What Are Some Alternatives to Rent-A-Center Franchises?

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What Are Alternative Franchise Chains to Rent-A-Center Franchise


Looking for alternatives to Rent-A-Center franchises? Discover a variety of business models that offer similar revenue streams and customer bases, providing diverse opportunities for entrepreneurial success. Explore these compelling options and find the perfect fit for your investment goals, including a comprehensive Rent-A-Center Franchise Business Plan Template to guide your venture.

What Are Some Alternatives to Rent-A-Center Franchises?
# Alternative Franchise Chain Name Description
1 RimTyme

RimTyme is a specialized RTO franchise focusing on custom wheels and tires, targeting automotive enthusiasts with higher-margin products and less direct competition. Its unique niche in the automotive aftermarket, with average rental agreements generating around $2,200, sets it apart from traditional home goods RTO models.

2 Showplace Rent-To-Own

Showplace Rent-To-Own, an affiliate of the American Rental Association, offers extensive franchisee support, including proprietary software and group purchasing power, with a strong regional brand presence in the Midwest. Their performance-based royalty structure and high franchisee satisfaction rate, with many multi-unit operators, highlight a scalable and supportive system.

3 ColorTyme

ColorTyme, with a total initial investment similar to RimTyme, provides franchisees access to significant buying power and operational expertise through its affiliation with Rent-A-Center, Inc. Its flexible store footprints and protected territories offer a distinct advantage for franchisees looking to establish market share in rent-to-own furniture, appliances, and electronics.





Key Takeaways

  • Several prominent rent-to-own (RTO) franchise alternatives to Rent-A-Center exist, including Aaron's, Buddy's Home Furnishings, Showplace Rent-To-Own, and specialized models like RimTyme, catering to different investment levels and market niches.
  • The US rent-to-own market is substantial, projected to reach $148 billion in revenue by the end of 2025, with Rent-A-Center holding about 25%, indicating significant opportunity for competitors and alternative RTO models.
  • Typical initial investments for mid-tier RTO franchises in 2025 range from $250,000 to over $850,000, with requirements for liquid capital and net worth varying by brand, but generally necessitating $150,000+ in liquid capital and $450,000+ net worth.
  • While franchises offer established systems and brand recognition, independent RTO startups can lower initial costs by avoiding franchise fees but face higher marketing expenses and a statistically higher failure rate (25% higher in the first three years).
  • Alternative business models like Furniture-as-a-Service (FaaS) and peer-to-peer rental platforms are emerging, offering flexibility for different customer segments and representing growing segments within the broader home furnishings market, though they may not offer traditional franchise structures.


What Alternative Rent-A-Center Franchise Unit Options Exist?

When considering the rent-to-own sector, exploring alternatives to a Rent-A-Center Franchise Unit is a smart move for any entrepreneur. The market is dynamic, and several strong players offer franchise opportunities similar to Rent-A-Center. As of June 2025, prominent rent to own franchise alternatives include national brands like Aaron's and Buddy's Home Furnishings, alongside regional specialists such as Showplace Rent-To-Own and niche operators like RimTyme, which focuses on custom wheels and tires. These companies provide direct competition and represent some of the best rent to own franchise alternatives available.

The US rent-to-own market is robust, with projections indicating it will reach approximately $148 billion in revenue by the end of 2025. While Rent-A-Center holds about 25% of this market, a significant 75% remains open to competitors and alternatives to rent to own franchises. This substantial market share for others highlights a fertile ground for new investors looking into furniture rental franchise opportunities.

When evaluating these rent to own business models, it’s important to note the variations in their structures. For instance, some regional franchises report a 5-7% lower royalty fee structure compared to industry leaders, a key factor for profitability in 2025. Understanding these differences is crucial for making an informed decision when investing in rent to own franchise alternatives.

What are alternatives to a Rent-A-Center business?

As of June 2025, prominent rent to own franchise alternatives to a Rent-A-Center Franchise Unit include major national chains such as Aaron's and Buddy's Home Furnishings, alongside regional players like Showplace Rent-To-Own and specialized RTO models like RimTyme. These companies represent the most direct franchises like Rent-A-Center.

The US rent-to-own market is projected to reach approximately $148 billion in revenue by the end of 2025, with Rent-A-Center holding around 25% of the market. This leaves a significant 75% market share for competitors and alternatives to rent to own franchises, demonstrating a robust landscape for new investors.

