#SAFranchiseFriday featuring The Bed Shop

BACKGROUND
Dynamic Bedding (Pty) Ltd is the franchisor and exclusive supplier to The Bed Shop franchise network, which was established in recognition of a market need for a dedicated channel to market in the retail bedding industry. The first franchise store was opened in Bloemfontein in 1994 and today Dynamic Bedding (Pty) Ltd is the largest specialist bed retailer in southern Africa.

The philosophy envisaged by Dynamic Bedding has never changed, “To deliver a quality product, direct from the factoryto the public on a national basis, at the best possible price.”

To fulfill the group’s vision, The Bed Shop franchise concept was created to provide a dedicated, nationwide distribution network. Today, with 100 franchise outlets and agencies, Dynamic Bedding is the biggest factory-to-market bedding specialist franchise in South Africa.
THE CONCEPT 

Every outlet has its own distinct ‘flavour’ designed around the particular needs of their specific trading environment, but what really sets The Bed Shop apart is their ability to adapt to changing customer needs and, on short notice, to produce made-to-order, custom products — something no other bedding retailer in South Africa can do.

The Bed Shop boasts a comprehensive range of the most affordable quality base and mattress sets available in South Africa. At their manufacturing facility located in Krugersdorp, Gauteng, Dynamic Bedding produces a range of affordable, quality beds that incorporate the latest technology and adhere to international standards and specifications. Their extensive bedding range includes, amongst others, zoned beds with full back support, turn-free mattress technology, pillow tops including built-in Euro comfort tops, multi-layered high-density foam, and pocketed spring beds.

FRANCHISOR SUPPORT
The franchisor’s operational planning department assists franchisees by researching new store locations, designing the store formats and preparing budget and financial projections for each site. Once an outlet is open for business, franchisees can call on their dedicated area representative for operational support, should the need arise.

The franchisor engages in a variety of marketing activities, including digital marketing, national promotions and individual store campaigns. National promotions running over two month-ends typically incorporate national newspaper adverts, digital campaigns, in-store promotions and promotional pamphlets.

At store level, franchisees are encouraged to build awareness in their local communities through outdoor marketing activities and participating in mall shows and expos that give them the opportunity to engage with potential customers. Where necessary, franchisees can call on the franchisor for support with their local marketing initiatives.

FRANCHISEE PROFILE
Applicants should have a good understanding of the retail environment, excellent business acumen, a professional approach to business and be enthusiastic about providing excellent customer service. Ideal candidates will have the ability and capital to own and operate five stores in the long term.

SNAPSHOT
HISTORY
Founder: Dynamic Bedding (Pty) Ltd
Year founded: 1994
Area of origin: Krugersdorp, Gauteng
CEO: Jade Cole

NETWORK
1st SA franchise opened: 1994
Number of SA outlets: 87

FRANCHISE AGREEMENT
Management fee: None
Marketing fee: 3% of turnover
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R325 000
Franchise joining fee: R25 000
Working capital required: R150 000
TOTAL average set-up cost: R500 000
Average monthly turnover: R200 000
Achievable gross margins: 40%

WANT TO KNOW MORE?
Contact Kurt Loggenberg on +27 11 762 1464 or kloggenberg@thebedshoppsa.co.za
www.thebedshoponline.co.za