Can You Open a Lululemon Franchise in 2025? Profits, Costs & Fees
Lululemon Athletica is a Canadian-American multinational company specializing in athletic apparel, particularly yoga wear. It was founded in 1998 by Chip Wilson in Vancouver, Canada. Initially starting as a design studio and a yoga studio at night, it transitioned into retail operations and has since expanded significantly.
Lululemon’s corporate headquarters is in Vancouver, British Columbia, and it now has a global presence. The brand is known for its high-quality, innovative products, offering a variety of athletic wear, including tops, leggings, sports jackets, and accessories.
Lululemon has expanded its product lines to cater to men, wellness enthusiasts, and even ventured into footwear. The company emphasizes research and development to enhance its offerings and stay competitive, maintaining a focus on innovation, quality, and fostering a sense of community.
While Lululemon began franchising in 2010, it has shifted away from this model, with all stores now corporately owned, and franchising opportunities are no longer available. Currently, the company has around 600 stores globally, all under corporate ownership and management.
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Initial Investment
How much does it cost to start a Lululemon franchise? Lululemon does not offer franchise opportunities currently, as all of its locations are company-owned.
Therefore, it is not possible to start a Lululemon franchise, and there is no associated cost for franchising with the company.
For similar retail franchises, however, the initial investment is on average $258,000.
In comparison, for example, Pro Image Sports (a sports merchandise and apparel store franchise brand) requires an investment upfront of $110,000 up to $615,000 for a franchised store.
Here are a few sports retail franchises in comparison:
Average Revenue (AUV)
How much revenue can you make with a Lululemon franchise? Since Lululemon does not franchise its stores and all locations are company-owned, Lululemon does not publish a Franchise Disclosure Document. Therefore, it does not disclose the average revenue of its stores.
However, a similar sports store franchise makes on average $922,000 in revenue (AUV) per store per year. For example, a Pro Image Sports franchised store makes on average $814,000 in revenue per year.
Frequently Asked Questions
How many Lululemon locations are there?
As of the most recent data, Lululemon has around 600 locations worldwide. All these stores are corporately owned, as the company does not currently offer franchising opportunities.
What is the total investment required to open a Lululemon franchise?
Lululemon does not offer franchise opportunities and therefore, it is not possible to establish the initial investment to start a Lululemon franchise.
However, the total investment required to open a franchised sports store similar to the Lululemon franchise ranges from $6,000 to $615,000.
What are the ongoing fees for a Lululemon franchise?
Since Lululemon does not offer franchises and all stores are company-owned, the ongoing fees such as royalty fees or advertising fees associated with franchising the brand are not readily available.
Yet, similar sports franchises in the industry charge an average of 5% in royalty fees and 2%-7% in advertising fees (e.g. Pro Image Sports).
What are the financial requirements to become a Lululemon franchisee?
All Lululemon locations are company-owned, and the brand does not offer opportunities for independent ownership or franchising. Therefore, it is not possible to meet any financial requirements or apply to become a franchisee with Lululemon.
For retail sports store franchises similar to Lululemon, the average financial requirements for franchise ownership generally include:
- Minimum Net Worth: $1.5 million to $3 million.
- Liquid Capital: At least $250,000 to $500,000.
These ranges vary based on the specific brand, location, and store size, with higher-end brands typically requiring greater financial backing due to the scale of operations and initial investment costs.
How much can a Lululemon franchise owner expect to earn?
Since Lululemon is entirely company-owned and does not operate as a franchise, there is no earning disclosure for a Lululemon franchise.
Now, assuming the average gross sales for a retail sports franchise similar to a Lululemon franchise of $922,000 per store. And assuming a 15% operating profit margin, $922,000 yearly revenue would result in about $138,000 operating profit per year.
Who owns Lululemon?
Lululemon Athletica is a publicly traded company, meaning it is owned by its shareholders. Its stock is listed on the NASDAQ under the ticker symbol “LULU.”
While it was founded by Chip Wilson in 1998, he no longer has a controlling interest in the company. Today, Lululemon is owned by various institutional and individual investors who hold shares of its stock.
Disclaimer
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