Premier Rental-Purchase sells and rents furniture, electronics, and appliances with delivery and setup services. The franchise provides convenient shopping options including online ordering and home delivery.
Key Insights
- Premier Rental-Purchase has a long-standing presence in its sector, evolving from its foundational roots. The business model centers on offering consumers flexible access to a wide array of home furnishings, appliances, and electronics through rental agreements with an option to purchase. This approach caters to a customer base seeking immediate access to desired items without upfront ownership costs.
- The franchise operates by establishing retail locations that serve as showrooms and service hubs. Customers can browse and select products, enter into rental-purchase contracts, and receive delivery and setup services. The business manages inventory, maintenance, and customer relations throughout the contract term.
- The industry the business operates within serves a significant consumer segment that values affordability and flexibility in acquiring household goods. This market is characterized by its responsiveness to economic conditions and consumer lifestyle shifts, providing consistent demand for accessible ownership solutions.
Franchise Fee and Costs to Open
Exploring the financial picture of Premier Rental-Purchase gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $367,475 - $630,070, along with a franchise fee of $25,000 - $25,000.
Financial Performance and Revenue
Yearly gross sales of $740,977 and estimated earnings of $74,098 - $88,918 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 6.6-8.6 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Premier Rental-Purchase provides comprehensive initial training for new franchisees. This program spans two weeks and is conducted at their headquarters. Franchisees receive extensive resources covering operational procedures and best practices. Premier Rental-Purchase offers ongoing support and access to a wealth of established business tools.
Legal Considerations
Legal considerations for a Premier Rental-Purchase franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
A franchisee in the rental-purchase sector may encounter several considerations. Navigating local market competition, where similar businesses offer alternative payment structures or product selections, requires attention. The operational complexity inherent in managing inventory, processing customer agreements, and ensuring timely service and repairs presents ongoing demands. Furthermore, reliance on specific supply chains for product availability and maintenance can introduce logistical considerations that impact business continuity.
Franchise Datasheet
FAQs
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