Exploring these successful rent to own franchise alternatives is crucial, as many offer different fee structures, territory availability, and support systems. For instance, some regional franchises report a 5-7% lower royalty fee structure compared to the industry-leading brands, a key consideration for profitability in 2025.

How to find alternatives to Rent-A-Center?

Investors can find alternatives to a Rent-A-Center business by consulting online franchise portals, attending franchise trade shows, and reviewing industry reports from sources like the Association of Progressive Rental Organizations (APRO). These resources provide comprehensive lists and comparisons of furniture rental franchise opportunities.

A detailed rent to own business models comparison reveals that while some franchises focus broadly on furniture and electronics, others specialize. For example, the niche for custom wheel and tire RTO is projected to grow by 4% in 2025, offering a targeted alternative to a general home furnishing franchise.

When evaluating franchise opportunities similar to Rent-A-Center, it's vital to analyze their 2024 Franchise Disclosure Documents (FDDs). These documents show that the average net worth requirement for top-tier rent to own franchise alternatives is between $400,000 and $750,000 as of early 2025.


Tips for Exploring Franchise Alternatives

  • Diversify Your Search: Don't limit your research to just the most well-known brands. Look into regional players and niche markets for potentially better fee structures and less competition.
  • Scrutinize the FDD: The Franchise Disclosure Document is your most critical tool. Pay close attention to the financial requirements, royalty fees, and historical performance data.
  • Understand the Business Models: Compare different rent to own business models. Some focus on broad home furnishings, while others, like the growing wheel and tire RTO sector, cater to specific consumer needs.

For those interested in the specifics of starting a business in this sector, understanding the foundational steps is key. You can learn more about how to start a Rent-A-Center Franchise in 7 Steps: Checklist.



What Are The Investment Level Alternatives?

What is the typical investment for RTO franchises?

When considering rent-to-own franchise alternatives, understanding the investment spectrum is crucial. For a mid-tier rent-to-own franchise in 2025, the total initial investment generally falls between $250,000 and over $850,000. This broad range accounts for various factors, including the initial franchise fee, the cost of acquiring inventory, setting up the physical store space, and ensuring sufficient operating capital to get the business off the ground.

To provide a more concrete example, a popular furniture rental business opportunity requires an estimated total investment between $350,700 and $865,500. Within this figure, the franchise fee alone is around $40,000, with an additional $100,000 to $200,000 earmarked for initial inventory purchases. For those looking at franchises like Rent-A-Center, the financial commitment is substantial.

Prospective franchisees looking to enter the rent-to-own sector, whether through established brands or similar opportunities, typically need to demonstrate significant financial capacity. As of 2025, a common requirement is having at least $150,000 in liquid capital and a minimum net worth of $450,000. These figures are essential for securing financing and gaining approval from franchisors.

How do non-franchise RTO costs compare?

Exploring alternatives to Rent-A-Center franchises, such as starting an independent rent-to-own business, can present a different cost structure. By opting out of a franchise agreement, you can bypass the franchise fee, which in 2025 averages between $30,000 and $50,000. However, this cost saving often means a greater investment in other areas, particularly marketing and developing your own operational systems. Expect to allocate around $40,000 for these crucial elements in the first year alone.

Independent operators are responsible for sourcing all their inventory. This can represent a significant upfront cost, with estimates for a new store ranging from $150,000 to $300,000. While comparable to the inventory investment required by franchises, independent businesses miss out on the potential cost reductions that franchisors can achieve through bulk purchasing power, which can typically lower inventory costs by 10-15%.

While these alternative business models for furniture rental offer greater operational flexibility, they also come with a higher degree of risk. Industry data from 2024 indicates that independent rent-to-own startups face a 25% higher failure rate within their first three years compared to businesses operating under a franchise model. This highlights the value of established systems and support provided by franchisors when considering rent to own franchise alternatives.


