This is not a traditional franchise company; started by a husband-and-wife team they opened their first store over twenty years ago. Eventually they opened a second retail location. After selling one retail location they decided to expand by selling license agreements to a Buying Group. They currently have 9 licensed “Sleep Stores” that belong to this licensed Buying Group. The concept for retail stores and licensed locations are primarily a retail “sleep” store which carries mattresses, pillows, accessories, massage chairs, and bedding (sheets and pillowcases).

The company’s owner receives a 10% kick-back on all products purchased through the Buying Group. This rebate comes to him quarterly as a credit applied to the owner’s one retail purchases account. Once the purchases made by the Buying Group reach $125,000 the credit for that quarter is applied to the owner’s account. This rebate typically amounts to approximately $50,000 per year once the threshold amount ($125,000) per quarter is reached. 

They then added a wholesale distribution network. They have currently grown to a network of 40 wholesale customers who buy from the preferred supplier. The wholesale group generates $2000 to $2500 in rebates per month which are also credited to the seller’s purchases account with the supplier.

They decided they wanted to concentrate on their one retail location so they could concentrate on building the licensee store and wholesale distribution businesses. This is when they sold the second location and have been operating the company and its three different revenue streams from their one remaining retail store.

Inventory is included in the asking price and averages close to $41,000 at cost. The assets being sold also include a 2022 Ford F150 Raptor delivery vehicle.

The retail store is located in a traditional retail strip shopping center. The site consists of a showroom, bathroom, and an inventory storage room.  They are in the first year of a new 5-year lease that continues until 10/31/2029.

This company is ripe for growth in both the Buying Group and wholesale accounts. Take advantage of this expansion ready opportunity now.