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Updated RecentlyRadioShack vs Rent - A - Center Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of RadioShack vs Rent - A - Center including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $144,875 - $643,851 | $355,268 - $560,225 |
| Franchise Fee | $39,900 | $35,000 |
| Royalty Fee | 5% of net sales | 5.5% |
| Advertising Fee | 3% for the Ad Fund | 3% |
| Year Founded | 1921 | 1980 |
| Year Franchised | 1968 | 2013 |
| Term Of Agreement | 10 years | 5-10 years |
| Term Of Agreement | 10 years | 5-10 years |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | Significant business experience; we are particularly interested in individuals who have demonstrated successful ownership or management of multiple business units or have managed multiple departments Individuals who possess the capability to grow with RadioShack. The ability to develop and execute a business plan. An entrepreneurial spirit and strong desire to work hard and be part of an established franchise system Ability to manage finances, including a thorough understanding of business financial statements The capability to effectively manage an organization that recruits, trains, and motivates employees who deliver an exceptional customer experience An acceptable credit history Sufficient liquid assets (i.e., cash) to invest into the business | - |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/- |
| Start-up Costs | No/No | -/Yes |
| Equipment | Yes/No | -/Yes |
| Inventory | Yes/No | -/Yes |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | Local workshop, annual convention | On-The-Job Training: 73 hours Classroom Training: 36 hours |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
| Marketing | Co-op advertising, Ad slicks, National media | Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing |
| Operations |
9% of all franchisees own more than one unit Number of employees needed to run franchised unit: 2 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | Absentee Ownership Allowed Number of Employees Required to Run: 4 - 6 |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | Yes |
Company Overviews
About RadioShack
RadioShack was opened in 1921 by the Deutchmann family, offering ham radio operators and electronics buffs a retail and mail order source for their electronics needs. By the 1960s, the company had nine stores and was shipping electronics to people all over the world, but was falling on hard times.
Charles Tandy purchased the company in 1963 and turned its $4 million debt into a $20 million profit. Today the company operates stores nationwide, selling everything from batteries to satellite dishes to electronics buffs and general consumers.
About Rent - A - Center
There's no better way to join the exciting and profitable rent-to-own industry than to franchise with Rent-A-Center. With over 4,100 locations in the United States and Mexico and over $3 billion in annual revenue, Rent-A-Center is the undisputed segment leader.
We offer the resources unmatched in rent-to-own to support our franchisees. In addition to world-class marketing, training and operations support, Rent-A-Center franchisees benefit from in-house financing and a competitive royalty structure that decreases as you grow.
Rent-A-Center Franchising is the nation's first franchisor of independently owned and operated rent-to-own stores, with over 35 years of franchising experience. Today, we are committed to creating value for our Franchisees by supporting them with superior systems, programs and processes every step of the way. Their successes are what drive our franchise model, one that is poised to continue its long, successful history.
Veteran Incentives $5,000 off franchise fee
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