American Freight Introduces Franchise Model; Awards First Two Franchisees
American Freight, a leading furniture, mattress and appliance retailer, announced its new franchise model in late 2020 just months before awarding its first two franchisees on the same day in April 2021. The company’s franchise program launched after experiencing more than 25 years of proven success in the industry and on the heels of the Franchise Group, Inc. acquisition of the retail concept in 2020.
American Freight opened over 25 new company-owned stores and grew its sales year over year despite challenges from the COVID-19 pandemic in 2020. According to Will Powell, President and CEO at American Freight, the organization developed the processes and skills necessary to replicate this success as it launched the franchise model late last year.
“American Freight is a proven business model with excellent unit-level economics and very reasonable start-up costs,” said Powell. “We’re well established with more than 350 American Freight stores nationwide and are uniquely positioned to grow exponentially in both existing and untapped territories, especially through franchising.”
On April 30, 2021, American Freight started doing just that by awarding franchises to both Rabih Awad and Greg Canzano. Awad will develop three franchised stores around Baltimore, Maryland, while Canzano will open four franchised locations in the greater Austin, Texas market.
American Freight Furniture and Mattress was established in Lima, Ohio in 1994. The company grew to its current nationwide footprint by adding and rebranding nearly 130 former Sears Outlets and more than 30 former FFO Home locations in early 2020. The rebrand expanded American Freight’s product assortment to include furniture, mattresses and appliances.
“We entered the franchise world with our proof of concept in the bank,” said Jim Steger, Director of Franchise Development at American Freight. “Our franchising model is built on a system conducive to franchising and is proven to thrive in good and bad economies. It’s easy to build, quick to open and highly scalable.”
On average, American Freight’s top 25% of stores generate $4,734,945 in gross sales and $855,857 in net income per store.* Exclusive and multi-unit development areas are available and in high demand, and the process to become a franchisee with American Freight takes an estimated six-to-eight weeks. The company requires a minimum net worth of $750,000 and a minimum liquidity of $150,000.
For more information or to inquire about franchising, reach out to Jim Steger at firstname.lastname@example.org or visit OwnAmericanFreight.com.
*This information reflects the Average Gross Sales and Average Net Income for the Top 25% of American Freight company-owned retail businesses which were open for more than a year as of fiscal year end 2020. Of these 43 retail businesses, 15 attained or surpassed the Average Gross Sales and 14 attained or surpassed the Average Net Income described above. We refer you to Item 19 of our Franchise Disclosure Document dated April 30, 2021 for additional information. A NEW FRANCHISEE’S RESULTS MAY DIFFER FROM THE REPRESENTED PERFORMANCE. This is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Offerings made by prospectus only and in compliance with the applicable pre-sale registration and disclosure requirements in your state. ©2021 American Freight®. All rights reserved.
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