Aarons 2000 Annual Report Download - page 8

6
Quarterly Revenues Of Franchised Stores
Franchising
Nationwide Expansion
space for displaying personal computers. This has heightened customer appeal in the already attractive
Aaron’s stores, which are large and inviting, generally in suburban areas with more upscale customers
than are typical of competing rental purchase stores. With an average 9,000 square feet, an Aaron’s store
is more than three times the size of conventional competitors. Consequently, Aaron’s customers enjoy
a much greater selection of leading brand name merchandise plus the Company’s own lines of furniture
and accessories.
All of these advantages are combined with the Aaron’s 12-month ownership plan to create a powerful,
winning formula unmatched in the marketplace. Customers can acquire merchandise from Aaron’s with
12 monthly payments versus the typical 18 to 36 months of weekly payments at most competing stores.
Aaron’s also provides automatic pre-approval and the guaranteed lowest price. Customers have the right
to return merchandise at any time. Flexible payment options include cash, check or credit card.
Vertical integration of Aaron’s operations together with volume purchasing are key factors in timely
delivery of high quality merchandise to the market. First, the Company’s furniture manufacturing division,
MacTavish Furniture Industries, supplies much of the furniture to the stores at a cost advantage, allowing
very competitive pricing to the customers. Second, the expanding distribution system of Aaron Rents,
with six large centers located across the country, ensures the same-day or next-day delivery of merchan-
dise to the customers, a critical success factor in our market.
Aaron’s Sales & Lease Ownership features its Dream Products and pricing on the Internet at
www.shopaarons.com.
Aaron’s Sales & Lease Ownership franchise owners are opening new stores and new territories at
a record pace, reflecting the strong demand for the Aaron’s concept throughout the country. In
2000 franchise owners acquired franchises for 78 new stores, and at year-end an additional 146
stores were in the pipeline for future opening.
During the year 47 new franchised stores were opened; nine were acquired by the Company bringing
the year-end total to 193 franchised stores, a store increase of 25% over 1999. Aaron’s opened franchised
stores in three new states, Maine, North Dakota and Nebraska. Including the franchised stores, the
Company had a total of 456 sales and lease ownership stores in 42 states and Puerto Rico.
The record-setting growth is driven by multi-store franchise owners. Eighteen franchise owners
acquired the 78 franchises awarded last year, including one who signed up for 19 new stores.
101*
106*116*121*
136*
138*136*
142*
155*
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
$50,000
40,000
30,000
20,000
10,000
0
*Number of Franchise Stores
1993 1994 1995 1996 1997 1998 1999 2000
($ in 000s)