Should I open or buy a More Space Place franchise in 2027?
Everyone Told Me More Space Place Was a "Closet Franchise." They Were Wrong.
Look, I've spent 25 years as a CRO watching franchisees buy into brands they don't actually understand. They see "custom storage" and think "Closet Factory knockoff." They're dead wrong. More Space Place isn't a closet franchise — it's a space-saving solution business with a Murphy-bed specialty that most operators sleep on.
And in 2027, that's exactly why you should care.
Let me kill the conventional wisdom first: No, you don't need to be a closet salesman to win here. The winners aren't the guys who know particle board — they're the ones who understand in-home design sales and showroom traffic conversion. The losers? The ones who think a showroom is just a fancy storefront.
It's not. It's a $80,000-$200,000 commitment that either prints money or bleeds it.
The Real Numbers That Matter
Founded in 1990, More Space Place runs on a custom-storage-and-space-solutions model: custom closets, Murphy/wall beds, home offices, pantries, and organization systems — all sold through a showroom plus in-home design and installation. The 2026 FDD tells you the price of admission: franchise fee $40,000-$50,000, total Item 7 investment $200,000-$400,000, royalty 5%-6%, and a marketing fee.
Mature units gross $700,000-$1,800,000+, with owners clearing $100,000-$320,000.
Here's the breakdown that actually matters:
| Line Item | Low | High |
|---|---|---|
| Franchise fee | $40,000 | $50,000 |
| Showroom buildout | $80,000 | $200,000 |
| Equipment & install tools | $30,000 | $70,000 |
| Signage & decor | $15,000 | $40,000 |
| Initial inventory/displays | $25,000 | $60,000 |
| Initial marketing | $15,000 | $40,000 |
| Training & travel | $10,000 | $28,000 |
| Working capital | $25,000 | $60,000 |
| Total Item 7 | ~$200,000 | ~$400,000 |
| Royalty | ~5%-6% of gross | |
| Marketing fee | ~2% of gross |
The edge? Large project tickets — custom closets, Murphy beds, and organization systems run $2,000-$15,000+ per project. The Murphy-bed/space-saving niche is a genuine differentiator: small spaces, guest rooms, multi-use rooms — that's the demand driver.
The showroom + in-home model combines retail credibility with consultative closing. And home-organization demand is durable as long as people have closets.
The trade-offs? Moderate capital (that showroom isn't free), in-home/showroom sales (you have to close), installation management (you can't outsource competence), and competition (California Closets, Closets by Design, custom-storage companies). The operators who leverage the Murphy-bed niche, drive showroom + in-home sales, and execute installation are the ones who clear $192K on $1.2M revenue after materials (36% = $432K), install/sales labor (22% = $264K), showroom/rent (12% = $144K), and royalty/marketing/opex (14% = $168K).
Weak sales execution? The showroom cost eats you alive.
Who Wins, Who Loses
Winners: design-and-sales-minded operators with $200K-$400K capital and $90,000-$160,000 liquid who are full-time, showroom-and-in-home-sales focused, with skills in design/retail sales, in-home closing, and installation management, operating in suburban homeowner markets with organization/space demand.
Losers:
- 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 Reality
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.
Your 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.
The FAQ Nobody Asks But Everyone Needs
How much does a More Space Place owner make? $100,000-$320,000 on $700K-$1.8M+ revenue, driven by large project tickets (closets, Murphy beds, organization). Profitability depends on showroom + in-home sales, the Murphy-bed niche, and installation. The large-ticket, differentiated model supports solid economics — but the showroom adds capital versus home-based storage franchises.
What's the Murphy-bed/space-saving differentiation? A distinctive space-saving specialty (Murphy/wall beds) beyond standard closets — for small spaces and multi-use rooms. As homes get smaller and rooms multi-purpose (guest room + office), demand for space-saving solutions (Murphy beds that fold away) grows.
This is a genuine differentiator that standard closet companies don't address as well.
Why have both a showroom and in-home design? The showroom drives traffic and credibility; in-home design closes large-ticket sales. Customers want to see products first then get a custom in-home solution. The dual approach supports large-ticket sales — but the showroom adds capital.
What is the biggest challenge? Large-ticket sales (showroom + in-home) and showroom cost. Success depends on closing large-ticket sales, managing installation, and the moderate capital includes the showroom cost (versus home-based storage franchises). Competition also matters.
The differentiation and showroom help — but large-ticket sales execution is the decisive factor.
Is it a good multi-unit play? Possibly — but each unit's showroom adds capital ($200K-$400K), so validate economics. The large tickets and Murphy-bed niche support growth, but multi-unit requires strong per-unit sales and capital.
Here's my punchline: More Space Place isn't a closet franchise — it's a space-saving solution business with a Murphy-bed moat that most operators ignore. In 2027, the winners will be the ones who understand that the showroom is a sales engine, not a cost center. The losers? The ones who think they're buying a closet franchise.
*Want the rest of the playbook? I break down these franchise economics weekly at PULSE / CRO Syndicate — where operators stop guessing and start scaling.*
*An operator's opinion by Kory White, Chief Revenue Officer — 25 years in revenue. More at PULSE · CRO Syndicate*