Rent-to-Own

RimTyme Custom Wheels & Tires
Jim Deering
5501 Headquarters Drive
Plano, TX 75024
972/403-4905;
fax 972/403-4923
www.rimtyme.com
www.colortyme.com

Type of rent-to-own business: Custom Wheels and Tires

Company-owned stores: 3

Franchise-owned stores: 13

Expansion plans: “RimTyme is hot and we are expanding nationally right now,” says Jim Deering, director of franchise development. “We have areas of opportunity and room for expansion in all states.” RimTyme’s initial commitment to the business includes developing and opening 20 company operated stores by December 2009.

Type of franchise owner they’re looking for: Small business operating experience is almost a necessity and Wheel and Tire and/or RTO experience is highly regarded.  Capitalization is critical and “that’s why we offer franchisor backed financing” Deering says.  Ideally, he says the right candidate will have at least $150,000 in cash availability with a net worth of at least $400,000. “The franchisees’ initial cash position coupled with our financing produces a winning combination.

Why they’re different: Flexibility and support and financing.  RimTyme provides the “room” for the franchisees to operate with their local markets in mind.  That combined with a 100% franchisee support focus from the headquarters provides the RimTyme franchisee with the greatest potential for success.  The financing puts the franchisee in the position to have enough inventory at each store to guarantee that the customer “can ride today”.

What they’ll do for you: “A lot”, according to Deering, citing things that the company can help with, such as purchasing, accounting, payroll processing, legal assistance and human resources. They’ll help out with 100 percent inventory financing and store opening assistance, including the installation of everything. Training for the franchisee and their managers is state-of-the-art. 

License master franchise rights: No, but will offer Multi-unit store development areas.

Selling primary multiple store location agreements: Yes

Selling franchise agreements for just one store: Yes
Active Franchisee Advisory Board (FAC): No, but a FAC will be formed in 2009 and will help develop the brand by evaluating programs, providing feedback, and assisting in the management of the advertising funds.

Net worth of candidate: At least $400,000.

Franchise fees: $25,000. There is also a second store discount of $5,000 and a third store discount of $7,500.  A big plus is the franchisee does not have to contract up-front for the multiple units to get the discounts.

Royalties: 5 percent