Rent-to-own News - Buddy's grows legacy with licensing expansion

Buddy's Home Furnishings -- one of the premier independent rent-to-own companies -- is continuing its tradition of innovation and customer service through an aggressive licensing campaign that has expanded the company by 16 stores and five states in just under two years.

Under the direction of seasoned RTO veteran Todd Homberger, president of franchising at Buddy's since 2008, the seminal rent-to-own chain now claims 75 stores, adding territory in Arkansas, Kansas, Louisiana, Texas and Oklahoma to its base of corporate stores in Florida and Georgia.

Homberger and Buddy's promise to open even more territory in 2009.

Homberger, a former executive with Rent Way who joined Buddy's in January 2008, said Buddy's is looking for seasoned multiple store operators -- the rental dealer's rental dealer -- who can take advantage of Buddy's unique business model and "back of the house" support including marketing, purchasing, accounting, payroll, IT, human resources and training.

"Make no mistake," said Homberger, himself a Buddy's licensee with two stores in Oklahoma.  "We are very selective. My job is to protect the company name. The beauty here is the 'back of the house' that's been in business since 1961. We've got a buying and marketing program that's second to none and that gives us the ability to bring on some very talented people."

Todd Homberger, Buddy's president of franchising.

One of those seasoned Buddy's licensees is Dave Scarafiotti, president and majority controlling interest in Buddy's four-store investment group known as ArkLaTex -- a group which claims development rights for south Arkansas, east Texas and Louisiana.

Scarafiotti, a 23-year industry veteran who left a position as a regional director for Rent-A-Center last year to come on board with Buddy's, opened his fourth store in December 2008 -- a 35,000 square foot RTO megaplex in Shreveport, Louisiana, that now shares the title of world's largest single rent-to-own store.

When former Rent Way colleague Homberger came calling, Scarafiotti knew the chance to open a Buddy's was too good to pass up.

"I felt like the opportunity open at Buddy's was much stronger than the competing franchises," Scarafiotti said. "The name recognition, the history and people like Ina Mahoney (Buddy's Buyer) and Terry Beville (Buddy's CFO and vice president) are phenomenal 'back of the house' support that allowed me to focus on renting and collecting and managing my people."

In addition, a progressive profit sharing structure made recruiting "talented managers who understand the business" a snap. Scarafiotti said three of his four stores opened over the last six months are already turning a profit, an unheard of proposition that has launched his goal of opening seven stores in his first two years.

Dave Scarafiotti, president Buddy's ArkLaTex licensing group.

Adrian Rosales is president and licensee of the four store Buddy's investment group, West Texas RTO Ventures, which is in charge of development of West Texas with all current stores located in El Paso, Texas.

Rosales has been in the business since 1993 and has worked for the small mom and pop rent-to-owns as well as the large corporate companies including a stint with Rent Way where he actually opened stores with Homberger.

For Rosales it was simple. Homberger's leadership combined with Buddy's reputation and history, made for an unbeatable business proposition.

"The biggest thing for me at first was Todd, because I know him and he's the kind of guy that's going to be right there with you," Rosales said. "But when I met Jamie (Slatton) and Terry (Beville) I was really impressed how they wanted to meet with me personally. What a great group of people. You can tell the difference between Buddy's and the typical corporate owned store immediately."

Rosales said he plans to open his fifth store in east El Paso sometime next fall.

Additional Buddy's licensees include Chuck Haver, president of Buddy's initial  investment group that opened five stores in Arkansas and Kansas and Marty Beuk, a 15 year Buddy's employee who, as a regional manager, oversaw 30 of the company's stores.

As a licensee he now oversees one in Sarasota, Florida; and that's just the way he likes it.

"You gotta trust the people you work with and I've been working with these people a long time," Beuk said. "It's a little scary, but it's exciting at the same time. The best part is I'm back with the customers and running my own store, and that's where I want to be."

Buddy’s Home Furnishings is a Tampa, Florida-based company founded in 1961 by Norman Slatton Sr. and his wife Lois Slatton. Since that time, Buddy’s has served over two million customers. For more information on Buddy's licensing opportunities contact Todd Homberger 813/613-5461 or 972/890-4499 or Sal Moccia 813/6235461 ext180.


mevans@rtohq.org