Bed Bath & Beyond launching nationwide franchise program
Bed Bath & Beyond Inc. is looking to grow the retail footprint of its namesake brand via a new model.
The company, which also owns Overstock, Buybuy Baby and a blockchain asset portfolio, said it plans to launch a national franchise system that will allow Bed Bath & Beyond to operate a smaller footprint of corporate stores nationwide along with a complementary franchise network. Franchise documentation is expected to be finalized within six months.
The news comes weeks after Bed Bath & Beyond completed its purchase of the Kirkland’s Home trade name and related brand assets from The Brand House Collective Inc. (formerly Kirkland’s Inc.). The move builds on the two companies' existing investment partnership and accelerates the ongoing conversion of Kirkland’s Home locations to Bed Bath & Beyond Home. The new format, Bed Bath & Beyond Home, made its debut in August in Nashville.
Franchise locations will feature turnkey formats of a traditional Bed Bath & Beyond, including home, kitchen living, storage & organization and a "holiday shoppe," all designed with what the company described as a "neighborhood feel." Approximately 80% of each store’s assortment will be curated by Bed Bath & Beyond, with 20% localized by franchisees to highlight regional products and designers.
“Our goal is to grow Bed Bath and Beyond in the most capital efficient manner,” said Marcus Lemonis, executive chairman of Bed Bath & Beyond. “This system enables local owners to deliver personal service and local flavor while leveraging our national infrastructure, marketing and technology.”
Franchisees will have access to Bed Bath & Beyond’s AI-powered tools and data analytics capabilities, which will enable owners to forecast demand, manage inventory, and optimize merchandising and staffing decisions using real-time insights. They will also gain access to dashboards that measure promotional effectiveness, pricing performance, and local market trends, helping them drive higher sales, reduce waste and enhance customer engagement through data-driven decisions, the company said.
In addition, franchisees will have access to tokenization through the tZERO platform — a blockchain services company with a brokerage component that Bed Bath & Beyond has invested in — to provide capital efficiency, easy equity raises and democratized ownership.
“This approach complements, and in some cases may replace, traditional Small Business Administration financing, giving franchisees more flexibility to raise capital and engage local investors through digital infrastructure,” the company stated.
