Aarons 2002 Annual Report Download - page 12

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10
franchise owner bases his or her individ-
ual business plan on the Company’s
proven financial and operating model.
Next, the franchisee utilizes the site
selection expertise of the Aaron’s sys-
tem, which includes market analysis
identifying the strengths and weakness-
es of competitors. This analysis is the
basis of an effective marketing program
to reach the customer base. Aaron’s pro-
vides franchise principals with initial
and ongoing training in the management
and operation of Aaron’s stores as well
as the necessary computer software and
assistance in advertising, marketing, and
publicity. Aaron’s willingness to repur-
chase stores provides an exit strategy for
franchisees and attractive acquisition
opportunities for the Company.
The entire Aaron organization benefits
from the shared experience and expertise
of the franchise principals and operating
management of Company-operated
stores. The Aaron’s Franchise Association
and the Aaron’s Management Team,
comprised of both franchise principals
and representatives of the Company, are
the key vehicles for communication and
cross-fertilization.
Aaron’s leadership in franchising is
confirmed through annual surveys of
franchise programs. For years, Aaron’s
has placed at or near the top in its
category of appliance and furniture
rentals by Entrepreneur magazine. The
program also has ranked in the top 100
franchise chains by worldwide sales in
the Franchise Times. To win the upper-
tier ratings, Aaron’s must meet high
standards of financial performance
based on growth of revenues, franchise
fees, and the Company’s proprietary
products and services. In addition,
Aaron’s is judged on the performance
and strength of its management, the
relationship with franchise owners, and
the opportunities available for the
growth of franchised stores.
QUARTERLY REVENUES OF FRANCHISED STORES
AARON’S RECENTLY PASSED THE
700 STORE MARK WITH A NEW STORE
IN AUGUSTA, GEORGIA. THIS STORE,
REPRESENTATIVE OF THE LATEST
COMPANY STORE LAYOUT, IS OFF
TO A STRONG START.
101*
106*
116*
121*
136*
194*
201*199*
209*
138*
136*
142*
155*
211*
217*
225*
232*
166*
179*
186*
193*
86*
76*
71*
61*
54*
45*
38*
36*
31*
28*
26*
24*
18* 21*
15*
13*
8*
6*
6*
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
$70,000
60,000
50,000
40,000
30,000
20,000
10,000
$0
*Number of Stores
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
($ in 000s)