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AARONS FRANCHISES
ANALYSIS
REASEARCH ASSIGNMENT 2
Grade: IV D
LIMA- PERU
2017
1. Information of the franchise
Aaron's offers furnishings such as big screen televisions, couches and
refrigerators for rental or purchase at its stores across North America.
In 1955, R. Charles "Charlie" Loudermilk, Sr. and a business partner borrowed
$500 to purchase 300 folding chairs and rent each of them for 10 cents a day to
auction houses. They made $90 from their first estate sale. The business
evolved to meet the needs of customers
By 1984, Aaron's was the largest furniture rental company in America. To
satisfy growing consumer demand, they accelerated their store expansion by
introducing our Aaron's franchise program in 1992 which grew their investment
opportunities. Today, they are North America's leader in the sales and lease
ownership of name-brand furniture, appliances, electronics and computers.
They are recognized as a Fortune 1000 company serving 1.4 million customers
annually through 12 Woodhaven furniture plants, 17 distribution centers, and
2,000 showrooms.
2. Franchise units
3. Startup costs, ongoing fees and financing
Financial Requirements
Initial Investment: $283,270 -
$852,820
Net-worth Requirement: $550,000
Liquid Cash Requirement: $450,000
Ongoing Fees
Initial Franchise Fee: $15,000 -
$50,000
Ongoing Royalty Fee: 6%
Ad Royalty Fee: 2.5%
4. Franchise support
Training Onsite: ongoing
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings
Toll-Free Line
Grand Opening
Internet
Security
Field Operations
Marketing Support
Ad Slicks
National Media
Regional Media
Absentee Ownership Allowed
Sources:
Mandak, J. (2013). 185,000 spyware emails were sent to Aaron's computers. Obtained from
https://web.archive.org/web/20130301144333/http://www.nbcnews.com/technology
/technolog/185-000-spyware-emails-were-sent-aarons-computers-1C8595813
Shane, S. (2013). The Pros and Cons of Franchising Your Business. Obtained from
https://www.entrepreneur.com/article/226489