Aaron's Sales & Leasing

I am seriously looking at an Aaron's franchise. They are aggressively expanding into Canada. I live in the G.T.A. (Greater Toronto Area) and would be looking at a location in the area. I know the demographics are $50,000 family income.

The stores do well in the U.S. I'm not sure whether they will be as successful here. Aaron's Rents is one of the few companies on the NYSE to increase their guidance for the next quarter. Apparently this recession helps them??

Does anyone have more information or personally knows someone who owns a franchise. Most store owners are multiple franchise owners as well. I suppose that is a good sign, as you would not open an additional store, if the first one sucked. Most McDonald Z's are multiple owners as well and they are profitable.

I think most owners sign up for a territory and commit to opening 2-3 stores in that territory, in a short span (2-3 years).

Any information, good or bad will help.

In the US...

These deal primarily with poor folks like a sub-prime lender does.

I dunno how profitable they are. Personally I wouldn't want to be in that business, but it's legal so I can't gripe if you want to.

on March 8th, 2009

Re: In the US...

That is what I am grappling with. You really are ripping off the most vulnerable in society. I wouldn't mind so much, if it were rich folk I was skinning. They seem to be profitable in the U.S., but I'm not so sure in Canada, as we are more conservative with our money.

Posted by cls800 on March 8th, 2009

Re: In the US...

Aaron's provides a valuable service to a demographic that cannot, or does not want to, utilize credit. If you have been following the news, this demo is growing. If you believe that they 'are ripping off' people maybe this is not a business for you. Certainly the mindset of an Aaron's franchisee (trust me, I know) is not 'how can I rip someone off today', it is 'how can I help my customers'.

Posted by Guest on March 24th, 2009

Re: Re: In the US...

That is commendable. You are either an Aaron's franchisee or H.O. employee. I find it difficult when their everyday low price or cash price, is way higher than most other retailers. I'm not sure where the lowest price guarantee comes in?? I am not talking about lease to own, but just regular retail price, should at least be competitive. If customers want to lease/rent to own, than they do have to understandably pay more, but the cash price should be competitive.

Posted by cls800 on March 27th, 2009

the judge was disgusted

I used to work for the Court here. There is a rent-to-own store (not an Aaron's) just up the street from the courthouse. They used to come in from time to time with legal actions against their customers. The judge would look over the contracts and be disgusted by them.

Yes, this industry supplies certain goods to folks who couldn't get them otherwise. Well maybe po' folk shouldn't oughta have stuff they can't afford. Someone who has trouble putting food on the table or paying the light bill doesn't need a new big screen TV, especially when he ends up paying 3 or more times what it sells for when you total up the payments over just a few years.

Now it's a free country and they are legally competent adults so where do you draw the line between allowing these folks (who are already down) the freedom to fail (even worse), versus protecting them from what you & I think are bad deals? Rent to own is like sub-prime mortgage lending. Yeah the people couldn't otherwise buy a house, but is it really better for them to buy a house THAT THEY CAN'T AFFORD??? And so it is with rent-to-own.

I don't doubt there could be money in this. And not as if it was illegal. Just not for me, no matter how they spin it into what a favor they are doing for the disadvantaged. Kinda like "affirmative action", huh???

on April 9th, 2009


Retail prices in Aaron's are competitive. They may be higher on televisions due to the extreme deflationary pricing environment with them. However, if you were to bring in a best buy ad, any Aaron's would match the price and give you an additional one year warranty backed by the manufacturer. Furniture is very well built and while higher priced than Value City, much higher in quality.

With regrad to the lease option, of course it is not a lower price than paying cash. You need to compare it to what if someone paid for it on a credit card and made minimum or close to minimum payments (that's what most people do). Then take in the warranty and service that comes with the lease, the ability to purchase without utilizing credit, the ability to return it with no further financial obligation, the ability to come back to the store a year after they returned it and pick up where they left off, and many other advantages, and you see where the value added service comes in. Customers pay for this value added service. Do not buy a Franchise where you cannot offer a value added service that your customers will pay for, because that is where you make money, and isn't that what this forum is about?

I agree, if you can't afford something, you should not buy it. So should Aaron's do an interview with the customer about their lifestyle and then deem them 'worthy' to own a new refigerator, washing machine, or TV? Every customer has the agreement explained to them, including all costs and fees, including the maximum amount they would end up paying for the item if they went the term of the contract. Does Best Buy do that at the register, when they ask if you would like to open an account and pay for your new TV that way?

Sorry, I could go on and on, but I will stop here. Wait, one more thing. Aaron's reports payoffs to the credit bureaus, therefore helping consumers get credit, and raise credit scores. Therefore making it easier to get more traditional credit, if they choose, in the future. I know many, after building good credit up, who continue to come back to do business with Aaron's.

Posted by Bill on April 10th, 2009

Interest Rate

The interest rate on most credit cards are between 20-30% Max. I checked the interest rate on one of Aaron's leases and it was around 80%. That is where they make their money. The spread is huge and that is taking their Cash Price, which is already inflated. If you can get your revenue up to their store average, it is a cash cow.

I agree with Bill, that they do explain everything to the customer, but most of them can't help themselves, like compulsive gamblers or addicts. They just want the item so desperately, they don't care to wait a few months, save the money and buy it for cash somewhere else for less than half price. It is a similar business to pay day loans. Actually rent-a-center, in some of their stores have added pay day loans. Very complimentary. Cash your cheque early and rent a large screen HD TV. Perfect!!

Posted by cls800 on April 10th, 2009


You are missing the point. This is not a credit transaction, thus no APR. What would the APR be if a bank charged you $35 for overdrawing your account by $50? What is the APR you are paying when you rent an apartment, or a car from Hertz? See my point?

Payday loan is much different. That is loaning money. Aaron's does not loan money. They rent merchandise.

Posted by Guest on April 14th, 2009

You wrote: "... but the cash

You wrote: "... but the cash price should be competitive."

Jeez... this is America. Who are you or I to tell a business owner what his "cash price" should be? The market will determine if his cash price is too high!

Posted by Guest on August 31st, 2012

Really how can U help by

Really how can U help by saying hey I will let you have something if u pay me 45% more than what it's worth. They have their own manufacturing companies and mark the price up on the cost 2 to 3 time's then add a 45% service charge. How in anyone one's mind is this right. The people that shop there shop there because they dont make enough to pay something out right or because they think it is easier to pay something monthly then out right. This is just another thing designer to keep middle America down. In no way does this help anyone beside's some rich person get richer and have more write off's.

Posted by Guest on July 29th, 2010



I came across your feed while researching Aaron's. Are you a franchisee? If so, you seem to be having a positive experience with this franchise. I am curious, if you are a franchisee, what area is your unit, and can you share any information with me that may be helpful? I live and Georgia and actually worked at the Buckhead office for a very short time in the CAD/Store Planning dept before I got married. I have noticed that they have been growing steadily over the last four years since I have worked their and am very interested in finding out as much information as possible about them. I am in the very beginning phase of considering a franchise as a business for myself. I LOVED working at Aaron's and trust this franchise and it's employees, however, I have a ton of research to do before I contact this franchise directly. If you have ANY input it would be greatly appreciated.

Thank you,

Posted by Guest on December 2nd, 2010

young drivers

Posted by crosby on August 25th, 2009


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