Skip to main content
ClearValue Lending
Guide 8 min read Updated May 6, 2026

Cost to Start an Aaron's Franchise in 2026

Aaron's franchise startup costs run $239K–$821K for a furniture, appliance, and electronics lease-to-own retail concept. Aaron's lease-to-own model serves credit-challenged consumers who cannot access traditional retail financing, creating a resilient demand base across economic cycles.

Aarons franchise costs at a glance

Total investment $239,000–$821,000
Franchise fee $35,000
Royalty 6%
Liquid capital required $75,000
Net worth required $250,000
Source: Aarons Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.

Key takeaways

  • Total estimated startup cost: $239,000–$821,000(furniture, appliance, and electronics lease-to-own retail)
  • Franchise fee: $35,000
  • Ongoing royalty: 6% of gross revenues; marketing fund contribution applies
  • 1,200+ company and franchise locations across the US; founded 1955 in Atlanta, GA
  • Listed on the SBA Franchise Directory — eligible for expedited SBA loan processing
Ready to fund your Aaron's franchise?

Total startup cost breakdown

Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for an Aaron's franchise runs $239,000–$821,000. The range reflects store size, market, leasehold build-out, and initial inventory:

  • Franchise fee: $35,000
  • Real estate and leasehold improvements: $50,000–$250,000 (retail strip or freestanding; showroom build-out)
  • Initial lease-to-own merchandise inventory: $75,000–$300,000 (furniture, appliances, electronics)
  • Delivery truck(s): $25,000–$80,000 (new or used; delivery is a core operational function)
  • Point-of-sale and lease management technology: $10,000–$25,000
  • Signage and branding: $10,000–$30,000
  • Training and travel: $5,000–$15,000
  • Grand opening marketing: $5,000–$20,000
  • Working capital (3 months): $15,000–$50,000
  • Permits, insurance, professional fees: $9,000–$36,000

Ongoing fees

Aaron's charges a 6% royalty on gross revenues plus marketing fund contributions. The royalty reflects the brand's nationwide recognition, proprietary lease management technology platform, and ongoing franchisee support. Operators should model collections performance carefully — lease-to-own return rates on merchandise affect net revenue and inventory lifecycle costs.

Financing options

Aaron's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:

  • SBA 7(a) loan: Covers franchise fee, leasehold improvements, initial inventory, delivery vehicles, and working capital per the SBA 7(a) program. The $239K–$821K range fits standard 7(a) loan structures.
  • SBA Express loan: Well-suited to the lower end of this investment range — SBA Express (up to $500K) offers faster approval for qualified operators.
  • Equipment financing: Delivery trucks and point-of-sale technology can be financed separately over 3–5 years.
  • Inventory financing / floor plan line: Initial lease-to-own merchandise inventory can be financed through an inventory or working capital line of credit.
  • Working capital line of credit: Covers collections-cycle variability and seasonal merchandise demand shifts.

Realistic ROI timeline

Lease-to-own retail concepts at the $239K–$821K investment level typically target break-even within 24–42 months. Aaron's resilient demand base — serving consumers who need flexible payment options rather than traditional financing — helps maintain revenue stability during economic softness. Operators who manage collections efficiently and minimize merchandise return rates achieve stronger unit economics. Delivery logistics and inventory lifecycle management are the primary operational levers.

Who's a good fit

Aaron's suits operators with retail management, operations, or consumer finance backgrounds who understand collections discipline and inventory lifecycle management. The lease-to-own customer base requires strong customer service and relationship management skills. Financial benchmarks typically include net worth of $250K+ and liquid capital of $75K+. Operators in underserved suburban and secondary markets where consumers have limited retail credit access find strong demand for Aaron's lease-to-own model.

What lenders look for in an Aaron's franchise application

Aaron's is on the SBA Franchise Directory, so SBA-approved lenders can process applications without individual agreement review. The lease-to-own model's unique revenue structure and inventory-heavy collateral profile create specific underwriting considerations at $239K–$821K. Here is what lenders evaluate per SBA SOP 50 10 8:

  • 20–25% equity injection at $239K–$821K — lenders require $48K–$205K in verified equity before SBA commitment; the wide investment range reflects store size and initial inventory depth, so equity injection scales accordingly across the range
  • Lease-to-own inventory as collateral — discounted heavily — Aaron's initial merchandise inventory ($75K–$300K in furniture, appliances, and electronics) is treated as collateral at 50–60% of cost under SBA collateral policy; lender discount on used consumer merchandise may be higher (40–50%) after the first lease cycle, reducing collateral value as inventory ages
  • Collections return rate assumption in DSCR — Aaron's revenue model depends on lease payment collection from credit-challenged consumers; lenders assess the operator's projected return rate (merchandise returned before lease completion) and its impact on net revenue; pro forma projections should use realistic return rate assumptions, not best-case collection scenarios
  • Delivery truck fleet as commercial vehicle collateral — Aaron's delivery operations require 1–3 trucks per location; commercial vehicles are separately financed and valued at 80–90% of loan value as lien-based collateral; the truck fleet provides meaningful collateral coverage separate from the SBA 7(a) real estate and inventory position
  • Collections management experience reduces execution risk — lenders for Aaron's franchise loans favor applicants with consumer finance, retail management, or collections experience; the lease-to-own business model requires daily operational discipline that general retail backgrounds don't fully address