Key Considerations for Investment Levels

  • Franchise Fee: This is an upfront cost paid to the franchisor for the right to use their brand and business model. For rent-to-own franchises, this can range from $30,000 to $50,000 in 2025.
  • Initial Inventory: A substantial portion of the investment goes into stocking the store with furniture and appliances. This can range from $100,000 to $300,000 or more.
  • Store Build-Out and Equipment: Costs associated with leasing or purchasing a location, renovations, signage, and necessary office or delivery equipment.
  • Working Capital: Funds needed to cover operating expenses during the initial months before the business becomes self-sustaining, typically covering payroll, utilities, and marketing.
  • Liquid Capital and Net Worth: Franchisors often have minimum requirements for readily available cash and overall net worth to ensure financial stability. As of 2025, these are commonly around $150,000 liquid and $450,000 net worth.

For a comprehensive understanding of the financial commitments and potential returns of a specific franchise, it's always advisable to review their Franchise Disclosure Document (FDD). You can learn more about the advantages and disadvantages of owning a particular franchise by reading What Are the Pros and Cons of Owning a Rent-A-Center Franchise?



How Do Rent-To-Own Business Models Compare?

When evaluating rent to own business models, understanding their unique advantages and disadvantages is crucial for any aspiring franchisee or investor. These models offer a distinct approach to consumer goods sales, particularly in the home furnishings sector.

What are the pros and cons of RTO models?

A significant advantage of the rent-to-own (RTO) model is its broad appeal, targeting a substantial portion of the market. As of 2025, approximately 35% of US households face credit constraints, making the RTO model an accessible option for them. However, a notable drawback is the increased regulatory scrutiny and public perception challenges stemming from the effective interest rates, which can be perceived as high.

Franchisees in the RTO sector often benefit from predictable, recurring revenue streams. The typical customer agreement in this industry lasts around 18 months. Conversely, a major challenge is inventory depreciation. Furniture and electronics can lose as much as 40% of their value in the first year alone, impacting profitability.

Franchise opportunities within the RTO space provide established operating systems and brand recognition, which is a significant plus for new business owners. However, franchisees must account for royalty fees, typically ranging from 5-7% of gross revenue. These fees directly influence the store's net profit margin, which is projected to average between 8-12% for the industry in 2025.

What are alternative business models for furniture rental?

Beyond traditional RTO, several alternative business models cater to furniture rental needs. These include subscription-based services, often termed Furniture-as-a-Service (FaaS), traditional long-term leasing agreements, and emerging peer-to-peer rental platforms. Each model serves different customer segments and offers distinct value propositions compared to the ownership-centric RTO approach.

FaaS models have experienced considerable growth, with market penetration increasing by an estimated 15% in 2024. These services are particularly attractive to transient customers, such as students and individuals relocating for corporate assignments. The average monthly subscription cost for FaaS typically falls between $100-$300, a different payment structure than the RTO model's average weekly payment of $25.

When you explore rent to own franchise alternatives, it's beneficial to consider these evolving models. While not all are franchise structures, they represent dynamic segments within the broader furniture rental market. Some companies are beginning to explore licensing or partnership models that can offer a franchisor-like experience, providing avenues for those looking for franchise opportunities in home furnishings.


Key Considerations for Rent-To-Own Alternatives

  • Market Reach: RTO models tap into a large segment of credit-constrained consumers, a key differentiator.
  • Financial Structure: Recurring revenue is a strong point, but be mindful of inventory depreciation and royalty fees.
  • Operational Support: Franchises offer established systems, reducing the learning curve for new owners.
  • Alternative Models: FaaS and peer-to-peer rentals offer flexibility and may appeal to different customer bases.



Alternative Franchise Chain: Aaron's

What is Aaron's franchise investment?

When exploring alternatives to a Rent-A-Center franchise, Aaron's presents a notable option for those looking into rent-to-own business models. For aspiring franchisees in 2025, the estimated total initial investment to open an Aaron's franchise ranges between $350,700 and $865,500. This investment encompasses a franchise fee of $40,000. A significant portion, approximately $100,000 to $200,000, is allocated for the initial inventory, which includes furniture, appliances, and electronics. Prospective franchisees should also be aware of the minimum net worth requirement, which is $450,000.

As one of the established rent to own furniture store franchise options, Aaron's also requires an ongoing royalty fee. This fee is set at 6% of gross revenues, which is a common benchmark for many premier franchises in this sector, including those similar to Rent-A-Center.

What is Aaron's market position in 2025?

