Aarons 2007 Annual Report Download - page 18

Since the inception of the franchise program, Aaron’s
has acquired over 200 franchised stores, providing
the Company with additional high-performing stores.
At year end 2007, there were 484 franchised stores
open and another 284 stores under area development
agreements to open over the next few years.
Custom wheels and high-performance tires have
been a rapidly emerging category in the rent-to-own
industry with several corporate participants. At the
end of 2007, we operated 27 Company-operated
RIMCO stores and four franchised RIMCO stores.
These stores lease automobile tires and rims to cus-
tomers under sales and lease ownership agreements.
At present, the Company still considers the RIMCO
stores a development-stage concept.
The Company intends to continue to expand the
sales and lease ownership concept through new store
openings, selective acquisitions and franchise awards.
New stores typically break-even during the second year
of operation, and a large number of stores opened over
the past three years are now beginning to leverage
“ My husband, Wayne, and I have
been customers for about eight
years. First, we bought a tele-
vision through Aaron’s. When it
was paid off, we gave it to one of
our grown daughters. When we
paid off the second TV, we gave
it to the other daughter. Now, it
is time to keep one for ourselves.
Honestly, I really don’t look at
competitors because Aaron’s
payment plan is so convenient
and the selection is good.”
their fixed costs and investment in rental inventory.
In addition, operational efficiencies continue to be
an important avenue for improved profitability and
a current management focus.
Aaron’s Corporate Furnishings Division
The Aaron’s Corporate Furnishings division rents and
sells new and rental return merchandise to businesses
and individuals out of 46 stores in 16 states. In addi-
tion, the division operates 16 stores that specialize in
office furnishings. The division, currently represent-
ing approximately 8% of Company revenues, offers
both residential and office furniture and is thought
to be the second largest corporate furnishings rental
company in the United States. A growing part of the
business has been the rental of residential furniture to
business customers for use by relocated employees or
those on temporary assignment. A national accounts
program has developed strategic partnerships to fulfill
nationwide needs of clients. As an example, Aaron’s
furnishes all of the trailers used by broadcasters at
NASCAR races and selected other special events. This
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