Local Appliance Rentals
Description: Run a Local Appliance Rentals franchise, earning steady and regular income on payments for items hired out from your business - TVs, electronics, furniture, outdoor equipment and more. Opportunities: Across UK & IE. Business Type: Franchise. Minimum Investment: £49,500. Financing Assistance: Yes, through a third party. Training Provided: Yes. Home-based: Yes. Part-time: Yes.
Local Appliance Rentals
You Name It, We Rent It
Why wait when you can rent it today?
LAR are the obvious first-choice experts in consumer hire, renting anything and everything from TVs, electronics, furniture, and white goods, to outdoor play equipment for the kids over a medium to long-term period, typically 24 months. ‘You Name It, We Rent It’. Small weekly affordable payments. Everyone wins and that makes a great business.
8 years young, with over 140 franchisees in only 4 years of franchising
LAR hold all the aces for success and are notably proven. This complete package includes initial training on a multitude of aspects within the business model, and more importantly, permanent, genuine on-the-ground support on a daily basis. The results speak for themselves, with the average franchisee owning 5 territories over time, indicating the model is highly scalable. LAR are looking for new energetic partners with an appetite for growth and success, who also appreciate the value of individual control over their own business and the shared ethos of 'the harder you work, the luckier you get'.
The business was originally created and subsequently well developed - to say the least - by CEO, Ken French in Australia, who patiently built up his local rental book over 4 years until selling his active book astonishingly to his core supplier.
The LAR franchise was born. Australia now has over 100 franchisees, and as part of an international expansion drive, franchisees are now operating in the UK, New Zealand and the States, along with current interest also in Ireland. Franchisees in the UK are doing exceptionally well, which adds even more gloss to the proposition considering there are already 20 franchisees since the first appointment, starting their operation in June of 2014.
A day in the life of a franchisee
Either being a sole operator or a small team of 2-3 generally entails following workable pre-designed effective marketing activities, not cold calling or hard selling, taking inbound enquiries to outright orders, assessing the customer’s needs and meeting strict affordability criteria for new business. Also visiting the customer, ordering goods, organising delivery and maintaining a healthy relationship with the customer base including any non-payments, which is indeed manageable with LAR’s experience, knowledge and leadership.
The business is largely driven through effective referral and retention of customers is very high. Again the business is highly scalable, leading to strong potential to add resources and help manage an increased workload if so desired.
A strong rental book requires dedication and commitment over time, however the reality is this business will reach the point where the rental payments just keep rolling in - even when you are not there - over and above the figures needed to fuel next month’s demand for new business. That right there is the winning formula which allows franchisees to actually realise their hard-earned profits, as well as still growing the business.
In addition, it can easily be put under management. Depending on one’s objectives, franchisees can either remain steady at 1-2 territories and afford their time back for their family and other activities, or there is real scope to reinvest to further build the asset value.
Our business strategy
Local Appliance Rentals’ business strategy is a deliberate slow-burn model due to the nature of small weekly payments in order to achieve a self-funding rental operation. Typical ROI is 2 years, with maximum outlay around month 13 based on a predetermined achievable and realistic forecast. The second year is about recouping your initial investment to date while still growing your rental book in line with your forecast. Year 3 onwards is what makes this business worthy of an expression of interest for further discussion. Genuinely interested parties will not be disappointed.
The foundation of recurring rental payments, combined with a high retention rate of customers, meaning regular repeat business, creates a much valued passive income stream which directly correlates to a highly valuable underlying asset. This all amounts to a very attractive exit strategy proposition with proven, albeit limited resale examples over the last few years since franchising.
Successful UK franchisees
Existing UK franchisees have outperformed initial expectations with a number of early stand-out performers. A dozen franchisees are now on their way to 300 contracts, which proves demand as the model describes. The Stoke/Hanley franchisee has opened a store after after writing 400+ contracts in their first 8 months, which put them on track for a £500k gross profit first year on an accrual basis. They couldn't be happier.
LAR has announced unlimited funding for franchisees to help drive their growth once proven.
Be it first-time business owners, or part-timers to the sophisticated investor searching for the next viable diversification opportunity, this model ticks many boxes. If you enjoy the challenge of business then make yourself known. LAR welcome expressions of interest for all areas across the UK today.
With only 5% penetration so far into the territories available, combined with proven success in the UK already, there could not be a better time to secure your preferred territory.