Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

In an Oct. 7 press release, Bed Bath & Beyond announced it would roll out a nationwide franchise system, part of its effort to grow after its 2023 bankruptcy. Instead of relying on corporate-owned stores, the company will offer franchisees turnkey locations with centrally curated merchandise, local customization options and participation in e-commerce profits.

The shift comes after Beyond, Inc. — formerly Overstock.com — acquired Bed Bath & Beyond’s brand and digital assets out of bankruptcy in 2023. Beyond rebranded earlier this year as part of a strategy to position itself as a broader home and lifestyle retail company. The retailer has since relaunched Bed Bath & Beyond online and announced plans to expand its physical footprint by turning to franchising as a capital-efficient growth model.

Under the new system, franchisees will operate branded stores while benefiting from corporate’s supply chain, technology and marketing infrastructure. At the same time, owners will be able to tailor some aspects of merchandise and operations to reflect local market preferences. To support financing, Bed Bath & Beyond is also using blockchain-based tokenization on the tZERO platform, an effort designed to make investment in the brand more accessible.

Marcus Lemonis, executive chairman of Beyond, Inc., called the franchise launch a key step in rebuilding Bed Bath & Beyond into a growth brand. “This model allows us to expand quickly without the heavy capital burden of corporate-owned stores, while giving entrepreneurs the chance to be part of one of retail’s most recognized names,” Lemonis said in the announcement.

The company has also been active on the acquisition front. In August, Beyond purchased Kirkland’s Home, a 300-unit specialty retailer, with the goal of combining its footprint with Bed Bath & Beyond to accelerate omnichannel growth. Together, the moves signal an aggressive attempt to regain relevance in the competitive home goods sector and potentially set a model for how other legacy retailers might use franchising to reinvent themselves.

Read the original press release here.

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