Aarons 1997 Annual Report Download - page 7

Furnishings
Convention
Furnishings
Aaron Rents doubled the size of its Convention Furnishings division and
expanded its reach nationwide with the acquisition of the assets of Blackhawk Convention
Services, Inc. last year. This acquisition enables the division to service any city in the United
States through offices located in most of the major convention markets, opening new oppor-
tunities in a growing industry.
Blackhawk’s three locations in the Chicago, New York and Las
Vegas markets were added to the existing Aaron Rents’
Convention Furnishings locations in Atlanta, Cincinnati,
Orlando and Dallas. The acquisition provided our initial
penetration of the Chicago market and paved the way for
the Company’s rent-to-rent business to open a store in
the area in early 1998.
Convention
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HE AR ON E NT S ONVE NT I ON
UR NI S HI NGS DI VI S I ON PR OVI DES F OR
T HE T E MPOR AR Y NE EDS OF A WI DE R ANGE
OF ME ET I NGS F R OM T R ADE S HOWS T O
MAJOR E VE NT S L I K E T HE UPE R OWL
AND NAT I ONAL POL I TI CAL CONVENT I ONS
Aaron’s Rental Purchase provides substantial support to
franchise owners. From helping create an effective business
plan to shopping the competition in the area, the Company
is there to assist with site selection, training, publicity, financ-
ing, purchasing discounts and advertising. All aspects of oper-
ating a profitable rental purchase business are covered in a
comprehensive training course for the franchise owner. After
the opening of the store, ongoing training and support are
provided by our field consultants. Full data on sales and oper-
ational controls are supplied to franchise owners via the
Aaron’s Customer Tracking System (ACTS).
A major advantage for the Aaron’s Rental Purchase
franchise owner is the Company’s volume purchasing plan
that passes on price benefits to the store, allowing more
competitive prices to the consumer —a key success factor of
the Aaron’s concept. The franchise owner receives further
cost benefits by obtaining furniture supplied by the
Company’s own manufacturing division.
To enhance the growth rate of the franchise effort, a new
financing program was developed in 1997 and implemented
in early 1998, increasing cap-
ital available to franchisees
for new store openings. The
$40 million financing facility
with four major banks pro-
vides inventory financing for
new franchise owners. It also
offers long-term inventory
and working capital funds for
multi-store and experienced
franchisees.
Ranked among the top
franchises nationally, the
Aaron’s Rental Purchase
franchise program is growing
at a rapid rate.
10
UAR T ER LY E VE NUE S
OF R ANCHI S E T OR ES
0
$5,000
$10,000
$15,000
$20,000
1992 1993 1994 1995 1996 1997
INS
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
U MB E R OF T OR E S P E N
101*
86*
76*
71*
61*
54*
45*
38*
36*
31*
28*
26*
24*
21*
18*
15*
14*
8*
6*
6*
3*
2*
1*
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