How to Finance a More Space Place Franchise: Murphy Bed Showrooms
By Chris Cornella
A More Space Place franchise loan pays for a specialty home furnishings store built around wall beds, often called Murphy beds, along with custom closets, home offices and other space-saving storage. Because the business pairs a design showroom with custom orders, measuring and in-home installation, the financing questions go beyond rent and fixtures to include display models, installation vehicles, order deposits and the timing gap between a sale and a finished job.
US Professional Funding is not affiliated with, sponsored by or endorsed by More Space Place; the name is used only to describe the business. Fees, investment ranges and requirements come from the franchisor’s Franchise Disclosure Document (FDD) and can change. Loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so have a franchise attorney and an accountant review the current FDD and franchise agreement with you.
More Space Place Franchise Loan at a Glance
- Concept: showrooms that design, sell and install wall beds, custom closets, home offices and related storage furniture.
- Roots: began in Clearwater, Florida, as a retailer of Murphy beds and other folding beds, and later joined a larger closet and storage franchise organization.
- Customer: homeowners, condo owners, retirees and others who want a guest room, office or hobby space to do double duty.
- Franchise fee, royalty and investment: disclosed in Items 5, 6 and 7 of the FDD; we could not confirm current figures from the franchisor’s own published materials.
- SBA Franchise Directory: listed as “More Space Place” under code S2504, with a note about lease documents when real estate secures the loan.
- Main financing routes: SBA 7(a), conventional term loans, equipment and vehicle financing, and working capital lines.
What Is More Space Place?
More Space Place sells furniture that solves a square-footage problem. Its signature product is the wall bed: a bed that folds up into a cabinet so a room can serve as an office, den or craft room by day and a guest room at night.
The brand started in Clearwater, Florida, grew through franchised stores and later became part of a franchisor that also designs and installs custom closets, garage storage and pantry systems, widening the product line a franchisee can sell.
How the sale works. A typical customer visits the showroom, tests display beds, meets with a designer, and then schedules an in-home measurement. The order is built to fit the room, finished in the chosen material and installed by the store’s crew. That sequence means revenue arrives in stages, with deposits up front and the balance at installation.
Possible operating formats. Closet and storage franchise systems have used two broad models: a store with its own production shop that cuts and assembles components, and a showroom-only store that sells products made elsewhere in the system. Ask the franchisor which formats the current FDD offers, because a production shop changes your real estate, equipment and labor budget dramatically.
How lenders view the concept. Lenders see a high-ticket, design-driven retail niche. Custom orders with deposits are a plus; reliance on a few designers, long sales cycles and sensitivity to housing activity are watch points.
More Space Place Franchise Costs
Build every number in your loan request from the current FDD and from quotes for your own site and market.
Initial franchise fee. Item 5 discloses the fee, any territory-based variation, when it is due and whether any portion is refundable. In a More Space Place franchise loan, the fee is an intangible cost funded from your cash injection or included in an SBA 7(a) loan.
Showroom build-out. A wall bed showroom must let shoppers open and close beds, sit at a desk and picture a finished room. Expect partition walls to create room vignettes, flooring, lighting, a design consultation area and a small back room for samples and supplies. Leasehold improvements are often the largest single cost in a showroom-only format.
Display inventory. Working display models are the store’s sales tools. Budget for a mix of bed styles, mechanisms and finishes, plus desk, shelving and closet displays. Ask whether the franchisor requires a specific display package and how often displays must be refreshed.
Production equipment, if applicable. A production format adds panel saws, edge banders, drilling equipment, dust collection and a light-industrial space.
Vehicles and installation tools. Finished units are heavy and must be delivered and installed. A box truck or cargo van, dollies, lifts, power tools and design software or tablets for in-home measurements belong in the budget.
Working capital. Item 7 includes “additional funds” for an initial period. A new store pays rent, payroll and marketing while early orders move from deposit to installation, and lead generation for a considered purchase can take time to build.
