Previously known as Aaron Rents, Aaron's Inc is a franchise company founded in 1955 by the chairman, Robert Charles Loudermilk Sr. It is one of the leading rental and rent-to own companies in the US dealing in mostly office and home furnishings, electronics, computers and appliances. Aaron's Inc has 1723 stores in the US and Canada with 579 US franchises and 31 Canadian franchises as of 2010. It includes three major divisions; sales and lease ownership, corporate furnishings and manufacturing and has been franchising since 1992.
The franchise headquarters is based in Atlanta Georgia with the President and CEO of the company being Robert Charles Loudermilk Jr. and William K. Butler Jr. the COO and director. Of its 1723 locations, 1094 are company owned sales and lease ownership stores, 11 are Rimco Stores, 7 are Franchise Rimco Stores, 599 are Franchised SALO stores and 12 are Aaron's Office Furniture stores. The first Aaron's Inc store in Canada was opened on the 13th of April 2007 in Windsor Ontario. Characterized by the fact that it is the only rental company that manufactures and reconditions its own furniture, Aaron's Inc believes that it has an edge over its competitors like Bestway, Brook Furniture Rental and Rent-A-Center. It also has a unique concept for rental and purchasing options with a variety of merchandise to choose from in their larger store show rooms. The speed and efficiency of the company's delivery time span from time of order is also another factor to reckon with as it gives the company an advantage compared to the other furniture dealers who may take several weeks to deliver.
One advantage it gains by having its own manufacturing and distribution capabilities over its competitors is that it is more customer-specific in meeting the distinct needs of its different customers whether rental or purchase oriented. It also means cheaper production costs and therefore higher profit margins.
Aaron's, Inc has different franchise stores concentrating on different products. The major divisions however still remain Aaron Rents' Rent-to-Rent, Aaron's Rental Purchase, MacTavish Furniture and as much as Aaron's, Inc was founded on furniture rentals and sales, there are other stores such as the Rimco franchise that deals with the lease and purchase of custom wheels, tires, car accessories and other automotive related gadgets.
Aaron's, Inc is a billion dollar company with some 9,600 employees. It is listed as AAN or AANA in the NYSE, reporting revenues of $1.877 billion for 2010 and net earnings of $118.4 million. Although through the years since its foundation in 1955 it has closed down or sold off some of its divisions like the corporate furnishing division, Aaron's, Inc still continues to record improved revenue and earnings year over year.
Total investment is estimated between $233,000 and $600,000, franchise fees of $50,000, royalties of 6%, a 10 year term of agreement and a $2500 renewal fee.
The franchise also incorporates itself in sports activities by providing sponsorship to its NASCARS that compete in both the NASCAR's Sprint Cup Series and the NASCAR's Nationwide Series. They also sponsor their team, Aaron's Cycling Team, both men and women that compete in the USA National Racing Calendar.
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