As of June 2025, Aaron's holds the position of the second-largest operator within the North American rent-to-own market, boasting over 1,200 company-operated and franchised stores. This makes it one of the most successful rent to own franchise alternatives available. The company's strategic focus heavily emphasizes e-commerce integration, with online sales projected to contribute over 20% of its total revenue in 2025. This represents a 5% increase from 2023, highlighting a key digital differentiator in the home furnishing franchise sector.

Financial data from late 2024 indicates that Aaron's franchise units are achieving an average annual gross revenue of approximately $13 million. This financial performance positions it as a strong contender for individuals seeking robust furniture rental franchise opportunities and exploring other companies like Rent-A-Center.

Initial Investment Range $350,700 - $865,500
Franchise Fee $40,000
Inventory Investment $100,000 - $200,000
Minimum Net Worth Required $450,000
Royalty Fee 6% of Gross Revenues

Tips for Evaluating Rent-to-Own Franchise Alternatives

  • Understand the Total Investment: Always look beyond the initial franchise fee to include inventory, build-out, and working capital. For Aaron's, the $350,700 to $865,500 range is crucial for budgeting.
  • Analyze Market Share: As of 2025, Aaron's is the second-largest player in its market. Researching the market position of any rent to own franchise alternatives is vital for competitive analysis.
  • Assess Digital Strategy: With online sales projected to be over 20% of revenue for Aaron's in 2025, a strong e-commerce component is increasingly important for success in the home furnishing franchise sector.

For those interested in learning more about the specifics of starting a franchise in a similar industry, exploring resources like How to Start a Rent-A-Center Franchise in 7 Steps: Checklist can provide valuable insights into the operational aspects, even when considering alternatives to the Rent-A-Center business model.



Alternative Franchise Chain: Buddy's Home Furnishings

When exploring alternatives to established names in the rent-to-own sector, considering franchises like Buddy's Home Furnishings offers a compelling path for entrepreneurs. This brand presents itself as a robust option within the furniture rental franchise opportunities landscape.

How much does a Buddy's franchise cost?

For those looking at franchises like Rent-A-Center, understanding the investment is key. As of 2025, the total estimated investment to open a Buddy's Home Furnishings franchise falls between $339,400 and $817,700. This range positions it as a competitive choice among rent to own franchise alternatives.

The initial franchise fee is $40,000. A significant portion of the total investment, typically between $130,000 and $180,000, is dedicated to the opening inventory package. This inventory is a critical asset for any business operating under rent to own business models.

Buddy's also requires prospective franchisees to possess at least $150,000 in liquid capital. The ongoing royalty fee is set at 5% of gross sales, which is generally considered on the lower end when compared to other top-tier rent to own franchise alternatives.

What is Buddy's growth outlook for 2025?

Buddy's Home Furnishings is currently experiencing a strong growth phase. They have ambitious plans to open between 25-30 new franchise locations in 2025, aiming for a 10% increase in their total store count. This makes it an attractive avenue for investing in rent to own franchise alternatives.

The company's expansion is supported by its commitment to franchisee support and a slightly more adaptable operating model compared to some of its larger competitors. Their 2024 Franchise Disclosure Document (FDD) indicates a 7% year-over-year growth in system-wide revenue, highlighting a positive trajectory for these furniture rental business opportunities.

As a significant player among franchise opportunities similar to Rent-A-Center, Buddy's boasts over 300 locations. They are actively seeking to expand into underserved markets, presenting new territory opportunities for prospective franchisees interested in home furnishing franchise ventures. For those researching alternatives to Rent-A-Center business, Buddy's offers a well-established brand in the home furnishing franchise space.


Tips for Evaluating Home Furnishing Franchises

  • Analyze Territory Availability: Ensure the franchisor has available territories that align with your market entry strategy.
  • Review Franchisee Testimonials: Seek out feedback from existing franchisees to gauge satisfaction and operational support.
  • Understand the Business Model: Compare different rent to own business models to find one that best suits your financial goals and operational preferences.

Investment Range $339,400 - $817,700
Initial Franchise Fee $40,000
Liquid Capital Requirement $150,000+
Ongoing Royalty Fee 5%

When considering different franchise opportunities similar to Rent-A-Center, it's beneficial to compare their financial structures. For instance, the Rent-A-Center franchise itself, based on data from its latest FDD, requires an initial investment ranging from $355,268 to $560,225, with an initial franchise fee of $35,000 and a royalty fee of 5.50%. This comparison can help potential franchisees identify the best rent to own franchise alternatives that align with their financial capacity.

