What it takes to succeed at RTO
Do you have what it takes to buy a rent-to-own franchise? According to Todd Evans, vice president in charge of Rimco Franchise Information, what rent-to-own franchisors look for in prospective franchisees are entrepreneurs: people who have been successful in their own businesses and have worked hard for every dollar. they have. As an old and established company, Aaron’s and its Rimco subsidiary can afford to be picky about prospective franchisees. Evans notes that after the dot-com crash, many young investors who had managed to keep their savings intact came to him to buy a rent-to-own franchise. Most of these people were rejected: they had earned their money sitting inside a cubicle and manipulating computers. What franchisors want in store owners are people with street smarts, who have scars from dealing in the real world, and who have accumulated real-life experience. You can’t get that in a cubicle. A person without real business experience will not get very far in leasing.
On the other hand, Tyner Reeves of Discover Rims franchise information points out that his company’s philosophy is to work as fast as possible and keep the most important thing in mind: making sure the franchise owner is making good money. . Discover Rims is one of the newest companies in the rent-to-own custom rims and tires field, with two company-owned stores and eight franchises. Because it is new and emerging, Discover Rims, unlike Rimco, is willing to go to great lengths to welcome prospective franchisees. Reeves says his ideal franchise owner is someone who is financially savvy but not necessarily franchising or rent-to-own; or the person with a background and experience in renting with the option to buy but without the financial means. Discover Rims is willing to go to the bank with its franchisees or set up an SBA loan for them. Discover Rims has been quite creative in financing its franchises.
In any case, whether you decide to join an established operation or go with one of the newer franchisors, working within a franchise structure has many advantages over going it alone. Without a doubt, the most important advantage is that you are not alone. It is possible to be very successful starting a business on your own; but it’s usually a long, hard road with no guarantees that you won’t end up broke, battered and bruised. On the other hand, if you have a franchise, it’s still a lot of work, but at least you have the backing of experts who have been there before and want to do whatever they can to help you succeed. Some franchisors, like Aaron’s Franchise Info, have buyback programs that pay big bucks so you can hedge your bet in case you decide leasing isn’t your thing.