Apply for franchise financing

ClearValue Lending works with retail and lease-to-own franchise operators on SBA 7(a), SBA Express, equipment, and working capital financing. Start at small business financing or apply for franchise financing at Find my match. Your file routes to the funding partners best matched to your file.

Sources

  • Aaron's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility review. — SBA Franchise Directory
  • SBA 7(a) loans finance retail franchise startups including leasehold improvements, inventory, delivery vehicles, and working capital. — SBA 7(a) Loan Program
  • All franchise cost and fee disclosures are governed by the FTC Franchise Rule requiring a Franchise Disclosure Document (FDD) be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
  • Qualifying delivery vehicles and lease management technology placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946

Frequently asked questions

What DSCR do lenders require for an Aaron's franchise loan?
SBA guidelines set a minimum DSCR of 1.15×. In practice, lenders underwriting Aaron's franchise loans typically require 1.25×–1.35× to account for the collections return rate uncertainty and the ramp period before a new location's lease portfolio reaches stable recurring revenue. Pro forma projections should use conservative return rate assumptions and model the 6% royalty on gross revenues. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
How much equity do I need to finance an Aaron's franchise?
SBA requires a minimum 10% equity injection of total project cost. At $239K–$821K, lenders typically expect 20–25% — meaning $48K–$205K in documented borrower equity. Personal savings or ROBS (retirement funds rolled into the business) are the most common paths. The initial merchandise inventory ($75K–$300K) is partially offset by SBA financing, but lenders require documented equity before committing. Source: SBA SOP 50 10 8, Subpart B, Chapter 4.
How much does an Aaron's franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $239,000–$821,000. The franchise fee, initial lease-to-own inventory, and delivery vehicles are the primary cost drivers.
What does Aaron's sell?
Aaron's is a lease-to-own retail concept offering furniture, appliances, and consumer electronics on flexible weekly or monthly lease terms. The model serves consumers who prefer lease-to-own over traditional retail financing.
What is the Aaron's royalty rate?
Aaron's charges a 6% royalty on gross revenues plus marketing fund contributions. Operators should model collections performance carefully as return rates on leased merchandise affect net revenue.
Can I finance an Aaron's franchise with an SBA loan?
Yes. Aaron's is listed on the SBA Franchise Directory. SBA 7(a) can cover the franchise fee, leasehold improvements, initial inventory, and delivery trucks. SBA Express is available up to $500K for qualified operators.
Is the lease-to-own model recession-resistant?
Aaron's lease-to-own model targets consumers with limited access to traditional retail financing, a segment whose demand typically holds or increases during economic downturns when consumer credit tightens. This creates relative resilience versus standard retail.
Summary:

Aaron's franchise startup costs run $239K–$821K for a furniture, appliance, and electronics lease-to-own retail concept. Aaron's lease-to-own model serves credit-challenged consumers who cannot access traditional retail financing, creating a resilient demand base across economic cycles.

This article is for educational purposes and is not financial, legal, or tax advice. Rates, fees, qualification requirements, and product availability are illustrative ranges that vary by lender, market conditions, and individual business profile. ClearValue Lending is a funding platform; all financing is subject to lender partner approval and terms. Always read your contract end-to-end and verify specific numbers before signing.

https://clearvaluelending.com/franchises/aarons/cost-to-start

Compare more franchise costs

Cost to Start a Famous Dave's Bar-B-Que Franchise in 2026

Famous Dave's Bar-B-Que franchise startup costs run $828K–$2.45M for a full-service and fast-casual barbecue concept. Famous Dave's award-winning sauces and broad barbecue menu generate strong catering and dine-in revenue across a national footprint.

Read more →

Cost to Start a Ben & Jerry's Scoop Shop Franchise in 2026

Ben & Jerry's Scoop Shop franchise startup costs run $144K–$501K for a premium ice cream retail concept. Ben & Jerry's iconic brand recognition, loyal consumer following, and distinct social-mission identity drive strong trial and repeat among values-aligned customers.

Read more →

Cost to Start a Maui Wowi Hawaiian Franchise in 2026

Maui Wowi Hawaiian franchise startup costs run $94K–$254K for a Hawaiian-themed coffee, espresso, and fruit smoothie concept. Maui Wowi's mobile and event-based format makes it one of the most flexible and low-cost franchise entry points in the beverage category.

Read more →
See your options

Free · Takes ~5 min · No spam