October Franchise of the Month
This month’s featured business is NOT for everyone. First, they really prefer either experienced business owners (and preferably multi-unit FRANCHISE owners) or management executives with SERIOUS chops. Secondly, the investment level is likely around $650K – with item 7 showing a range of $350K to $840K.
But here’s the WOW factor. The franchise currently has over 340 locations open and operating – with just 25 franchisees! Yup. Two of their franchisees have over 80 locations open – yet they started as simple multi-unit owners. Most owners have 3-5 locations on average. In fact, there are only 2 single unit operators in their system. So, this is a big scalable opportunity for big players.
They are the fastest growing rent-to-own franchise in America and sit very prominently in the $11.1 billion rent-to-own industry. This business is a community-focused retail business – and they walk their talk with over 37 corporate stores and plans to build more when they exceed 370 stores open. They will always strive to maintain 10% of open locations as corporate stores. At the rate they are growing, adding 70 locations last year and plans for at least that this year – this will be an exciting brand to be part of.
Massive and deep. The combined experience of over 123 years in the space – with almost everyone on the team having over 20 plus years of experience in the industry.
Benefits of This Business Model
- Tax Savings. Unique ability to apply accelerated depreciation rules – not insignificant allowing one to offset VERY large tax liabilities
- Incredible unit economics – see item 19
- Very fast ramp – and no royalties for the first 6 months
- The business does extremely well in recessions
- The business opens in a low to middle-income location, resulting in lower rental costs for your 4-6,000 SQ Ft location
- This business works in small, medium, and large trade areas
- A very experienced merchandising team that will buy your inventory for you – at zero mark-ups and at ZERO additional cost beyond your royalty (6%)
- Incredible purchasing program including an established open credit facility and negotiated rates and extended warranties
- 60 plus years of proven success
- Low labor model – around 5 employees per location
- Monthly recurring revenue
If this sounds like it would appeal – reach out to us soon so we can check your territory availability. Much of the southeast is sold out.