Item 7 line items to map into your loan budget:
- Initial franchise fee
- Lease deposits and rent before opening
- Showroom leasehold improvements and design
- Display beds, room vignettes and sample materials
- Production equipment and shop setup, if your format includes it
- Delivery vehicle and installation tools
- Signage, computers, design software and point-of-sale technology
- Training travel, insurance, licenses and permits
- Grand opening and local advertising
- Additional funds for the initial operating period
The totals you show a lender should tie back to the Item 7 range for the format you are opening.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing. Item 6 lists the royalty, any marketing or brand fund contribution and any minimum local advertising spend. These come off the top of sales before debt service, so lenders subtract them when they size your loan.
Product costs and supply. If you buy components or finished units from the franchisor, an affiliate or another franchisee in the system, your margin depends on that pricing and on freight. Item 8 explains required and approved suppliers.
How lenders use these numbers. A lender starts with projected sales, subtracts materials, installation labor, rent, royalty and marketing, and compares what is left with your proposed loan payments.
Franchisor Requirements for New Owners
We could not verify More Space Place’s current net worth, liquidity or experience requirements from the franchisor’s own published materials. Ask the franchisor for its current standards and confirm them against the FDD. Furniture and home-improvement franchisors generally look for owners who can fund the cash injection with reserves left over, lead a sales-driven team, manage installers and follow the brand’s design process.
The approval process. Expect discovery calls, the FDD, a financial and background review, territory discussions and final approval.
Ways to Own a More Space Place
Opening a new showroom. A new store means a territory award, a lease, build-out, display installation and a ramp-up while you build leads and referrals. Our page on retail start-up financing explains how lenders structure these projects.
Buying an existing store. A resale gives a lender real sales, margin and backlog data to underwrite, and you inherit trained installers and a customer list. The franchisor must approve the transfer, and the lease must be assigned. Read about buying a franchise resale and our retail business acquisition loans.
Financing Options for a More Space Place Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, the SBA 7(a) loan program is a natural fit. A single loan can combine the franchise fee, showroom build-out, displays, vehicles, equipment and working capital.
SBA 504 loans. The SBA 504 loan program is built for owner-occupied real estate and long-lived equipment. It can fit an owner who buys a building for a showroom with a production shop, or who adds heavy production machinery.
Conventional term loans. Borrowers with strong liquidity, collateral or an existing business may consider conventional business loans, especially for a resale with clean financial statements.
Equipment and vehicle financing. Delivery trucks, panel saws, edge banders and design hardware can be financed on their own, keeping your cash free for displays and marketing. See our retail equipment financing and leasing.
Working capital and lines of credit. Working capital is easy to underfund in a More Space Place franchise loan. Custom orders create a gap between buying materials and collecting final payment, and home-show seasons or seasonal resident traffic can bunch demand. A revolving line helps bridge those timing swings. Learn about retail working capital and lines of credit.
Seller financing on resales. A selling owner may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules can limit how they are structured and repaid.
SBA Loans for More Space Place Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. SBA lenders generally require a brand to be listed before making an SBA-backed loan to one of its franchisees, but a listing never approves an individual borrower.
The brand’s directory listing. More Space Place appears under code S2504. The directory note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease and Consent and Agreement of Lessor may not be executed.
What the note means. Franchisors often use lease documents that let them take over a location if the franchise ends. When the borrower owns the property and pledges it as collateral, those documents can conflict with the lender’s lien, so the two documents named in the note should not be signed. If you lease your showroom and no real estate secures the loan, the note generally does not affect your deal, although your lender will still review the full lease package.
The SBA 7(a) program maximum is currently $5 million, and program rules can change.
How Lenders Evaluate a More Space Place Deal
Credit, net worth and liquidity. Lenders review credit, tax returns and your personal financial statement, and they want a documented injection with reserves left after closing.
Sales and management experience. In-home sales, interior design, cabinetry, remodeling or furniture retail experience counts. So does managing installers and scheduling jobs.
Business plan and projections. Build projections around showroom traffic, lead-to-appointment and appointment-to-sale conversion, average project size, materials cost, installation capacity and the lag between deposit and final payment. Show a ramp-up instead of mature volume in the first months.
