IKEAs ability to operate profitably is grounded in the companys business model. Since it is a franchise, IKEA relies heavily on the yearly franchise fees paid by its franchisees to maintain its business. They also make money by selling wholesale quantities of products and retail catalogs to independent franchisees. IKEA is a Swedish furniture and home goods retailer famous for its flatpack furniture, kitchen appliances, and decorative items. The company also generates revenue from the sale of flatpack furniture and the fact that its brickandmortar locations and userfriendly online shops are unlike any others in the industry.