A new company has been created to run the store, Specialized Concept Store (Chester) Ltd.
Bike Factory has been a Specialized stockist for 20+ years.
The store will cover 3,500sq feet on two floors and will use the same designs and fixtures as the recently opened stores in the USA. Specialized bicycles and equipment will be sold exclusively but other products and brands such as locks or lighting can be sold alongside the Specialized range.
"We have a great opportunity with the location and with our history of the brand, Specialized was an obvious choice to partner up with in such an exciting project,” said Dave Quinn, owner of Bike Factory.
Specialized UK MD Richard Hemington said:
"The Specialized brand in partnership with our dealers is ready to make this step and Dave Quinn and his team are ready to establish this for the future. We have no intention to take over existing businesses that are successful with their current store and brand mix. We seek to add outlets in locations where existing dealers feel there is opportunity to do so."
The new store opens in November.