Tempur-Pedic

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Tempur-Pedic

Tempur-Pedic Franchise FDD, Costs & Fees (2025)

Tempur-Pedic offers sleep products and solutions, including mattresses and accessories designed to promote comfort and restful sleep for customers.

Founded in 1992 by Bobby Trussell, Tempur-Pedic has transformed the sleep industry with its pioneering use of viscoelastic foam technology. Headquartered in Lexington, Kentucky, the company specializes in manufacturing and distributing premium mattresses and pillows designed to provide unparalleled comfort and support.

Tempur-Pedic began franchising in 2018, offering entrepreneurs the opportunity to operate retail stores under its esteemed brand. These franchises focus on delivering high-end sleep and relaxation products directly to consumers, ensuring a consistent and quality experience. The initial investment for a Tempur-Pedic franchise ranges from $953,000 to $1,653,000, which includes franchise fees between $125,000 and $255,000.

What sets Tempur-Pedic apart from its competitors is its commitment to innovation and quality. The company's proprietary TEMPUR® material, originally developed from NASA's research to cushion astronauts during space travel, adapts to the body's shape, weight, and temperature, offering personalized support and pressure relief.

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.

Type of Expenditure Amount
Initial Franchise Fee $75,000
Travel Expenses to Attend Training $1,000 to $5,000
Rent for First 3 Months $60,000 to $75,000
Architect Fees $15,000 to $30,000
Leasehold Improvements $450,000 to $650,000
General Contractor Service Fee $20,000 to $30,000
Sourcing and Materials $50,000 to $100,000
Interior Design and Merchandising $7,000 to $24,000
Fixture Package $40,000 to $120,000
Initial Inventory $50,000 to $100,000
Marketing Supplies $10,000 to $30,000
Computer Hardware, Software, and POS System $50,000 to $80,000
Initial IT Setup $12,000 to $14,000
Insurance $12,000 to $50,000
Licenses, Permits $1,000 to $15,000
Legal & Accounting $10,000 to $30,000
Miscellaneous Opening Costs $5,000 to $25,000
Additional Funds – 3 Months $85,000 to $200,000
TOTAL $953,000 to $1,653,000

Franchise Disclosure Document

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Competitors

Below are some of

Tempur-Pedic

key competitors in the

Housing

sector.

Started franchising
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Franchise fee

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Royalty fee

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Tempur-Pedic
2018
0
+
n.a.
n.a.
$75,000
6.00%

$953,000

-

$1,653,000

n.a.

$0

Upgrade

n.a.

n.a.

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n.a.

n.a.

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2006
20
+
5%
5%
$30,000
n.a.

$421,000

-

$878,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

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Upgrade
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1989
27
+
4%
4%
$50,000
5.00%

$270,000

-

$714,000

Upgrade

n.a.

$1,859,000

64.6%

n.a.

Upgrade

12.2%

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
1975
55
+
-8%
-8%
$30,000
6.00%

$47,000

-

$209,000

Upgrade

n.a.

$254,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2021
27
+
n.a.
n.a.
$49,900
5.00%

$197,000

-

$484,000

Upgrade

n.a.

$65,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
1974
71
+
0%
0%
$55,000
3.00%

$830,000

-

$3,215,000

Upgrade

n.a.

$2,876,000

46.3%

n.a.

Upgrade

5.4%

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2022
6
+
n.a.
n.a.
$49,500
6.00%

$109,000

-

$281,000

Upgrade

n.a.

$516,000

70.9%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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Priority support

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Training

Tempur-Pedic provides a range of training programs designed to prepare franchisees for operating their retail outlets effectively. Here are the types of training provided by the Franchisor:

  1. Initial Training Program
    Before opening, Tempur-Pedic requires franchisees and their managers to attend and complete an initial training program. This training includes comprehensive guidelines and specifications covering construction, build-out, installation, safety procedures, sales and marketing, customer service, and more. Franchisees are also granted access to the Operating Manual, which sets standards for management and operations.
  2. Store Opening Support
    As part of the pre-opening assistance, franchisees receive a new store opening checklist and detailed guidance on acquiring inventory and fixtures. They are supported through site selection, store design approval, and set-up to ensure compliance with Tempur-Pedic's brand standards.
  3. Post-Opening Ongoing Training and Support
    After the store is operational, Tempur-Pedic continues to offer general advisory assistance including periodic site visits. They provide knowledge and expertise to help improve business performance, updates to the Operating Manual, and newly approved supplier lists.
  4. Annual or Biennial Franchise Conference
    Franchisees are invited to attend conferences held either annually or biennially. These events serve as educational platforms, offering networking opportunities and discussions on industry best practices and franchise operations.

Territory Protection

Tempur-Pedic grants franchisees a “Protected Area” but not an exclusive territory. This Protected Area is typically a radius of up to five miles around the franchise location, and within it, Tempur-Pedic agrees not to open or allow another franchise without the franchisee’s consent, provided they remain in compliance.

The size of the Protected Area depends on factors like population density and store format. While franchisees are restricted from selling or marketing outside this area, Tempur-Pedic and its affiliates may still sell through other channels, including online and authorized third-party retailers.

Number of units

2025
Franchised units

0

0

0

Company-owned units

99

112

114

Total units

99

112

114

Competitors

BoConcept

Franchisees

?

20
+
5%
5%
Investment

?

$421,000 - $878,000

Verlo Mattress

Franchisees

?

27
+
4%
4%
Investment

?

$270,000 - $714,000

The Great Frame Up

Franchisees

?

55
+
-8%
-8%
Investment

?

$47,000 - $209,000

Snooze Mattress Company

Franchisees

?

27
+
n.a.
n.a.
Investment

?

$197,000 - $484,000

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