Jim Deering, director of franchise development for ColorTyme, says calls to his department are usually from rent-to-own (RTO) industry insiders who’ve been in the business for years and are now eager to open a ColorTyme store of their own.
But since the dramatic economic downturn, Deering adds, rent-to-own pros are not the only ones calling him. He’s also hearing from a diverse group of real estate industry professionals — shopping center developers, commercial and residential investors and brokers — all of whom have researched the financial stability of the rent-to-own industry and want to invest in a franchise. “Entrepreneurs want to own a franchise business backed by a winning formula,” Deering says, “and ColorTyme boasts a stellar 30-year track record.”
Deering says the option of renting-to-own is capturing the public’s attention as cash- and credit-strapped consumers worry about how they’ll be able to get the things they need. He points to a recent Money.CNN.com article profiling five retailers bucking the current slump in sales. “They actually compare rent-to-own stores with Wal-Mart, saying Wal-Mart is not the only game in town for shoppers on a tight budget,” Deering says. “They quote retail experts who said ‘rent-to-own is a natural fit for this economy’; ‘consumers can buy over time instead of on credit; and ‘it’s just another way for consumers to get what they want and be responsible about it.’