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Updated RecentlyIKEA vs Buddy's Home Furnishings Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of IKEA vs Buddy's Home Furnishings including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | N/A | $385,166 - $912,594 |
| Franchise Fee | N/A | $25,000 |
| Royalty Fee | - | 6% |
| Advertising Fee | - | $500/mo. |
| Year Founded | - | 1965 |
| Year Franchised | - | 2007 |
| Term Of Agreement | - | - |
| Term Of Agreement | - | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | When selecting franchisees, Inter IKEA Systems B.V., among other things, evaluates the following: -experience -local market knowledge and presence (able to demonstrate ability to establish and operate IKEA stores nationally) -corporate culture and values -financial strength and ability to carry through the investment penetrating a country in full and in a large-scale retail environment format | - |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | -/- | -/- |
| Start-up Costs | -/- | -/Yes |
| Equipment | -/- | -/Yes |
| Inventory | -/- | -/Yes |
| Receivables | -/- | -/- |
| Payroll | -/- | -/- |
Training & Support |
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| Training | - | On-The-Job Training: 60+ hours Classroom Training: Up to 42 hours |
| Support | - | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
| Marketing | - | Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
| Operations | - | - |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | - | Yes |
| International Expansion | Yes | - |
Company Overviews
About IKEA
Franchises are granted by Inter IKEA Systems B.V. as part of a detailed expansion plan. Serious applicants are carefully researched and evaluated and franchises are granted only to companies and/or individuals with strong financial backing and a proven record in retail.
When selecting franchisees, Inter IKEA Systems B.V., among other things, evaluates the following:
- experience
- local market knowledge and presence (able to demonstrate ability to establish and operate IKEA stores nationally)
- corporate culture and values
- financial strength and ability to carry through the investment penetrating a country in full and in a large-scale retail environment format
About Buddy's Home Furnishings
Buddy’s Home Furnishings is
the third largest Rent-To-Own (“RTO”) furniture, appliance, electronic
and computer provider in the United States. Buddy’s was founded in 1961
in Tampa, Florida and for the first 30 years of existence the Company
operated 21 stores in the Greater Tampa Area. Over the past five years,
Buddy’s has aggressively expanded its footprint by adding new
company-owned and franchised stores outside of its home area. As of July 1, 2015, 103 franchise, 54 company, and 45 partnership stores located
in the South, Southeastern and Southwestern regions of the U.S. The
Company plans to continue this rapid growth over the next several years
by opening new company-owned stores, acquiring independently operated
RTO stores and franchising stores.
The total investment necessary to begin operation of a Buddy’s Home Furnishings retail business is $385,166 to $912,594. This includes
$100,860 to $243,510 that must be paid to the franchisor or an
affiliate. If you enter into a Development Agreement, your investment to
begin operation of your first Buddy’s Home Furnishings retail business
will be as described above (minus the initial franchise fee for the
first Buddy’s Home Furnishings retail business that will be paid as part
of the development fee under the Development Agreement), and you will
pay the franchisor a development fee due in connection with signing the
Development Agreement. The development fee will be $25,000 for your
first Buddy’s Home Furnishings retail business to be developed under the
Development Agreement and 40% of the initial franchise fee for each
additional Buddy’s Home Furnishings retail business to be developed
under the Development Agreement. You must commit to develop a minimum of
two Buddy’s Home Furnishings retail businesses under the Development
Agreement.