The FDD and franchise agreement. Lenders reviewing a More Space Place franchise loan read Items 5, 6, 7, 8, 10, 17, 19 and 20. Item 19 shows whether the franchisor provides financial performance representations, and Item 20 shows outlet openings, transfers and closures. Our article on using the FDD in a franchise loan request explains what to pull out.
Site and lease. Lenders want a lease term that covers the loan term, plus renewal options. For a showroom, visibility, parking and signage rights matter; for a production format, loading access and zoning do. Our retail store lease article covers the clauses to negotiate.
Real-World Scenarios
A remodeling pro opening a showroom. A former kitchen and bath designer opens a showroom-only store. An SBA 7(a) loan covers the build-out, displays, a delivery van and working capital, while the plan models a gradual build in design appointments.
A buyer taking over an established store. A buyer purchases a store with a trained crew and a steady referral base. The lender underwrites historical cash flow, the seller carries a small subordinate note, and the plan accounts for deposits on open orders.
Multi-Unit Growth and Development Agreements
Some owners add a second showroom in a neighboring market or expand a territory once the first store is stable. Lenders typically want the first location to show consistent cash flow before financing another, and they underwrite the combined business, including shared installers and vehicles. If the franchisor offers multi-unit or development rights, the FDD will describe any fees and schedules. Commit only to a pace you can fund without draining reserves.
Common Mistakes to Avoid
- Choosing a format without pricing the production equipment and space it requires
- Projecting cash flow without the gap between deposit and installation
- Signing a lease shorter than the loan term
- Treating customer deposits on a resale as the seller’s money instead of a liability
Review more retail store loan mistakes that slow down approvals.
Next Steps to Finance Your More Space Place Franchise
Step 1: Request the current FDD. Review Items 5 through 8, 10, 17, 19 and 20 with your attorney and accountant.
Step 2: Confirm the format and requirements. Ask which showroom and production options are available in your territory, and get current net worth, liquidity and experience standards in writing.
Step 3: Secure a site. Look for visibility, parking and lease terms that match the loan term.
Step 4: Estimate payments. Try our SBA loan calculator for planning-only estimates, which are not an offer or approval.
Step 5: Build the plan. Gather build-out, display, vehicle and equipment quotes and monthly projections.
Step 6: Apply and close. Coordinate loan closing with franchisor approval, lease signing and training dates.
More Space Place Franchise Loan FAQs
How much does a More Space Place franchise cost?
The estimated initial investment appears in Item 7 of the current FDD and depends on format, market and site. Request the latest FDD for the current range.
What are the franchise fee and royalty?
They are disclosed in Items 5 and 6. We could not confirm current amounts from the franchisor’s own published materials.
Is More Space Place eligible for SBA financing?
Yes, the brand is listed on the SBA Franchise Directory under code S2504. Each borrower must still meet SBA and lender requirements.
What does the SBA directory note mean?
It applies only when real estate where the business operates secures the loan; then the named lease assignment and landlord consent documents should not be signed. Most leased showrooms are not affected.
How much liquid capital do I need?
The franchisor sets its own minimums, and lenders need a documented injection plus reserves. Ask the franchisor for current figures.
Can I finance the delivery truck separately?
Yes. Vehicles, production machinery and design hardware can often be financed with equipment loans or leases.
Can I buy an existing store?
Yes, when one is for sale and the franchisor approves the transfer. Historical financials and the order backlog give a lender more to underwrite.
Does the franchisor offer financing?
Item 10 discloses any franchisor or affiliate financing. Most owners use SBA or conventional loans.
How long is the franchise term?
Term, renewal and transfer conditions appear in Item 17. Lenders compare the term with the loan term.
What documents do I need to apply?
Tax returns, a personal financial statement, a résumé, the FDD and franchise agreement, a lease or letter of intent, quotes for build-out, displays and equipment, and a business plan with projections.
Final Thoughts
More Space Place sells a focused, high-ticket product that solves a real space problem, and its SBA Franchise Directory listing opens the door to SBA financing. A strong More Space Place franchise loan request rests on the current FDD, a clear choice of format, realistic materials and installation costs, and enough liquidity to carry the store through its first order cycles.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing programs and retail business loans.
