SLUMBERLAND Franchising Information & Startup Cost
Specialized in home furnishing services, the slumberland franchise has a vast collection of exquisite furniture reserved for all types of furnishing purposes which include living room, bedroom and dining room furnishings.
Founded in 1967, the Slumberland franchise initially opened business by selling mattresses. Today, the franchise has grown to be one of the most respected brands in the home furnishing sector.
With its CEO as Kenny Larson, and Slumberland Inc. as its parent company, the Slumberland Franchise has its corporate headquarters located at Little Canada, Minnesota. The franchising arm of its business was opened 7 years later in 1974.
As Slumberland franchise owners, franchisee will be benefitting from the opportunities available by operating under the Slumberland franchise brand name, and also, using its business model and secrets that have been tried and tested, ensuring that their franchises are adequately guided. This is in addition to a robust support provided by the franchisor to ensure the success of all its franchisees.
Slumberland Franchise Financial Requirements
How much does it cost to open a Slumberland store?
Is Slumberland a franchise that is expensive? What is the average Slumberland franchise fees? There are financial requirements that all prospective franchisees are required to pay to qualify for this franchise opportunity. Meeting these financial requirements avails them the opportunity of operating under Slumberland’s brand name and the use of the franchisor’s logo, business models and secrets.
These alone are invaluable as they ensure that the franchise under the care of the franchisee perform optimally through the use of tried and tested principles of business.
The financial requirements for owning a Slumberland franchise includes an Initial Investment within the range of $545,500 to $2,019,000, a Net-worth requirement of $300,000 to $2,000,000 and a Liquid Cash requirement between $100,000 to $500,000.
Potential for Profitability
The potential for profitability in this sector is high but depends on certain cost effective methods of doing business that includes plugging unwarranted expenses, and maximizing the income potential while providing the best services to clients. Location is also key to how profitable this business can be, as a busy location will certainly impact on income positively.
Slumberland Franchise Training Process
All new Slumberland franchisees undergo a period of training to impart the skills of running their franchises efficiently and at the same time meeting the Slumberland standard. However, trainings are not reserved only for new franchisees, as existing franchisees also benefit from training sessions which are periodic and are in the form of update courses or seminars and refresher courses to update their knowledge on the current trends, ensuring that they are up-to-date with home furnishing industry trends and procedures.
For new franchisees, the length of training lasts a period of 2 to 3 days at the franchisor’s corporate headquarters at Little Canada, Minnesota. Apart from this training is another 2 weeks of on-site training to give them hands-on knowledge and experience in efficiently running their franchises. An added additional training is also given in the form of an ongoing training process involving both on-site and training at its headquarters. With this arrangement, franchisees have not excuse to fail.
Slumberland Franchise Support/Absentee Ownership
In the area of Support, franchisees benefit from an all-encompassing support that includes an ongoing support consisting of periodic newsletter releases, a toll-free line, security, internet services, and field operations.
Others include a grand opening, periodic meetings, and purchasing cooperatives. There is also a marketing support that includes; regional media advertisements, national media advertisements and cooperative advertising.
The franchisor allows for absentee ownership. However, it is required that the franchisee undergoes the mandatory period of training with his/her franchise manager, to allow for smooth functioning of the franchise even in the absence of the franchisee.
All the necessary skills required to efficiently run a Slumberland Franchise are taught to the franchise manager. The maximum number of employees required to run a Slumberland franchise is 10.
Slumberland Franchise Financing Options
All Slumberland franchisees benefit from a financing option provided by the franchisor in the form of an in-house financing arrangement that provides financing covering areas that include the accounts receivable, the inventory, and equipment. However, information on the availability of a third-party financing option is not currently disclosed by the franchisor.
How to Open Slumberland Franchise
To join the Slumberland franchise, indication of intent has to be made through the filling of an online application form provided for prospective franchisors in the franchise section of the franchisors website. This form should be carefully filled and submitted, as information supplied will be checked for eligibility.
Successfully applicants are contacted for further investment discussions using the contact details supplied by the applicant. Such discussions require that the Franchise Disclosure Document (FDD) be handed to the franchise candidate for his study and assent by law.
However, it is highly advised that the Franchise Disclosure Document (FDD) should not be studied without the advice of a franchise lawyer. The contents of the documents are the terms of the contract, and are legal in nature.
Hence, they require to be carefully studied in the company of a competent party to ensure that future disputes between the franchisee and franchisor are avoided. If the terms set forth are acceptable to the franchise candidate, then he/she can go ahead and sign the contract with the franchisor, but not without providing evidence of having made legal consultations.
This article has made available the basic requirements of owing a Slumberland franchise including the guidelines to be followed. With the information provided here, the prospective franchisee is forearmed to make informed investment decisions.