Starting a new business is never easy. But once a business is started, many entrepreneurs dream of a new goal: franchising (and, of course, the money that comes with it).
Three entrepreneurs who started a business nearly 20 years ago are making that dream come true now. Through a combination of sales innovation, lean proprietary systems, and old-fashioned hard work, Amerisleep recently began franchising.
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An “online gap”
In 2006, three entrepreneurs, brothers Moe and Firas Kittaneh and Joey Holt, opened an online mattress store, Sleep Masters, which sold more brands. Moe Kittaneh had recently earned a bachelor’s degree in e-business and I immediately noticed that there was something missing in the sleep industry.
“I realized there was a gap online in the mattress industry,” says Kittaneh, chief financial officer of Amerisleep, “and we were one of the first [companies] to introduce mattresses online.”
In 2007, the trio opened their first location in Scottsdale, Arizona. Holt, COO of Amerisleep, says the experience of opening a physical store prepared the team for the various challenges franchisors face. Furthermore, he satisfied the customers’ request. “The number one question we would get [from] customers was whether we had a location nearby where they could touch and see the product,” Holt says.
Founder of Amerisleep
In 2010, the company introduced its own brand of mattresses and Amerisleep was born. Kittaneh says this is one of the main reasons for changing tactics was to concentrate the team’s efforts. “We noticed ourselves [needed to] focus on one brand; back then we sold different brands.”
This strategic shift allowed Amerisleep to dedicate all of its resources and attention to developing and improving a singular product line. It also allowed it to innovate more effectively and build a strong, recognizable brand that resonated with consumers. However, transitioning from multiple brands to producing and selling your own products was daunting. “It was a huge project, but we had a great idea and made it happen,” Kittaneh says.
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Opening of physical stores
In 2016, as many companies closed physical locations, Amerisleep began opening them. However, they were not your typical mattress stores. Amerisleep locations feature 4K TV walls and Dream Suites, where customers can try out a mattress in private.
“It’s very different from the traditional kind of place where you walk in, you walk in, and it’s just a room full of 50 mattresses,” Holt says. “Sometimes it can feel weird and uncomfortable to lie on a mattress with people looking at you, so we try to focus on the customer experience.”
Pandemic effect
The Covid-19 pandemic has devastated numerous business sectors, primarily due to supply chain issues and decreased foot traffic in retail stores. However, Amerisleep had an advantage over mattress stores with little online presence. The company’s robust digital strategy — along with a fear-fueled surge in consumers willing to “buy without trying” — has allowed Amerisleep to weather the storm, with the pandemic affecting only a small percentage of its business. “Covid didn’t slow us down online,” Kittaneh says, “we were still doing well.”
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Start of franchising
The Amerisleep team has decided to open a franchise in 2023, making the dream of many entrepreneurs come true. Benefits for franchisees, the founders say, include lower startup costs than many franchises, an innovative sales approach and, perhaps best of all, no inventory. Amerisleep has seven corporate locations open and is currently in discussions with several potential franchisees.
The founders say that the main job of an Amerisleep affiliate is to satisfy the customer and sell. This process is simplified and streamlined, eliminating the headaches of managing a warehouse full of inventory and hiring employees to staff it.
Growing industry
In 2024, the global mattress market revenue is expected to reach $38.97 billion. With a projected compound annual growth rate (CAGR) of 4.92% from 2024 to 2028, the market is on track to be worth approximately $50 billion in 2028. This upward trend demonstrates the industry’s ability to recover and adapt to consumer desires, as well as adopting the latest technological developments.
With people focusing on comfort, health and overall well-being, Kittaneh predicts a big jump in the need for premium mattresses, giving Amerisleep an extra boost on the road to its next goal. “We’re going global,” she says. “We are already present in Australia and South Korea. We will become one of the largest mattress franchises in the world.”
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Customer experience and support
For now, the founders are focused on creating the best possible customer experience while supporting their new affiliates. One of the main goals is to refine the company’s marketing and sales processes to save affiliates money, savings that can be passed on to the customer.
“Since the first day [of] by opening their doors, they can benefit from the expansive digital presence we’ve created before we even open our first retail experience,” says Kittaneh. “As an entrepreneur and e-commerce person, I would love to have an inventory-free business and just focusing on sales and marketing – that’s what we have here.”