Tempur-Pedic franchise
2025 filing · March 14, 2025
Tempur-Pedic at a glance
A mattress and sleep products store selling Tempur-Pedic mattresses, pillows and adjustable bases. At the end of 2024 there were 114 Tempur-Pedic locations in the US, all company-owned.
The business
- Industry
- Retail
- Franchisor
- Tempur Franchising US, LLC
- The company that sells the franchises
- Franchising since
- 2018
- 7 years of selling franchises
- Franchisor based in
- Lexington, Kentucky
What you pay
- Cost to open
- $953K–$1.65M
- Fee, build-out and opening working capital
- Franchise fee
- $75,000
- Honorably discharged veterans get a discount.
- Royalty
- 6% + minimum
- 6% of gross sales, with a yearly minimum of $50,000, paid monthly
- Brand fund
- Yes
- 2% of gross sales, if a fund is set up
- Renewal fee
- See terms
- 25% of the then current initial franchise fee.
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 114
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 114
- Change in 3 years
- 0
- Franchised locations, 2022–2024
From Tempur Franchising US, LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Tempur-Pedic among all franchises with the same figure.
| Figure | Tempur-Pedic | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,303,000 | Costs more than 87% of franchises |
| Franchise feePaid once, when you sign | $75,000 | Higher than 95% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 114 | More than 78% of franchises |
How much a Tempur-Pedic franchise costs
Opening one Tempur-Pedic costs an estimated $953,000 to $1,653,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($450,000 to $650,000) and additional funds – 3 months ($85,000 to $200,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $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 | |
| Total | $953,000 | $1,653,000 | |
Source: Tempur Franchising US, LLC, 2025 filing, page 23
Tempur-Pedic franchise fee
The franchise fee is $75,000, Honorably discharged veterans get a discount.. You pay it when you sign the franchise agreement.
Source: Tempur Franchising US, LLC, 2025 filing, page 16
Royalty and ongoing fees
| Royalty | 6% of gross sales, with a yearly minimum of $50,000, paid monthly. |
|---|---|
| Brand or marketing fund | 2% of gross sales, if a fund is set up. |
| Software License Fee | $8,700 per year (approximately) |
| Transfer Fee | 50% of the then current initial franchise fee |
| Renewal Fee | 25% of the then current initial franchise fee. |
| Local Advertising and Marketing | 2% of Gross Sales, if required |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Tempur Franchising US, LLC, 2025 filing, page 17
Other fees as filed, from pages 17–19. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Tempur-Pedic does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Tempur Franchising US, LLC, 2025 filing, page 59
How Tempur-Pedic compares
Of the 302 retail franchises on this site, Tempur-Pedic is the 290th cheapest to open and the 86th largest by number of locations.
| Figure | Tempur-Pedic | Typical retail brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $953K | $198K | $222K |
| Cost to open, high end | $1.65M | $425K | $477K |
| Franchise fee | $75K | $35K | $40K |
| Royalty | 6% | 5.7% | 6% |
| US locations | 114 | 38 | 21 |
| Shares earnings figures | No | 187 of 302 | 2,147 of 3,352 |
Typical is the median across the 302 brands in retail franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 0 (0) | 76 | – | – |
| 2021 | 0 (0) | 88 | – | – |
| 2022 | 0 (0) | 99 | 0 | 0 |
| 2023 | 0 (0) | 112 | 0 | 0 |
| 2024 | 0 (0) | 114 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Company-owned stores are run by the franchisor's affiliates; the franchise program is new.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchises for veterans and franchise failure rates.
Over 5 years, from the start of 2020 to the end of 2024, franchised locations went from 0 to 0, no change. The earlier years come from the brand's 2023 filing.
Source: Tempur Franchising US, LLC, 2025 filing, page 60
2020–2021: Tempur Franchising US, LLC, 2023 filing, page 60
Who owns Tempur-Pedic?
Tempur-Pedic franchises are sold by Tempur Franchising US, LLC.
From Tempur Franchising US, LLC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Tempur Franchising US, LLC, 2025 filing, litigation on page 14, bankruptcy on page 15
Tempur-Pedic filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from Tempur Franchising US, LLC’s 2025 filing, issued March 14, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and the NASAA Electronic Filing Depository and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | March 14, 2025 | Minnesota | Costs, fees and locations, 2022–2024 |
| 2023 filing | March 21, 2023 | NASAA depository | Locations, 2020–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