Exploring alternatives to rent to own franchises like Buddy's can lead to discovering successful rent to own franchise alternatives. For a deeper dive into the specifics of one particular option, you can read What Are the Pros and Cons of Owning a Rent-A-Center Franchise? This resource can provide valuable context for your decision-making process as you explore the best rent to own franchise alternatives available.



Alternative Franchise Chain: RimTyme

What is the investment for a RimTyme franchise?

For those exploring alternatives to traditional home furnishing franchises, RimTyme offers a specialized rent-to-own (RTO) model focusing on custom wheels and tires. As of 2025, the total initial investment for a RimTyme franchise typically ranges from $291,475 to $547,750. This investment includes a franchise fee of $35,000. A significant portion, estimated at $100,000 to $150,000, is allocated for initial inventory, primarily custom wheels and performance tires. This niche RTO approach positions it as a distinct option among rent to own franchise alternatives. The ongoing financial commitments include a royalty fee of 5% of gross sales and a 1% contribution to an advertising fund, which is competitive within the specialty franchise sector.

What makes RimTyme a unique RTO model?

RimTyme carves out a unique position in the RTO market through its narrow product focus on the automotive aftermarket. This sector alone represented a $51 billion industry in the US as of 2024, highlighting a significant market opportunity. This specialized strategy differentiates it from broader rent to own business models that typically offer a wider array of home goods. By concentrating on automotive customization, RimTyme targets a specific customer demographic—automotive enthusiasts—who may not be the primary clientele for companies like Rent-A-Center. On average, a rental agreement within this model generates approximately $2,200 in revenue over its term. As one of the more compelling alternatives to a Rent-A-Center Franchise Unit, RimTyme leverages higher-margin products and faces less direct competition from the general furniture and appliance retail sector. In 2024, gross profit margins on rentals were reported to be as high as 65-70%.

Investment Range Franchise Fee Initial Inventory Royalty Fee
$291,475 - $547,750 (2025) $35,000 $100,000 - $150,000 5% of Gross Sales
Industry Focus Target Demographic Average Rental Revenue Gross Profit Margin (2024)
Automotive Aftermarket ($51 Billion in 2024) Automotive Enthusiasts ~$2,200 per agreement 65-70%

Tips for Evaluating Niche RTO Franchises

  • Analyze the specific market demand for specialized RTO products in your chosen territory.
  • Understand inventory management for specialized items like custom wheels and tires, as it differs from home furnishings.
  • Assess the franchisor's support system for niche product sales and customer service.
  • Compare royalty and advertising fees against industry benchmarks for similar specialized franchises.



Alternative Franchise Chain: Showplace Rent-To-Own

What are Showplace's franchise fees in 2025?

When considering alternatives to established brands, understanding the financial commitment is key. For a Showplace Rent-To-Own location, the initial franchise fee in 2025 is set at $25,000. This positions it as a more accessible entry point compared to many national rent-a-center franchise alternatives. The total estimated investment for a new location typically ranges from $412,500 to $709,000.

The royalty structure is designed with franchisee profitability in mind. It begins at 4% of gross rental revenue and decreases as sales volumes grow. This performance-based fee is a notable differentiator among furniture rental business opportunities. Additionally, there's a 1% advertising fee, contributing to the overall investment structure aimed at supporting franchisee success.

How does Showplace support its franchisees?

Showplace Rent-To-Own offers robust franchisee support, being an affiliate of the American Rental Association (ARA). This includes access to proprietary point-of-sale software and ongoing training programs. Furthermore, franchisees benefit from group purchasing power, which can lead to inventory cost reductions of up to 12%. This is a significant advantage when looking at furniture rental franchise opportunities.

The company has a strong regional presence, primarily in the Midwest, offering a community-focused alternative to larger, national chains. Their operational model emphasizes strong store-level management and building solid customer relationships. This approach makes it one of the more accessible rent to own furniture store franchise options.

Showplace reports a high franchisee satisfaction rate, with over 80% of its locations being owned by multi-unit operators as of late 2024. This indicates a scalable and supportive system for those exploring alternatives to rent to own franchises or seeking franchise opportunities similar to Rent-A-Center.


