BoxDrop Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

172
+
13%
13%
Investment required

?

$67,000 - $202,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$15,000
Royalty fees

?

n.a.
+
3% - 6%
Operating Profit

?

n.a.

Pro
Franchisees

?

172
+
13%
13%
Investment required

?

$67,000 - $202,000
Franchise fee

?

$15,000
Royalty fees

?

n.a.
+
3% - 6%
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

BoxDrop: Redefining Affordable Mattress & Furniture Retail

BoxDrop has emerged as a dynamic player in the mattress and furniture industry, offering deeply discounted, brand-name products to consumers across the U.S. Since its founding in 2011, the brand has expanded swiftly, now operating in more than 400 locations throughout 46 states.

With its headquarters based in Dublin, Ohio, BoxDrop launched its franchise program in 2015. The business operates using a streamlined clearance center model, enabling franchisees to offer well-known mattress and furniture brands at prices 30% to 70% below standard retail rates.

One of BoxDrop’s standout advantages is its franchise-friendly structure—there are no royalty fees, and startup costs remain relatively modest.

Franchisees benefit from a flexible schedule and strong support network, including initial training and ongoing business development assistance. This approach positions BoxDrop as an attractive opportunity for entrepreneurs seeking affordability, independence, and scalability.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

BoxDrop offers 2 types of franchises:

Business Type Initial Investment
New Mattress Only BoxDrop Business $67,000 to $115,900
New Mattress and Sofa BoxDrop Business $126,000 to $202,400

We are summarizing below the main costs associated with opening a New Mattress and Sofa BoxDrop franchised Business. For more information on costs required to start a BoxDrop franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Initial Franchise Fee $15,000
Building Lease – 3 Month’s Rent $9,000 – $25,000
Leasehold Improvements $0 – $2,500
Cash Register, Credit Card Processing Machines, Computer Systems $0 – $2,000
Furniture (non-inventory), Fixtures and Equipment $0 – $1,000
Phones, Other Miscellaneous Items $500 – $1,500
Security Deposits $0 – $2,000
Training Expenses $1,000 – $2,000
Opening Advertising $2,000 – $4,000
Initial Inventory Package $46,500 – $62,400
Exterior Signage $1,000 – $2,000
Local Marketing $9,000
Additional Funds – 3 months $42,000 – $74,000
Total Estimated Initial Investment $126,000 – $202,400

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

172

+
13%
13%
No growth
New

$15,000

$67,000

-

$202,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Retail

Training

BoxDrop provides a structured training program designed to prepare franchisees for successfully operating their business. The training is divided into distinct phases, each with its own objectives and delivery format:

  1. Initial Training Program
    Franchisees are required to complete a 2-3 day Initial Training session within 90 days of opening their BoxDrop Business. This training includes classroom instruction, use of the Operations and Training Manuals, and materials accessed through BoxDrop's dealer website. The program covers logistics, advertising strategies, product specifications, and basic business operations, and may take place at BoxDrop’s Jacksonville training center, corporate office in Dublin, OH, or other designated sites.
  2. On-Going Training Program
    After the Initial Training, franchisees may participate in ongoing sessions offered at various locations. This includes modules on advertising (2.5 hours), product knowledge (2.5 hours), and merchandising (1 hour). Although attendance is optional, it becomes mandatory if a franchisee chooses to expand into additional product categories, such as non-bedding furniture.
  3. National Sales Conferences
    BoxDrop holds up to two National Sales Conferences per year. These events, typically lasting up to four days, offer franchisees in good standing the opportunity to engage in advanced learning, network with peers, and gain insight into new strategies. While not mandatory, attendance is highly encouraged for continued development.

Territory Protection

BoxDrop provides franchisees with a designated territory, but this protection is conditional rather than absolute. At the time a site is approved, the franchisor assigns a territory based on factors such as geography, demographics, and market conditions.

While BoxDrop agrees not to establish another franchise or operate a competing business under the same brand within this territory, this protection only remains valid as long as the franchisee is in full compliance with all contractual obligations, including minimum purchasing thresholds.

Number of units

2024
Franchised units

152

159

172

Company-owned units

1

1

1

Total units

153

160

173

Competitors

BoConcept

Investment required
$421,000
-
$878,000
Franchisees
20
+
5%
5%

Tempur-Pedic

Investment required
$953,000
-
$1,653,000
Franchisees
0
+
n.a.
n.a.

Snooze Mattress Company

Investment required
$197,000
-
$484,000
Franchisees
27
+
n.a.
n.a.

HOMEstretch

Investment required
$110,000
-
$178,000
Franchisees
67
+
n.a.
n.a.

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