Should I open or buy a More Space Place franchise in 2027?
Published June 13, 2026 · Updated June 13, 2026
Yes for a retail-and-design-minded operator who wants a custom-storage-and-space-solutions franchise with a showroom — More Space Place offers a closets, Murphy beds, and home-organization model with large tickets and a space-saving niche at moderate capital. More Space Place, founded in 1990, franchises custom-storage-and-space-solutions businesses offering custom closets, Murphy/wall beds, home offices, pantries, and organization systems — with a showroom plus in-home design and installation, and a distinctive Murphy-bed/space-saving specialty. The 2026 FDD lists a franchise fee around $40,000-$50,000, total Item 7 investment of roughly $200,000 to $400,000, a royalty near 5%-6%, and a marketing fee. Mature units gross $700,000-$1,800,000+, with owners clearing $100,000-$320,000. Its appeal is large project tickets, a Murphy-bed/space-saving niche differentiator, a showroom + in-home model, and durable home-organization demand; the challenges are moderate capital (showroom), in-home/showroom sales, installation, and competition.
The Real Numbers
A More Space Place operates with a showroom (displaying closets, Murphy beds, organization systems) PLUS in-home design and installation, designing and installing custom storage and space-saving solutions. The Murphy-bed specialty differentiates it, with large project tickets driving revenue.
| Line Item | Low | High | Notes |
|---|---|---|---|
| Franchise fee | $40,000 | $50,000 | Per 2026 FDD |
| Showroom buildout | $80,000 | $200,000 | Showroom fit-out |
| Equipment & install tools | $30,000 | $70,000 | Install tools, vehicle |
| Signage & decor | $15,000 | $40,000 | Showroom/brand image |
| Initial inventory/displays | $25,000 | $60,000 | Showroom displays |
| Initial marketing | $15,000 | $40,000 | Lead-gen + showroom |
| Training & travel | $10,000 | $28,000 | Sales/install training |
| Working capital | $25,000 | $60,000 | Project float |
| Total Item 7 | ~$200,000 | ~$400,000 | Per 2026 FDD |
| Royalty | ~5%-6% of gross | ||
| Marketing fee | ~2% of gross |
Revenue reality: mature units gross $700K-$1.8M+ with owners clearing $100K-$320K. More Space Place's edge is large project tickets (custom closets, Murphy beds, and organization systems run $2K-$15K+ per project), a distinctive Murphy-bed/space-saving niche (a differentiated specialty beyond standard closets — appealing for small spaces, guest rooms, multi-use rooms, riding space-efficiency demand), a showroom + in-home model (the showroom drives traffic and credibility while in-home design closes sales), and durable home-organization demand. The trade-offs are moderate capital (the showroom adds cost versus home-based storage franchises), in-home/showroom sales (closing large-ticket sales), installation, and competition (California Closets, Closets by Design, custom-storage companies). Operators who leverage the Murphy-bed niche, drive showroom + in-home sales, and execute installation perform best. The space-saving specialty differentiates it.
Who Wins With This Business
- Capital required: $200K-$400K, with $90,000-$160,000 liquid.
- Time commitment: full-time, showroom-and-in-home-sales operation.
- Skills: design/retail sales, in-home closing, and installation management.
- Geographic fit: suburban homeowner markets with organization/space demand.
- Lifestyle fit: design-and-sales-minded operator.
The winners are design-and-sales-minded operators who leverage the Murphy-bed niche and drive showroom + in-home sales.
Who Loses With This Business
- Operators weak at large-ticket sales (showroom + in-home).
- Those who can't execute/manage installation.
- Owners who underestimate the showroom cost.
- Buyers who don't leverage the Murphy-bed differentiation.
- Those in low-homeowner-density markets.
2027 Market Conditions
- Demand: home organization and space-saving solutions are durable, homeowner-driven.
- Differentiation: Murphy beds/space-saving niche.
- Showroom + in-home: traffic + closing.
- Large tickets: storage projects drive high AUVs.
- Competition: California Closets, Closets by Design, custom storage.
The 90-Day Decision Tree
- Day 1-20: Read the 2026 FDD and Item 19 space-solutions economics.
- Day 21-40: Interview operators; ask about showroom + in-home sales, Murphy-bed mix, install, and net profit.
- Day 41-60: Validate a homeowner market and showroom site.
- Day 61-100: Build the showroom and train.
- Day 101-130: Open and drive leads.
- Leverage the Murphy-bed niche and drive showroom + in-home sales.
- Scale and manage installation.
Alternative Plays
- ShelfGenie / Closets by Design — storage (see fr0981, library).
- More Space Place for Murphy beds + space-saving.
- California Closets — custom closets (in/near library).
- GarageExperts — garage storage (see fr0983).
- Independent custom-storage business — full control, no brand.
- Other home-improvement franchises — adjacent models.
