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- 2022 Franchise 500 Rank
#90 Ranked #153 last year
- Initial investment
$355K - $560K
- Units as of 2021
2,362 5% over 3 years
Here’s what you need to know if you’re interested in opening a Rent-A-Center franchise.
Rent-A-Center, founded in 1980, is a public rent-to-own furniture and electronics company located in the U.S. With over 2000 store locations, they are committed to providing quality yet affordable furniture and electronics with residential and commercial sales. Rent-A-Center has been franchising since 2013 and has steadily been gaining franchisees.
You do not need to build furniture or fix electronics to run a Rent-A-Center franchise. They will provide you with the training you need to run a retail business. The perfect candidate for a Rent-A-Center franchise has a passion for business, giving great deals, and supporting the local community.
Why You May Want to Start a Rent-A-Center Franchise
Opening a Rent-A-Center location means that you are part of one of the best rent-to-own furniture and electronic companies in the world. With their commitment to providing quality products, they have great prices and a same-day delivery policy. A Rent-A-Center franchise is an amazing opportunity to offer people in your community a chance to live the life of their dreams. With no credit needed and a flexible payment plan, your business will strive to allow many people to afford essential and non-essential purchases to make their lives easier and more enjoyable. From beds and sofas to luxury gadgets, Rent-A-Center will not only provide quality, but match competitor’s prices.
Rent-A-Center has established itself in a niche market, having worked hard to perfect the rent-to-own sales style. The current business model draws in millions of clients annually and promotes brand loyalty.
What Might Make a Rent-A-Center Franchise a Good Choice?
With more than 40 years of experience, Rent-A-Center has become a major company in the industry. By selling high quality, high and low-end furniture and electronics, they attract a lot of customers. As you make your decision regarding whether to open a Rent-A-Center franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. Ample market research may make site selection easier after you sign a franchise agreement.
To be part of the Rent-A-Center team, you should make sure you’re financially ready for an initial investment that will include a franchise fee and other startup costs. Franchisees may also need to meet the company's set net worth and liquid capital requirements.
How Do You Open a Rent-A-Center Franchise?
To start a Rent-A-Center franchise, you’ll first submit a franchise inquiry. Rent-A-Center keeps its franchise process close to its vest, but expects you to undergo background and financial checks. You may also have to complete phone interviews to see if your vision matches theirs. It may also be wise to consult a financial planner and an attorney as you begin the process of opening a franchise.
If everything progresses well and both parties want to go into business together, you may sign a franchise agreement. Once you have signed on board, you will complete the rigorous training that includes both classroom and on the job training. The training will equip you with the knowledge and skill to run your franchise. Rent-A-Center will work with you every step of the way to set up your franchise.
- Franchising Since
- 2013 (9 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 2,362 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Rent-A-Center franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $355,150 - $559,775
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $750,000 - $3,000,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $100,000 - $130,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $5,000 off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Rent-A-Center has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- Classroom Training
- 14.5 hours
- Ongoing Support
Purchasing Co-opsMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Rent-A-Center? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Rent-A-Center landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Rent-A-Center ranked on other franchise lists? Find out below.
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