Rent - A - Center vs Buddy's Home Furnishings Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Rent - A - Center vs Buddy's Home Furnishings including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Rent - A - Center Franchise
Buddy's Home Furnishings Franchise
Investment $355,268 - $560,225$385,166 - $912,594
Franchise Fee $35,000$25,000
Royalty Fee 5.5%6%
Advertising Fee 3%$500/mo.
Year Founded 19801965
Year Franchised 20132007
Term Of Agreement 5-10 years-
Term Of Agreement 5-10 years-
Renewal Fee --


Business Experience Requirements
 
Rent - A - Center Franchise
Buddy's Home Furnishings Franchise
Experience --

Financing Options
 
Rent - A - Center Franchise
Buddy's Home Furnishings Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees -/--/-
Start-up Costs -/Yes-/Yes
Equipment -/Yes-/Yes
Inventory -/Yes-/Yes
Receivables -/--/-
Payroll -/--/-

Training & Support
 
Rent - A - Center Franchise
Buddy's Home Furnishings Franchise
Training On-The-Job Training: 73 hours Classroom Training: 36 hours On-The-Job Training: 60+ hours Classroom Training: Up to 42 hours
Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
Marketing Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
Operations Absentee Ownership Allowed Number of Employees Required to Run: 4 - 6-

Expansion Plans
 
Rent - A - Center Franchise
Buddy's Home Furnishings Franchise
US Expansion YesYes
Canada Expansion NoYes
International Expansion Yes-

Company Overviews

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
"Entrepreneur
#209 in Franchise 500 for 2020.
#153 in Franchise 500 for 2021.





About Buddy's Home Furnishings

Buddy’s Home Furnishings is the third largest Rent-To-Own (“RTO”) furniture, appliance, electronic and computer provider in the United States. Buddy’s was founded in 1961 in Tampa, Florida and for the first 30 years of existence the Company operated 21 stores in the Greater Tampa Area. Over the past five years, Buddy’s has aggressively expanded its footprint by adding new company-owned and franchised stores outside of its home area. As of July 1, 2015, 103 franchise, 54 company, and 45 partnership stores located in the South, Southeastern and Southwestern regions of the U.S. The Company plans to continue this rapid growth over the next several years by opening new company-owned stores, acquiring independently operated RTO stores and franchising stores.

The total investment necessary to begin operation of a Buddy’s Home Furnishings retail business is $385,166 to $912,594. This includes $100,860 to $243,510 that must be paid to the franchisor or an affiliate. If you enter into a Development Agreement, your investment to begin operation of your first Buddy’s Home Furnishings retail business will be as described above (minus the initial franchise fee for the first Buddy’s Home Furnishings retail business that will be paid as part of the development fee under the Development Agreement), and you will pay the franchisor a development fee due in connection with signing the Development Agreement. The development fee will be $25,000 for your first Buddy’s Home Furnishings retail business to be developed under the Development Agreement and 40% of the initial franchise fee for each additional Buddy’s Home Furnishings retail business to be developed under the Development Agreement. You must commit to develop a minimum of two Buddy’s Home Furnishings retail businesses under the Development Agreement.
Veteran Incentives  20% off franchise fee