list of these selected Products and vendors which will include, but is not limited to, certain bedding, slippers and other sleep and relaxation products. We will also notify you of any additions to or deletions from this list. You must purchase certain Products which satisfy the written standards and specifications established by us. You must purchase certain Products required for your Franchised Business only from suppliers designated by us (“Approved Suppliers”). For some items, equipment and supplies, there may be only one Approved Supplier from whom you will be required to purchase. These items may include slippers, sheets, headboards, and other sleep and relaxation Products designated by us from time to time. We will provide a written list of designated suppliers and the Products subject to designated supplier requirements, and will notify you of any additions to or deletions from this list. You must contract with third party vendors that we prescribe for locating your franchise location, build-out of the new franchise, interior design and merchandising, and other initial store setups (“Approved Vendor”). For some of these services, there may be only one Approved Vendor. |
| Franchisor Revenue from Suppliers | We may receive income in the form of rebates, discounts, allowances or other payments or credits from designated or Approved Suppliers that sell Products or services to franchisees. In some cases, prices charged by Approved Suppliers to company or affiliate owned stores may be less than prices charged to franchisees based on volume, credits, administrative costs or other factors. If we receive any rebates or other payments from a supplier as a result of your purchases from the supplier, we will have the right, in our sole discretion, to determine how these payments will be used. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligations. |
Tempur-Pedic Franchise Earnings — Item 19
Tempur-Pedic does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Tempur-Pedic does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Tempur-Pedic Litigation & Risk Flags
Clean Litigation RecordTempur-Pedic has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Tempur-Pedic System Growth
Total Units
88
Franchised
0
Company-Owned
88
Tempur-Pedic currently operates 0 franchised locations and 88 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 15 | 0 | 55 |
| 2020 | 21 | 0 | 76 |
| 2021 | 12 | 0 | 88 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Net Income
$-857,518
Total Assets
$1.3M
Audited by Ernst & Young LLP for year ending December 31.
Tempur-Pedic Franchise — FAQ
The total investment to open a Tempur-Pedic franchise ranges from $953,000 to $1,653,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Tempur-Pedic charges a royalty fee of 6% of Gross Sales of gross sales, plus a Marketing Fee: 2% of Gross Sales, if established; Local Advertising and Marketing: 2% of Gross Sales, if required contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Tempur-Pedic Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Tempur-Pedic to ensure you have the most up-to-date version.
Tempur-Pedic does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Tempur-Pedic has been franchising since 2018. The FDD shows an investment range of $953,000-$1,653,000, a 6% of Gross Sales royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $75,000 and the total investment ranges from $953,000 to $1,653,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Tempur-Pedic and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Tempur-Pedic or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com