The IKEA franchise system
Being able to offer IKEA products to as many people as possible is a challenge we love. To ensure the long-term growth and development of the IKEA business we use a franchise system. This provides financial stability, while allowing franchisees to challenge, test and explore new markets and ideas. Together, we continue to develop the IKEA Brand.
As the IKEA business was expanding in the early 1980s, IKEA Founder Ingvar Kamprad was looking for a way to grow the company internationally while maintaining its entrepreneurial spirit and safeguarding the underlying IKEA Concept. He wanted to find a system that would serve the best interests of the IKEA Concept and the people in IKEA markets. After researching the subject thoroughly, he came to the conclusion that a franchising system was the best alternative.
“From the very start, our aim has been to create the greatest possible financial security for employees and for the various groups of IKEA companies.”
Ingvar Kamprad, IKEA Founder
How it works
Potential IKEA franchisees are evaluated by Inter IKEA Systems B.V. If chosen, an agreement is signed that grants the franchisee the right to operate an IKEA store and/or other sales channels in accordance with the IKEA franchise systems and methods. IKEA franchisees pay Inter IKEA Group an annual fee of 3% over their net sales. In return, they get access to the IKEA trademarks. They are also authorised to market and sell the IKEA product range and operate IKEA stores and other sales channels.
Today, all the 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.
Improving the IKEA Brand and offer together
The franchise system enables the IKEA business to grow steadily while developing our concept and laying a solid foundation for the IKEA Brand. Thanks to our continuous growth, we can increase sales and thereby enjoy greater economies of scale. This makes it possible to keep prices low and ultimately, to reach many more people around the world.
Franchising is a system that encourages everyone to contribute and collaborate. While Inter IKEA Systems B.V., is responsible for continuously developing the IKEA Concept and ensuring its implementation in new and existing markets, franchisees provide valuable input based on their consumer and market insights. Together, we improve and develop the IKEA Brand, making it more relevant and inspiring.