The story behind franchising

The story
behind IKEA
franchising

Getting IKEA products into the hands of the many people is a challenge that we love. But we know we cannot do it alone. That is why we work with a business format called franchising. In exchange for a fee we grant rights to other companies to use the

IKEA trademarks, to sell IKEA products and to work with our business methods within a defined territory. We believe that franchising is an effective way to create long-term success with the IKEA Concept.

the-story-behind-franchising-02

Why franchising?

This little shed was the first IKEA warehouse, storing packages until ​the milk lorry picked them up. When Ingvar Kamprad founded the first IKEA business back in 1943 he could never imagine how his business would develop.

In the beginning of the 1980s – with IKEA stores in almost 20 countries and with a plan to keep expanding – Ingvar Kamprad realised that in order to stay true to the IKEA vision of creating a better everyday life for the many people, he needed to protect the unique IKEA Concept.

the-story-behind-franchising-03-left

The many people

To protect the IKEA Concept, Ingvar looked for a system that would always act in the best interests of the IKEA Concept and of the many people. Since he wanted total independence and an ownership structure suited for a long-term perspective, the stock market wasn’t an alternative. Besides – he believed that all the different companies operating under the IKEA Brand first had to build resources before they could expand. This old fashion common-sense proved pretty successful.

So, the IKEA franchise system was established. Today all IKEA stores (except the IKEA Delft store in the Netherlands, which is owned by Inter IKEA Systems B.V.) operate under franchise agreements. Inter IKEA Systems B.V. is the owner of the IKEA Concept and worldwide IKEA franchisor.

In order to live up to our vision of creating a better everyday life for the many people, the franchise format was considered the best way to gradually and long–term secure and drive this vision.

A key to success

To reach more of the many people, the IKEA business is expanding geographically and gradually, always with the low price in focus. This drives sales volumes and contributes to economies of scale.

Inter IKEA Systems B.V. evaluates potential franchisees as well as new and existing markets. Our focus is on reaching the many people, while taking a long-term view on sales and profitability.

the-story-behind-franchising-04-right
the-story-behind-franchising-05

An agreement
that gives access

IKEA franchisees get access to one of the world’s most well-known trademarks. The IKEA trademarks, consisting of the IKEA logo and the IKEA wordmark, are the most important IKEA symbols. The franchise agreement gives the franchisee the right to operate an IKEA store in accordance with franchisor’s systems and methods.

They get access to the IKEA product range. And they get access to the products and services from Inter IKEA Systems B.V., with the systems, methods and solutions to market and sell the IKEA range. This includes the opportunity to take part in the continuous development of the IKEA Concept. Read more about these products and services here.