Alternative Entry Paths: Territory, Ownership Structure, and Conversion
More Space Place offers several ownership structures beyond a single-unit franchise. The 2026 FDD shows multi-unit development agreements are available, typically requiring a minimum of three units with a reduced per-unit franchise fee of $35,000–$45,000 and a development schedule of 18–36 months. Existing home-improvement or closet companies can also explore conversion franchising, where an established business rebrands and adopts the More Space Place system for a conversion fee around $20,000–$30,000 — roughly half the standard franchise fee. Territory size varies by market density: in metro areas, a protected territory might cover 150,000–300,000 households, while rural territories can span multiple counties. Semi-absentee ownership is possible if you have a reliable general manager handling showroom operations and installation crews, though the FDD notes that owner involvement in sales and design is typical for the first 12–24 months.
Competitive Positioning vs. Closet and Murphy-Bed Franchises
More Space Place competes directly with California Closets, Closet Factory, and Murphy Bed franchises like Murphy Bed Depot. Key differences emerge in pricing and target customer. California Closets typically requires $300,000–$500,000 total investment with higher-end positioning, while More Space Place’s $200,000–$400,000 range targets mid-to-upper-middle households. Murphy Bed Depot operates with lower investment ($150,000–$250,000) but focuses narrowly on wall beds without the full closet-and-organization line. More Space Place’s advantage is the combination of Murphy beds, closets, and home office systems under one showroom — allowing cross-selling and larger average tickets ($5,000–$15,000 per project). The brand’s national marketing fund (2% of gross sales) supports regional advertising co-ops, which can reduce local lead-generation costs by 15%–25% compared to independent operators.
Realistic Timeline and Seasonal Considerations
From signed franchise agreement to first sale, expect 4–7 months for site selection, build-out, training, and initial marketing. Training at the corporate office in Florida runs 2–3 weeks, followed by 2–4 weeks of in-market support. Showroom build-out costs $80,000–$150,000 of the total investment, with leasehold improvements typically taking 8–12 weeks. Revenue is seasonal: Q2 and Q3 (spring and summer) generate 55%–65% of annual sales, driven by home renovation projects and moving season. Q4 dips 20%–30% from peak, though holiday-related home organization projects provide a modest offset. First-year gross revenue for new units averages $400,000–$600,000, reaching mature levels by year three. Profit margins on materials run 35%–45%, with installation labor adding 20%–30% margin, yielding blended gross margins of 40%–50% before royalty and overhead.
FAQ
What is the typical total investment needed to open a More Space Place franchise? The total investment range is roughly $200,000 to $400,000, which includes the franchise fee of $40,000 to $50,000. This covers showroom setup, initial inventory, equipment, and working capital, though actual costs can vary by location and lease terms.
How much can I expect to earn as a More Space Place franchise owner? Mature units typically report annual gross revenues between $700,000 and $1,800,000, with owner earnings in the range of $100,000 to $320,000. Your actual income will depend on factors like market size, sales volume, and how efficiently you manage installation and showroom operations.
What is the royalty and marketing fee structure? The ongoing royalty is around 5% to 6% of gross sales, and there is a separate marketing fee. These fees support brand advertising, lead generation, and operational support, but exact percentages should be verified in the current FDD.
Do I need a background in home improvement or design to succeed? A retail-and-design mindset is helpful, but prior experience in closets or storage is not required. The franchise provides training on sales, design software, and installation processes, though comfort with in-home consultations and showroom selling is important.
How long does it take to open a More Space Place franchise? The timeline from signing to opening is typically several months, depending on finding a suitable showroom location, completing build-out, and training. Most owners plan for 3 to 6 months, but this can vary based on local permitting and contractor availability.
What makes More Space Place different from other storage or closet franchises? Its focus on Murphy beds and space-saving solutions, combined with a showroom plus in-home design model, creates a niche differentiator. This allows for larger project tickets and a distinct market position versus competitors that may only offer closets or garage systems.
Bottom Line
Open a More Space Place if you want a custom-storage-and-space-solutions franchise with a distinctive Murphy-bed/space-saving niche, large project tickets, a showroom + in-home model, and durable home-organization demand, you're strong at large-ticket sales (showroom + in-home), and you can manage installation. Its Murphy-bed/space-saving differentiation, large tickets, showroom + in-home model, and durable demand are genuine strengths. Skip it if you're weak at large-ticket sales, can't manage installation, or underestimate the showroom cost. Validate Item 19 and operators carefully. For design-and-sales-minded operators who leverage the space-saving niche and drive sales, More Space Place offers a differentiated storage path — the Murphy-bed niche, large-ticket sales, and installation are the keys.
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Sources
- More Space Place Franchise Disclosure Document (2026 filing) — Items 5, 6, 7, 19, 20
- More Space Place official franchise site — investment range and space-solutions model
- Entrepreneur Franchise listings — More Space Place
- IBISWorld — Custom Storage, Closets & Organization in the US, 2026 industry report
- Statista — US home-organization and space-saving market, 2025-2026
- Home-organization and small-space-living trend data 2026
- Franchise Business Review — home-improvement-franchise satisfaction data
- International Franchise Association (IFA) — 2027 Franchise Economic Outlook
- Competing storage concepts (California Closets, Closets by Design, ShelfGenie) data 2026
- US Census — homeowner and home-improvement-spending data, 2025-2026
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