Aaron's Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Aaron's is a rent-to-own retail franchise offering furniture, appliances, electronics, and more on flexible lease-to-own terms. Franchisees run stores managing leases, deliveries, payment collection, and merchandise under state rent-to-own rules.
FranchiseVerdict summary · 2026
A Aaron's franchise requires a total initial investment of $307K – $838K, including a $14K – $35K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $307K – $838K
- 36th pct Retail
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 18th pct Retail
- Units
- 1,183
- 43rd pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $307K – $838K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSFY2024 financials of The Aaron's Company, Inc. are split into Successor (Oct 4-Dec 31, 2024) and Predecessor (Jan 1-Oct 3, 2024) periods due to a change-in-control pushdown accounting election; the 2024 figures here are the sum of the two periods. Franchise Royalties and Other Revenues 2024 = $23,548K (5,774 + 17,774). Net loss 2024 = -$44,064K (-6,403 + -37,661). 2023 (Predecessor) net earnings = $2,823K.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- LEGAL20 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Aaron's, LLC
- Parent company
- The Aaron's Company, Inc.
- Ultimate parent
- KMJ, LLC
- CEO title
- Interim Chief Executive Officer
- Cory Miller
- Incorporated in
- Georgia
- HQ
- 400 Galleria Parkway SE, Suite 300, Atlanta, Georgia 30339
- Auditor
- Elliott Davis
- Audited financials
- Franchisor revenue
- $2.1B
- vs $2.0B prior year
Affiliated brands
- Aaron Investment Company
- Retail RTO Solutions
- Woodhaven Furniture Industries
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Cory Miller
- Headquarters
- Georgia
- Founded
- 1962
- FDD year
- 2025
- States available
- 43
Can you afford it, and what does the money buy?
Entry cost runs 39% above the typical retail franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $100K | $240K |
| Equipment, build-out, other | $172K | $563K |
| Total initial investment | $307K | $838K |
Source: Aaron's 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $307K – $838K
- Top 40% of category vs category
- Liquid capital req'd
- $100K – $240K
- Middle of category vs category
- Franchise fee
- $14K – $35K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $6K |
| Renewal fee | $3K |
| Inventory (initial) | $120K – $160K |
| Total fee load | 6.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Aaron's did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Aaron's unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
FY2024 financials of The Aaron's Company, Inc. are split into Successor (Oct 4-Dec 31, 2024) and Predecessor (Jan 1-Oct 3, 2024) periods due to a change-in-control pushdown accounting election; the 2024 figures here are the sum of the two periods. Franchise Royalties and Other Revenues 2024 = $23,548K (5,774 + 17,774). Net loss 2024 = -$44,064K (-6,403 + -37,661). 2023 (Predecessor) net earnings = $2,823K.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.5% — below the Retail average of 8.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -2.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail averages
How Aaron's Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,183
- Opened
- 9
- Last reporting year
- Closed
- 4
- Turnover rate
- 1.8%
- Company-owned
- 959
- Corporate units in the system
- % franchised
- 19%
- vs corporate-owned
- Net growth (3-yr)
- +2.3%
- Net unit change over 3 years
- 3-yr CAGR
- -2.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 4
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 1
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 43 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
43
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $3.2M
- Median loan
- $377K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (6 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Aaron's presents HIGH RISK due to stagnant unit growth, extensive litigation including FTC consent orders and data breaches, undisclosed financial performance preventing ROI validation, and regulatory concerns that may destabilize corporate support.
Litigation (Item 3)
Item 3 discloses 20 actions (1 pending, 19 concluded). Matters include a 2025 securities/fiduciary-duty suit over the 2024 going-private transaction; an ADA accessibility class action; multiple PC Rental Agent privacy suits (Byrd, Winslow, Price, Peterson); a TCPA class action (Grogan, $2.175M settlement); franchisee disputes (Kaco, MKW); and numerous FTC and state AG investigations/consent orders (FTC store-swap and privacy CIDs, Texas AVC, California AG $25M restitution, Pennsylvania AVCs, Washington no-poach AOD). Aaron's appeared as both plaintiff and defendant.
Largest disclosed settlement: $2,175,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Elliott Davis
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 50 / 100 verdict
- 01MEDStagnant unit growth (1.8% YoY) indicates mature/declining system with limited expansion support
- 02MEDNo disclosed average revenue or net income prevents ROI validation and suggests Item 19 absence in FDD
- 03HIGHExtensive litigation history including FTC consent orders, data security breaches, customer privacy violations, and ongoing securities class action creates legal/reputational risk
- 04MEDHigh initial investment ($307k-$838k) combined with 6% royalty and undisclosed profitability creates payback period uncertainty
- 05MINORMultiple FTC investigations and consent orders signal regulatory scrutiny over business practices (reciprocal purchase agreements, data security)
- 06MINORGoing-private transaction class action indicates shareholder disputes and potential corporate instability affecting franchisee support
- 07MINORCustomer privacy violations ('PC Rental Agent' software) and data security issues create operational liability risk for franchisees
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Cobb County, Georgia (litigation forum; disputes go to non-binding mediation first) |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 20 |
View Item 3 litigation summary
Item 3 discloses 20 actions (1 pending, 19 concluded). Matters include a 2025 securities/fiduciary-duty suit over the 2024 going-private transaction; an ADA accessibility class action; multiple PC Rental Agent privacy suits (Byrd, Winslow, Price, Peterson); a TCPA class action (Grogan, $2.175M settlement); franchisee disputes (Kaco, MKW); and numerous FTC and state AG investigations/consent orders (FTC store-swap and privacy CIDs, Texas AVC, California AG $25M restitution, Pennsylvania AVCs, Washington no-poach AOD). Aaron's appeared as both plaintiff and defendant.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 67 hrs
- Training location
- Aaron's headquarters in Atlanta, Georgia, an Aaron's-owned store, or franchisee's store (E-Training Classroom)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Aaron's proprietary POS software system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Aaron's proprietary POS software system
Item 20 · call current owners
Franchisee Contacts
52 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Aaron's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Aaron's franchise?
The total investment to open a Aaron's franchise ranges from $307K – $838K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Aaron's franchise owners earn?
Aaron's does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Aaron's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Aaron's FDD and qualifies whose outlets they describe.
What is Aaron's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Aaron's (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Aaron's franchise locations are there?
As of their most recent FDD filing, Aaron's has 1,183 total units in the United States, including 224 franchised units and 959 company-owned units. 9 new units were opened in the latest reporting year.
Is Aaron's a good franchise to buy?
FranchiseVerdict rates Aaron's as a B-grade franchise with a verdict score of 50 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.