Bed Bath & Beyond Inc. is introducing a new nationwide franchise system in a bid to expand its namesake brand through a capital-light model that blends corporate and franchise ownership.
The company, which also owns Overstock, BuyBuy Baby, and a blockchain asset portfolio — said franchise documentation is expected to be finalised within six months.
The new system will allow Bed Bath & Beyond to maintain a smaller footprint of company-owned stores while rolling out franchise locations across the country.
The announcement follows the retailer’s recent purchase of the Kirkland’s Home trade name and related brand assets from The Brand House Collective, building on an existing investment partnership. That deal accelerated the conversion of Kirkland’s Home stores into Bed Bath & Beyond Home locations, a new format that debuted in Nashville in August.
Franchise stores will feature turnkey versions of a traditional Bed Bath & Beyond, with departments spanning home, kitchen, storage, and a dedicated “holiday shoppe.”
Each store’s assortment will be 80% curated by the company, while franchisees will have flexibility to localise up to 20% of products to reflect regional styles and artisans.
“Our goal is to grow Bed Bath & 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 flavour while leveraging our national infrastructure, marketing, and technology.”
Franchise owners will also gain access to the company’s AI-powered analytics platform to forecast demand, manage inventory, and optimise merchandising and staffing.
Real-time dashboards will measure promotion effectiveness, pricing performance, and local market trends to drive higher sales and improve efficiency.
In addition, franchisees will be able to use tokenisation via Bed Bath & Beyond’s investment in tZERO, a blockchain-based services company.
The feature will offer franchisees alternative financing options to traditional small business loans, allowing for digital equity raises and local investor participation.
The move marks the next phase of Bed Bath & Beyond’s turnaround strategy as it seeks to rebuild its presence after closing all remaining namesake and BuyBuy Baby stores.
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