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Rent-to-Own Forecast Continues to Attract Buddy's Franchise Owners Buddy's Home Furnishings is one of the fastest growing rent-to-own franchises in America. Discover why 91% of Buddy's franchises own multiple units and keep coming back for more.
During a year with more economic uncertainty than not, Buddy's Home Furnishings grew its multi-unit ownership base to 91%. There are plenty of reasons why Buddy's continues to see a healthy repurchase rate, even after six decades of operation, but the industry and business model are two pillars of understanding the appeal. Let's discuss.
To understand Buddy's, you have to understand the rent-to-own industry itself. Rent-to-own emerged in the 1950s in response to customer demand for acquiring household products without incurring debt or jeopardizing the family's credit. The founding principles of rent-to-own serve as the blueprint to modern-day installment payment models such as clothing subscriptions, monthly phone payments and even car rental services.
Today, rent-to-own is a $12.6 billion* essential and recession-resistant industry offering customers affordable payments on everyday necessities, which is why rent-to-own annual revenue has steadily increased for decades despite good and bad economies.
"All cultural and economic signs point to continued growth of the rent-to-own industry," says Michael Bennett, CEO of Buddy's. "The cost of living is at an all-time high, which means the ability to afford home necessities through rent-to-own retailers is too. No one meets that demand better than Buddy's."
Buddy's youngest multi-unit franchise owners, Myles McNeal and Jacob Bocook of J&M Franchising, are both under 35 years old and recently signed for two stores in Washington. The rent-to-own industry was a huge reason why they chose to franchise with Buddy's.
"In addition to the earning potential and scalability of the business, we were both attracted to the fundamental benefits of rent-to-own," McNeal says. "It is a business based on relationships, and there is demand for it in every community. Everyone needs an affordable way to get home necessities, so we need to be there to provide it."
Ben Pou of The Pou Group, BHF, is a fifth generation furniture retailer and signed to develop 14 stores across Central Florida as part of Buddy's largest agreement in the state. He felt a familial connection with the Buddy's team and valued the opportunity to help communities afford home necessities across his home state.
"I want to build a legacy business for my family, so I aligned my expertise in furniture with a brand that is both a cultural fit and has prevailed over economic highs and lows," Pou says. "Through Buddy's proven model and franchisee support, I will have the margin to be a multi-unit owner and serve more communities across Central Florida."
The unit economics explain another reason why franchise owners inevitably grow their footprint. On average, the top 25% of stores see $1,467,253 gross sales and $437,295 cash flow per store.** Buddy's also offers an attractive 0% royalty fee for the first six months.
Want to learn more about franchise opportunities with Buddy's Home Furnishings? Start by visiting BuddysFranchising.com or schedule a call with Mitchell Lee, Buddy's Director of Franchise Development.
* Courtesy of APRO.
** This information reflects the Average Gross Sales and Average Free Cash Flow for the Top 25% of Buddy's Home Furnishings company-owned retail businesses which were in operation for the entirety of the 2022 fiscal year. Of the 36 retail businesses that were in operation for all of 2022, 9 were included in the Top 25% sample set and 2 attained or surpassed the Average Gross Sales and 3 attained or surpassed the Average Free Cash Flow as described above. We refer you to Item 19 of our 2023 Franchise Disclosure Document for additional information. A NEW FRANCHISEE'S RESULTS MAY DIFFER FROM THE REPRESENTED PERFORMANCE. This advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Offerings made by prospectus only and in compliance with the applicable pre-sale registration and disclosure requirements in your state. ©2023 Buddy's Home Furnishings®. All rights reserved.