Bedshed continues to be one of Australia’s most recognisable and trusted bedding and bedroom furniture brands. With a network of 42 stores – 36 of which are franchise operations – supported by a strong e-commerce platform, we remain committed to delivering quality, value, and exceptional service to our customers. We are also proud to have maintained our 5-star rating on the Australian Franchise Rating Scale™, a reflection of our strong franchise model and operational excellence 1.
Bedshed continues to be one of Australia’s most recognisable and trusted bedding and bedroom furniture brands, with a national network of 42 stores, 37 of which are franchise operations. Supported by an established e-commerce platform and franchise model, we remain committed to delivering quality, value and exceptional service to customers. We are also proud to have maintained our five-star rating on the Australian Franchise Rating Scale™, reflecting the depth of our franchise model and operational excellence.
FY26 was a solid year for Bedshed in a retail environment where customers remained cautious with household spending. The network lifted Business Written Sales, improved EBIT across franchising and company-owned stores, and made progress on the work required to make the store model simpler, more efficient and more attractive for franchise partners.
Network BWS for FY26 were $163.9 million, up 1.8% on the prior year. National campaigns performed well during Black Friday, Boxing Day and the financial year end Stocktake Sale. Increased promotional activity supported sales volumes but required careful margin management. The team responded with cost discipline, close attention to sales mix and continued focus on conversion.
Combined Bedshed operations generated revenue of $26.6 million in FY26, with franchising revenue increasing to $6.2 million and company-owned store revenue of $20.4 million. EBIT performance improved across both parts of the business, with franchising EBIT increasing to $3.0 million and company-owned store EBIT increasing to $1.7 million. Bedshed Franchising achieved an EBIT margin of 48.2%, while company-owned operations achieved an EBIT margin of 8.4%.
The franchising business remains the core of the Bedshed model and continues to be the primary focus for network expansion. During the year, new franchise stores opened in Caringbah (NSW), and Ellenbrook (WA) and the Mackay (QLD), company-owned store transitioned to franchise ownership. As at the end of FY26 the networks stands at 42 stores.
Our company-owned stores generated improved profitability in FY26, supported by operational discipline, margin management and a continued focus on sales conversion. The transition of Mackay to franchise ownership also reinforced our view that Bedshed remains fundamentally a franchise business, with company-owned stores continuing to provide operational insight and flexibility where appropriate.
We made practical progress on initiatives that support better franchisee economics. Product rationalisation, supply chain improvements and store format refinement have reduced initial fit-out costs, simplified stockholding and lowered working capital requirements, while preserving a quality customer offer.
In FY27, Bedshed’s priorities are to grow network-wide Business Written Sales, protect gross margin, improve promotional effectiveness and maintain the health of the franchise network. Our focus remains on growing the franchise network in a measured way toward the ambition of more than 65 stores, where franchisee economics, site quality and operational support are aligned.
I want to thank our team members, franchise partners and suppliers for their commitment throughout the year. Their efforts were central to Bedshed’s performance in a challenging retail environment and will remain important as we continue to build a more resilient platform for franchise growth.
Gavin Culmsee, Bedshed Managing Director
FRANdata Australia is the franchise industry’s number one source for objective information and analysis of Australian franchise systems. The outcome is a performance metric based on a star rating with 5 stars being the highest of ratings. This franchise star rating scale provides an independent and object tool to assist perspective franchisees, advisors and financial institutions make an independent evaluation of the franchise system.
In 2022 after months of interviews and information swapping, Bedshed achieved a 5 star rating making Bedshed the only franchise system in the bedding and home furnishing industry to achieve such a high rating.
