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.
Aaron's is a furniture, appliance, and consumer electronics lease-to-own retail franchise founded in 1955 in Atlanta, Georgia. The brand operates 1,200+ company-owned and franchise locations across the United States and serves consumers who prefer flexible weekly or monthly lease-to-own terms over traditional retail credit. Aaron's target customer often has limited access to conventional retail financing — making the lease-to-own format resilient across economic cycles, as demand typically holds or increases during downturns when consumer credit tightens. The model carries higher revenue per transaction than traditional retail but requires active collections management and inventory lifecycle discipline. Prospective franchisees should review the current Franchise Disclosure Document (FDD) under the FTC Franchise Rule (16 CFR Part 436).
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:
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.
Aaron's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:
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.
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.
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 7:
SBA 7(a) is the standard structure — covering franchise fee, leasehold improvements, initial inventory, and working capital under a 10-year term. Delivery trucks are typically financed separately under commercial auto or equipment financing. Use our SBA loan payment calculator to model monthly payments at your target loan amount before applying.
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).
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 7, Subpart B, Chapter 4.
ClearValue Lending works with retail and lease-to-own franchise operators on SBA 7(a), SBA Express, equipment, and working capital financing. Apply for franchise financing at Find my match. Your file routes to one matched lender.
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.
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.
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.
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.
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.