Buddy’s Home Furnishings

About

What is Rent-to-Own?

Rent-to-own (RTO) is an essential and recession-resistant industry offering customers affordable payments on everyday necessities, which is why RTO annual revenue has steadily increased for decades despite good and bad economies. 

The rent-to-own industry gained traction in the 1970s in response to customer demand for acquiring household products without incurring debt or jeopardizing the family’s credit. RTO customers continue to come from all walks of life and share the common desire to have durable goods in their homes without the long-term financial obligations associated with credit sales. 

The cornerstone of RTO, and a point of differentiation from traditional retail, is there is no interest, no credit check and customers can return the merchandise at any time for any reason without penalty. This model has become a mainstream hallmark of consumerism spanning industries from car sharing services, to clothing rental subscriptions, technology trade-in programs and so much more. 

According to the 2021 Association of Progressive Rental Organizations (APRO) Annual Industry Health Survey, the RTO industry served an estimated total of 5.27 million households in 2020—approximately 1 of every 23 American households rented products from a traditional brick-and-mortar RTO store. 

Why Franchise with Buddy’s Home Furnishings?

There are many benefits to franchising with one of the fastest growing rent-to-own retailers:

60+ Years of Historical Success

Buddy’s level of expertise and success has only compounded with time. Franchise owners benefit from Buddy’s national brand recognition and the tried-and-true, proven systems refined over decades in RTO. 

Impressive Unit Economics 

On average, the top 25% of stores see $1,467,253 gross sales and $437,295 cash flow per store. *

Recurring Revenue on Inventory

Franchise owners see an average of 25% in free cash flow, which is attributed to the unique recurring revenue model in RTO that yields multiple returns on every product.*

Business Model Built for Franchising 

Approximately 88% of Buddy’s franchisees are multi-unit owners and growing, which is a testament to the company’s systematic, proven approach to establishing and scaling stores.

Community Focused 

Buddy’s success is a reflection of the relationships every store develops with its local community. The company culture is to nurture relationships with customers that aren’t built on transactions, but rather, trust.

* This information reflects the Average Gross Sales and Average Free Cash Flow for the Top 25% of Buddy’s Home Furnishings company-owned retail businesses which were in operation for the entirety of the 2022 fiscal year. Of the 36 retail businesses that were in operation for all of 2022, 9 were included in the Top 25% sample set and 2 attained or surpassed the Average Gross Sales and 3 attained or surpassed the Average Free Cash Flow as described above. We refer you to Item 19 of our 2023 Franchise Disclosure Document for additional information. A NEW FRANCHISEE’S RESULTS MAY DIFFER FROM THE REPRESENTED PERFORMANCE. This advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Offerings made by prospectus only and in compliance with the applicable pre-sale registration and disclosure requirements in your state. ©2023 Buddy’s Home Furnishings®. All rights reserved.