Rent-to-own News - Cleek's makes Aaron's conversion

Cleek's Lease or Own President "Tiger" John Cleek.

"Tiger" John Cleek today announced an agreement with Aaron Rents to convert his Cleek's Lease or Own stores to Aaron's Sales and Lease stores beginning December 1.

The Nov. 17 deal will impact as many as six stores in the central Missouri area and will usher in a series of purchases, sales and consolidations involving fellow Aaron's franchisee and once chief competitor Alex Davis.

First off, Cleek's will sell two of its stores -- Jefferson City and Sedalia -- to Davis. Cleek's will than snap up Davis' Columbia store and consolidate it with Cleek's Worley Street location, also in Columbia.

The agreement also calls for Cleek's to purchase Aaron's corporate store in Moberly, which Cleek said he would consolidate into his existing Moberly location.

Though the deal -- the value of which was not disclosed -- will decrease Cleek's overall store count, he is confident the efficiency of the Aaron's model combined with a thorough franchisee training program will more than make up the difference.

"On Dec. 1, we'll go from nine stores in eight cities to seven stores in six cities, yet our gross revenues will go up almost 10 percent from the start," Cleek said. "Part of being a leader is knowing when to make a change. With this move, we take out our biggest competitor, get a tremendous support and training team, and have ADA's (area development agreements) for future growth in a protected market."

A component of the agreement grants Cleek an ADA in each of the six counties he currently has stores plus additional markets for future expansion in Missouri.

Cleek's Lease or Own employees, managers and owners today began an 11-week training program aimed at preparing staff and smoothing the company's transition to an Aaron's franchise.

Ray Muncy, director of central franchise operations for Aaron's, is heading up the training program, which kicked off this week face-to-face but will also be carried out online.

The Cleek's conversion is by far Muncy's largest, and from what he's seen, the key components are already in place.

"The best thing is that our companies do mirror so many aspects of one another," Muncy said. "It's all about the associates and ownership for the customers. It's very interesting dealing with people who are doing locally what we've been doing and teaching in our program nationally."

Cleek is the current president of APRO and a founding member of the Missouri Rental Dealers Association. His son and Cleek's Lease or Own Vice President John Cleek Jr. is the association's president.

Cleek said he will remain active in the association and will fully participate, along with his employees, in the annual Heartland of America Tradeshow training sessions, though the withdrawal of his company from the buying portion of the show will certainly have an impact.

As an Aaron's franchisee, Cleek's will purchase through that company. He said he is putting his inventory warehouse up for sale.

This month marks Cleek's 52nd anniversary and though a lot has changed since the company -- then Cleek's Appliance and Food Service -- financed freezers full of meat, much remains the same.

"The name on the sign may change, but our core values won't," Cleek said.

Read about other Aaron's conversions here.

mevans@rtohq.org