1851

Over the last 30 years,<a href="https://1851franchise.com/rentacenter" style="text-decoration-line:none" target="_blank"> Rent-A-Center</a> has risen to the highest levels of brand recognition with nearly 2,500 locations and dominance of around 35 percent of the entire rent-to-own market space in the U.S. Over the last year in particular,<a href="http://www.racfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-rent-a-center-diversifies-financial-lenders-portfolios-by-refranchising-with-experienced-multi-unit-owners-2709787" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank"> Rent-A-Center</a> has leveraged its unique positioning to empower local business owners to franchise corporate-owned locations around the country.

With more than 250 of the brand&rsquo;s stores now owned by franchisees local to their markets, Rent-A-Center&rsquo;s<a href="https://1851franchise.com/rentacenter/franchise-transformation-process-sets-up-new-rent-a-center-franchisees-for-success-2706612#trending" style="text-decoration-line:none" target="_blank"> refranchising effort</a> continues to target experienced multi-unit franchisees looking to purchase the rights to an entire market as area developers. Each market typically consists of 30 to 50 existing stores, allowing owners to hit the ground running with a cash-flowing business.

Rent-A-Center partners with a select group of banks and lenders that have a deep understanding of the business to further the momentum of the brand&rsquo;s refranchising initiative.

&ldquo;While getting uninitiated lenders to understand the complexities of our business is more work on the front end, we&rsquo;ve found that once we get lenders on board, they enjoy the partnership so much that they engage us to present them with additional franchise prospects,&rdquo; said Cathy Skula, Executive Vice President of Franchising at Rent-A-Center.

The rent-to-own leader&rsquo;s business model is unique in that a franchisee purchases not only hard assets in the form of inventory&mdash;furniture, appliances and electronics&mdash;but also a portfolio of customer rent-to-own agreements.

&ldquo;When a franchisee purchases a store, existing customers may be at any point within the 78-week rent-to-own agreement,&rdquo; explained Skula. &ldquo;A franchisee is essentially buying a business portfolio within the business, as customers continue to make their weekly payments after the franchisee purchases the store. Once we get lenders to understand the receivables involved, they become much more comfortable with what differentiates us from a traditional retail business.&rdquo;

Skula said that Rent-A-Center targets lenders with experience in the franchise space looking to diversify their portfolios from food and retail brands. While franchise lenders are most often approached by systems seeking financing options for single- to triple-unit franchisees, Rent-A-Center offers lenders a valuable opportunity to work exclusively with established owners who are subsequently also looking to diversify their portfolios by entering the unique segment.

&ldquo;We match our lenders with<a href="https://1851franchise.com/rentacenter/rent-a-center-signs-another-massive-40-unit-franchise-deal-2708932" style="text-decoration-line:none" target="_blank"> franchise prospects looking to buy 30 to 50 or more stores</a>. These prospects are all well-heeled, well-qualified franchisees. They&rsquo;re not typically people looking to liquidate their 401(k)s and open their first business&mdash;they already own 50, 75, or over 100 units in another system,&rdquo; said Skula, &ldquo;And that&rsquo;s very attractive to our lender relationships.&rdquo;

Skula said that one of the most common misconceptions about the rent-to-own space is that losses are high compared with other retail businesses. &ldquo;Because we do not do credit checks, people are always surprised to learn how low our losses have run historically,&rdquo; she said.

The refranchising effort thus far has been a major success. &ldquo;Our pipeline is packed, and it&rsquo;s mostly referrals,&rdquo; said Skula. &ldquo;Our existing franchisees have enjoyed controlling local Rent-A-Center markets so much that they are telling other multi-unit franchisees.&rdquo;

Rent-A-Center&rsquo;s Vice President of Finance, Daniel O&rsquo;Rourke, will be speaking at the<a href="https://www.franchisetimes.com/Conferences/The-Franchise-Finance-Growth-Conference/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-rent-a-center-diversifies-financial-lenders-portfolios-by-refranchising-with-experienced-multi-unit-owners-2709787" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank"> Franchise Times Finance and Growth Conference</a> taking place in Las Vegas May 6 to 8. With the support of Skula, O&rsquo;Rourke will give a financial presentation regarding the rent-to-own sector, within which Rent-A-Center is the only brand leading a refranchising effort. They will also address several timely issues affecting the franchise industry at large.

&ldquo;We are in the retail industry, but we are uniquely positioned to be somewhat insulated from Amazon by the nature of our business,&rdquo; said Skula. &ldquo;We are a good diversification play for franchisees of other concepts such as food. Our stores operate with just five employees, which is attractive to those concerned with the impact of rising minimum wages. At the same time, rising wages around the country help our customers. We believe the current environment is opening a lot of opportunities for franchisees interested in getting into our business.&rdquo;

To learn more about franchising opportunities with Rent-A-Center, visit<a href="http://www.racfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-rent-a-center-diversifies-financial-lenders-portfolios-by-refranchising-with-experienced-multi-unit-owners-2709787" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank"> http://www.racfranchising.com/</a>.

<div>&nbsp;</div>

How Rent-A-Center Diversifies Financial Lenders’ Portfolios By Refranchising With Experienced Multi-Unit Owners

1851 Franchise

The rent-to-own industry icon works closely with a handful of selected lenders to bring on established franchisees to own 30 to 50 units per local market.

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

how-rent-a-center-diversifies-financial-lenders-portfolios-by-refranchising-with-experienced-multi-unit-owners

Griswold

Home for the Holidays: How Griswold Helps Families Stay Connected and Cared For During the Most Important Time of Year

home-care-holidays-griswold-support

United Water Restoration Group

image of water restoration group Air Force veteran Nathan Sherman

Is United Water Restoration Group the Right Franchise Opportunity for First-Time Business Owners?

united-water-restoration-group-first-time-business-owners

Paris Baguette

image of Paris baguette franchise owner success

The Recipe for Success: A Step-By-Step Guide to Opening a Paris Baguette Franchise

paris-baguette-franchise-process

Onigilly Japanese Kitchen

Image of Onigilly restaurant franchise Reports Record 2025 Growth in Fast Casual

Onigilly Japanese Kitchen Closes 2025 With Record Sales Growth and Expanding Franchise Pipeline

onigilly-franchise-2025-growth-fast-casual

Pool Scouts

Pool Scouts Franchise - 2025 Annual Convention - Dallas TX - 1851 Franchise

Pool Scouts' 2025 Conference Sets the Stage for the Brand's Next Phase of Growth

pool-scouts-2025-conference-recap

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Domino's Franchise - North Pole - Dec 2025 - 1851 Franchise

Domino’s Pizza Brings Delivery Cheer to North Pole, Alaska

dominos-pizza-franchise-north-pole-alaska

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

No-H2O Franchise Deep Dive - Costs, Fees, Profit and Data - 1851 Franchise

No-H2O Franchise Costs, Fees, Profit and Data for 2025

no-h2o-franchise-deep-dive

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

ellianos-coffee-franchise-costs-fees-profit-and-data

Christmas Decor Franchise Costs, Fees, Profit and Data for 2025

christmas-decor-franchise-costs-fees-profit-and-data

Scenthound Franchise Costs, Fees, Profit and Data for 2025

scenthound-franchise-costs-fees-profit-and-data

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Supplies and Retail Franchises for 2025

the-top-15-pet-supplies-and-retail-franchises

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

image of michael panos and michel panos, owners of mellow mushroom in Atlanta

How Rent-A-Center Diversifies Financial Lenders’ Portfolios By Refranchising With Experienced Multi-Unit Owners

MORE STORIES LIKE THIS