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Below is an in-depth analysis and side-by-side comparison of DOTI Design Stores vs Aaron's Sales & Lease Ownership including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $290,000 - $398,000 | $283,270 - $852,975 |
Franchise Fee | $37,500 | $50,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | - | - |
Year Founded | 1983 | 1955 |
Year Franchised | 1999 | 1992 |
Term Of Agreement | 5 years | 10 years |
Term Of Agreement | 5 years | 10 years |
Renewal Fee | - | $2.5K |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/No | No/No |
Inventory | No/Yes | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op advertising, Ad slicks, National media | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 9 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
International franchisees required to buy multiple units/master licenses; 90% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. (30% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | No | Yes |
When Jim and Michele Evanger purchased Barrington, Illinois-based Designs of the Interior (DOTI) in 1993, they had big plans for expanding their new company. The couple added two locations by 1997 and started franchising in 1998. DOTI has recently shifted its franchise concept from that of a small design studio to a larger design store.
DOTI's stores average 5,000 square feet in size and provide everything from upholstered furniture and rugs to accessories, lighting and window treatments. The company offers both single-store and multistore development programs.
DOTI has reached agreements with various manufacturers to develop its own private-label line of furniture. Franchisees that take advantage of the program can then sell merchandise reflecting the DOTI brand to their customers.
Aaron's Rents offers furnishings such as big screen televisions, couches and refrigerators for rental or purchase at its stores across the United States. R. Charles Loudermilk Sr. began the business in 1955, renting folding chairs he had purchased from an army surplus store for 10 cents a day. Today the company rents items for a few days or weeks, or sells items on 12- to 18-month terms.
Aaron's Rents began franchising in 1992. The company is publicly traded on NASDAQ.