With 63 years in Business, Buddy’s Home Furnishings has Perfected a Playbook for Success in the Rent-to-Own Market
The Buddy’s Home Furnishings franchise has demonstrated its supreme staying power. During its 63-year history, the brand has weathered nine recessions that helped the leaders of Buddy’s Home Furnishings hone best practices into a playbook for success in the robust rent-to-own marketplace.
Grand View Research appraised the global furniture rental market at more than $52 billion in 2022 and predicted a compound annual growth rate of 7% from now through 2030. The U.S. rent-to-own market was valued at $11.95 billion in 2023, according to Research and Markets, which projected a total exceeding $18.1 billion by 2029.
Mitchell Lee, senior director of franchise development for Buddy’s, says the franchise is geared to create financial independence for its owners. “We provide comprehensive training, marketing support and ongoing operational assistance.” Training includes live classes, online instruction, performance evaluations, on-site support during the grand opening, ongoing in-store training visits, and an annual leadership conference that celebrates the brand’s family-like network of people helping one another.
A Sustainable Business
Income from Buddy’s stores gives franchisees “the freedom to make choices that align with their personal and professional goals without being constrained by financial limitations,” says Lee. “It’s about building a sustainable and rewarding business that allows them to live life on their terms.”
He credits Buddy’s recession resistance to “flexible payment plans that provide customers with affordable access to high-quality name-brand furniture, electronics and appliances.” Although Buddy’s stocks items customers want such as smart TVs, many of the stores’ products are needs-based — refrigerators and beds, for example. Also contributing to Buddy’s longevity is its strong national name recognition and the fact that technology and the internet can’t undermine rent-to-own businesses.
The Buddy’s Home Furnishings franchise has “a strong community presence and customer-centric approach. We build lasting relationships with our customers, offering flexible payment options and top-notch service. We are dedicated to positively impacting the neighborhoods we serve and supporting our franchisees in achieving their dreams,” Lee says. “Franchisees benefit from multiple revenue streams, including rental income, sales and service fees, with comprehensive support from our corporate team,” he says. Another appeal of the rent-to-own model is that the same item, such as a sofa, for example, may be rented more than once.
The 300-plus Buddy’s Home Furnishings franchises operating today benefit from a healthy supply chain that offers more than 30,000 items, bringing more choices to customers and franchisees. Buddy’s franchise units may be converted from independent furnishings stores.
Multi-Unit Ownership
Franchisees attest to the power of the Buddy’s playbook by scaling up their businesses — 91% are multi-unit owners. “The average Buddy’s franchisee owns about 10 units,” Lee says. The top 25% of Buddy’s stores average $1.45 million in annual gross sales.
What Franchisees Say
Patrick Ruland was a Buddy’s Home Furnishings franchise supplier before he opened an Alabama franchise for the “financial freedom it would afford me and my family. … I went with people I knew and trust.”
“The purchasing department takes a huge load off your back. It tells you what’s hot, what’s working,” says Martin Fontela, COO of a 60-plus-unit franchisee. “That data is priceless.”
Multi-unit owner Alex Melvin of North Carolina and South Carolina, with Buddy’s for eight years, says “If you follow the system, your franchise can take off, and it’s simple.”
“Rent-to-own is a very good environment right now,” says Jerry Marshall, owner of eight Virginia stores. He likes that Buddy’s is “people-oriented and relationship-driven” like himself.
For more information about the Buddy’s Home Furnishings franchise, visit https://buddysfranchising.com/.
