Since it opened in 2001, LoveSac has expanded to more than 20 stores across the country, having downsized its nationwide franchise operation in a company reorganization. As a result, each LoveSac franchise store is more profitable than ever, generating a loyal customer base by strong word-of-mouth recommendation. LoveSac franchisees become involved in a company that thrives and grows on the reputation of its products and service. Having never used traditional advertising, the LoveSac brand has relied on the quality and comfort of its unique media room and TV room furniture, as well as the celebrity of its founder, Shawn D. Nelson, to continually expand.
Full Franchise Information
LoveSac has one of the more interesting backstories in business lore. The story dates back to 1995, when Shawn David Nelson created an oversized beanbag and proceeded to bring it with him everywhere, even becoming known for his tagalong piece of furniture. A few years later, he began selling similar pieces, refining the concept. Nelson opened his first store in 2001 and grew quickly. He has since continued to grow the company, first to more than 70 stores, before streamlining the company and closing some locations.
Lovesac Franchise Cost / Initial Investment / Lovesac Franchise Income
The franchise fee to open a LoveSac store is $50,000, with a total estimated investment of $132,800. An 8% royalty fee on monthly gross receipts is paid to the company. A LoveSac franchise furniture location generates an estimated $100,000 to $500,000 in annual profits.
Lovesac Business Opportunities: Other Information
In 2005, LoveSac founder Shawn Nelson won Richard Branson’s TV show Rebel Billionaire, taking home $1 million and spending three months as president of Branson’s Virgin Worldwide. Nelson ultimately decided, however, to leave Virgin and return to run LoveSac.