Tips for Evaluating Rent-to-Own Franchises

  • Compare Fee Structures: Look beyond the initial franchise fee. Understand royalty rates, advertising fees, and any other ongoing charges. For instance, Showplace's sliding scale royalty is a key factor in its rent to own business models comparison.
  • Assess Support Systems: Evaluate the training, technology, and operational support provided. Strong support is crucial for success, especially for first-time franchisees in the rent to own business models.
  • Analyze Market Presence: Consider the franchisor's brand recognition and market penetration. A strong regional presence, like Showplace's in the Midwest, can offer a competitive edge against larger national competitors.
  • Review Franchisee Satisfaction: Data from multi-unit owners, like Showplace's 80% multi-unit ownership rate, can be a strong indicator of a successful and supportive franchise system.
  • Understand the Investment: Carefully review the total estimated investment range. For context, while Showplace's initial fee is $25,000, the total investment can range up to $709,000. Compare this to How Much Does a Rent-A-Center Franchise Cost? for a comprehensive understanding of the market.

Financial Aspect Showplace Rent-To-Own (2025 Estimate) Rent-A-Center (FDD Data)
Initial Franchise Fee $25,000 $35,000
Total Estimated Investment $412,500 - $709,000 $355,268 - $560,225
Royalty Fee Starting at 4% (sliding scale) 5.50%
Advertising Fee 1% 3%
Key Metric Showplace Rent-To-Own (Late 2024) Rent-A-Center (FDD Data)
Multi-Unit Ownership Rate Over 80% Not specified in provided data
Average Annual Revenue per Unit Not specified in provided data $253,548 (Average)
Breakeven Time Not specified in provided data 24 Months


Alternative Franchise Chain: ColorTyme

When exploring alternatives to a Rent-A-Center franchise, ColorTyme emerges as a strong contender within the rent-to-own (RTO) sector. This brand offers a compelling opportunity for entrepreneurs interested in furniture rental franchise opportunities.

Initial Investment for ColorTyme

The initial investment to launch a ColorTyme franchise is estimated to range from $291,475 to $547,750 as of June 2025. This investment range positions it similarly to its affiliate, RimTyme, and is considered an accessible entry point for a home furnishing franchise.

  • The upfront franchise fee is $25,000 for new franchisees.
  • An estimated $80,000 to $120,000 is allocated for opening inventory, covering a variety of furniture, appliances, and electronics.
  • ColorTyme, like other established franchises in the RTO industry, charges an ongoing royalty fee of 5% of gross revenues as of 2025.

ColorTyme's Competitive Advantage

ColorTyme distinguishes itself through several key advantages, making it one of the best rent to own franchise alternatives. Its affiliation with Rent-A-Center, Inc. (under Franchise Group, Inc.) grants access to significant buying power and extensive operational expertise, while maintaining its unique brand identity.

A notable benefit for franchisees is the flexible store footprint options. This allows for the establishment of locations in smaller markets that might not be suitable for larger competitors, a crucial consideration when evaluating rent to own business models.

Furthermore, ColorTyme provides franchisees with a protected territory. This means that no other ColorTyme store will be opened within a defined area, which typically encompasses approximately 25,000 households, thereby safeguarding a franchisee's market share. This is a significant factor when comparing rent to own business models.

Investment Component Estimated Cost Range
Initial Franchise Fee $25,000
Opening Inventory $80,000 - $120,000
Total Initial Investment $291,475 - $547,750 (as of June 2025)
Financial Metric ColorTyme (Estimated) Rent-A-Center (FDD Data)
Initial Franchise Fee $25,000 $35,000
Royalty Fee 5% 5.50%
Low Initial Investment $291,475 $355,268
High Initial Investment $547,750 $560,225

Tips for Exploring Rent to Own Franchise Alternatives

  • Analyze Territory Protection: Understand the specifics of the protected territory offered to ensure it aligns with your market entry strategy.
  • Evaluate Brand Affiliation: Consider the benefits of being part of a larger network, like the buying power and support systems ColorTyme offers through its parent company.
  • Assess Market Flexibility: Look for brands that provide adaptable store models, allowing you to tailor your presence to local market conditions.

For those interested in the mechanics of starting a similar business, understanding the process for related ventures is key. You can find detailed guidance on How to Start a Rent-A-Center Franchise in 7 Steps: Checklist.