More Space Place
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Since its inception over 20 years ago, More Space Place has been committed to helping individuals discover customized furniture solutions that suit a space of any size. More Space Place makes room for the way customers live with a wide selection of beautiful, stylish and smart designs that are highly adaptable to any room. With the help of store owners, customers are able to design a room that caters to their precise needs–a custom walk-in closet, an organized pantry or utility room, an individualized garage and storage space, or a deluxe entertainment center. As the nation’s largest Murphy bed retailer, customers can easily transform a bedroom at their leisure so that a home office doubles as a guest room and a child’s room instantly becomes a playroom.
Rather than displaying closet and cabinetry products in warehouse spaces, More Space Place constructs beautiful, efficient and practically designed showrooms that accentuate and compliment product designs. Vignette displays, samples and proprietary software packages give customers an opportunity to visualize their rooms before making a purchase. More Space Place also provides franchisees with powerful software that can be used for in-home consultation.
More Space Place® Franchise is actively seeking the best candidates for ownership of our More Space Place retail stores and organized, hard-working and dedicated Veteran Owners are excellent candidates.
To demonstrate our appreciation for their honorable service for the USA, Veterans will receive a $12,000 DISCOUNT off of their initial store. In relation to our initial franchise fee of $29,500, our MSP Veteran Transition Plan (VTP) represents a substantial 40% discount.
(Valid through December 31, 2012.)
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised | 38 | 37 | 37 |
| | % Change | -- | -2.63% | 0.0% |
| | Company-Owned | 4 | 5 | 5 |
| | % Change | -- | 25% | 0.0% |
| | Total | 42 | 42 | 42 |
| | % Change | -- | 0% | 0% |
| | Franchised as % of Total | 90.48% | 88.1% | 88.1% |
Investment Required
The fee for an initial More Space Place franchise is $29,500. Additional licenses are $22,000.
More Space Place provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| | Franchise Fee | $29,500 | $29,500 |
| | Training Expenses | $2,500 | $4,000 |
| | Real Estate Improvements | $20,000 | $38,000 |
| | Office Equipment and Supplies | $2,000 | $3,000 |
| | Computer Hardware and Software | $2,200 | $2,400 |
| | CAD Design Software Keys | $1,800 | $3,600 |
| | Pallet Lifter or Fork Lift | $600 | $3,000 |
| | Van or Trailer | $1,600 | $3,700 |
| | Signage and Graphic | $5,000 | $12,000 |
| | Initial Inventory | $25,500 | $39,000 |
| | Store Display Accessories | $3,500 | $6,000 |
| | Opening Advertising | $8,000 | $12,000 |
| | Architect’s Fee and Engineering Costs | $0 | $3,000 |
| | Miscellaneous Operating Costs | $4,000 | $6,000 |
| | Insurance | $1,800 | $2,800 |
| | Additional Funds and Working Capital | $25,000 | $35,000 |
| | Total Investment | $133,000 | $203,000 |
On-going Expenses
More Space Place franchisees pay a royalty fee equal to the greater of 4.5% of gross revenue or $500 per month, and a National Advertising Program (NAP) fee equal to the greater of 2.5% of gross revenue or $250 per month. Franchisees must contribute a minimum of 2.5% or $500 of gross sales towards regional advertising, and a minimum of $2,500 or 7% of gross sales towards local advertising.
What You Get–Training and Support
More Space Place store owners are not required to have a carpentry or designer background. Owners typically assume the role of general/sales manager and employees are hired for product installation.
Franchisees receive a comprehensive start-up package that includes site-selection support, showroom design and specifications, product selection, free owner and personnel on-site training sessions, a product line with thousands of variations and free shipping on initial furniture shipment.
Additional support is provided for furniture selection, start-up, accounting setup, product knowledge, sales training, operations, advertising and marketing. More Space Place also provides on-going and additional training sessions at various times throughout the year. Franchisees further benefit from a powerful CAD system, a product ordering and inventory system, minimal standing inventory, a single-source supplier, new product development and acquisition, group purchasing power and manufacturer product guarantees.
Territory
More Space Place has a continental United States expansion plan of approximately 200 stores under the current concept. A small city and conversion program may be available. The company grants exclusive territories that cannot be changed as long as the agreed upon store quantity is maintained. Development territories may be available to those franchisees qualified to open multiple units.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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