Starting a new business is never easy. But once a business is created, many entrepreneurs daydream for a new purpose: franchise (and, of course, the money that comes with it).
Three entrepreneurs who started a business nearly 20 years ago are now realizing that dream. Through a combination of sales innovation, wicked proprietary systems, and good old-fashioned hard work, Amerisleep recently started franchising.
An 'internet gap'
In 2006, three entrepreneurs – brothers Moe AND We celebrate Kittaneh and Joey Holt – opened an online mattress store, Sleep Masters, which sold multiple brands. Moe Kittaneh had recently earned a bachelor's degree in e-business and immediately noticed something missing in the sleep industry.
“I realized there was a void online in the mattress industry,” says Kittaneh, Amerisleep's CFO, “and we were one of the first (companies) to introduce mattresses online.”
In 2007, the trio opened their first retail location in Scottsdale, Arizona. Holt, Amerisleep's COO, says the experience of opening one physical store prepared the team for the various challenges faced by franchisees. Plus, she fulfilled a customer request. “The number one question we would get (from) customers was if we have a location nearby where they can touch and see the product,” Holt says.
Founding of Amerisleep
In 2010, the company introduced its own mattress brand and Amerisleep was born. Kittaneh says that one of the main reasons for the change in tactics was to fOCUS team efforts. “We realized we (had to) focus on one brand; that's when we sold several brands.”
This strategic shift allowed Amerisleep to devote all of its resources and attention to the development and improvement of a distinct product line. It also enabled him innovate more effectively and build a strong, recognizable brand that resonated with consumers. However, the move from multiple brands to manufacturing and selling them was daunting. “It was a big project, but we had a great idea and got it off the ground,” says Kittaneh.
Opening of physical stores
In 2016, as many companies were closing physical locations, Amerisleep began opening them. However, they were not typical mattress stores. Amerisleep locations have 4k TV walls and Dream suiteswhere customers can try a mattress privately.
“It's very different from your traditional mattress firm place, where you walk in and it's just a room full of 50 mattresses,” says Holt. “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
of The covid-19 pandemic wreaked havoc on many business sectors, mainly due to supply chain issues and reduced traffic at retail outlets. However, Amerisleep had a foot in mattress stores with little online presence. The company's robust digital strategy – coupled with fear-driven growth of consumers willing to “buy without trying” — enabled Amerisleep to weather the storm, with the pandemic affecting only a small percentage of its business. “Covid didn't slow us down online,” says Kittaneh, “it was still going well.”
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The start of the franchise
The Amerisleep team decided to franchise in 2023, achieving the dream of many business owners. Benefits for franchisees, the founders say, include lower start-up costs than multiple franchises, an innovative sales approach and, perhaps best of all, no inventory. Amerisleep has seven corporate locations open and is currently in discussions with multiple potential franchisees.
The founders say that the main task of an Amerisleep franchisee is to please the customer and sell. This process is streamlined and efficient, without the headache of managing a warehouse full of inventory — and employment of employees to staff it.
Growing industry
In 2024, the global mattress market revenue is expected to hit 38.97 billion dollars. With an anticipated compound annual growth rate (CAGR) of 4.92% from 2024 to 2028, the market is on track to be valued at around $50 billion in 2028. This growing trend indicates the industry's ability to 'came back and adapted to what CUSTOMERS love and adopt the latest technological developments.
With people focused on comfort, health and overall WELFARE, Kittaneh expects a big increase in the need for high-end mattresses, giving Amerisleep an extra boost on the way to its next goal. “We're going global,” he says. “We're already in Australia and South Korea. We're going to be one of the biggest 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 also supporting their new franchises. A main goal is to refine the company marketing and sales processes to save the franchisee money—savings that can be passed on to the customer.
“From day one of opening their doors, they've been able to take advantage of the great digital presence we built before opening our first retail experience,” says Kittaneh. “As an entrepreneur and an e-commerce person, I would like to have a business without inventory and focus only on selling and marketing – and that's what we have here.”