Footwear business Accent Group has revealed it will end its franchise model for The Athlete’s Foot brand within five years and will not renew franchise agreements at their expiry.

The multi-brand business reports its ongoing franchise acquisition strategy “has driven significant operational efficiency and growth for the business over the last six years”.

So far the business has acquired 73 TAF stores. It announced it will not renew the agreements of the remaining 62 franchise territories. The agreements are set to expire over the next five years.

The group projects integration of the stores could add an incremental $170 million to owned sales annually. This forecast is based on FY23 franchise sales.

Accent will fund acquisition of the stores from the resulting cashflow and existing debt facilities.
In its half year 2024 results, the group revealed TAF has performed well. It boosted profit margins by increasing the mix of distributed and vertical brands.

The Athlete’s Foot is the outlier in the Accent Group as the only franchise in a portfolio that includes Skechers, Hype DC, Platypus, Hoka, Dr Martens, Vans, Glue, Stylerunner and Nude Lucy.

During H1 the Accent Group opened 72 new stores, taking its footprint to 888 stores.