Discover Rental-Purchase Extends Guarantee To Franchisors

RTO Online:

One of the primary consumer benefits of the rental-purchase transaction is the ability to return merchandise at any time and for any reason with no further obligation. Discover Rental Purchase has taken this concept a step further by offering a similar option to its franchisees.

According to Jim Steger, Discover’s vice president of franchise development, the company added a “Happiness Guarantee” to its franchise agreement. “If after twelve months our Discover franchisee is not completely happy, for any reason, we will refund the franchise fee, purchase all equipment, signage, company vehicles and rental agreements,” Steger said. In most cases, Discover will even assume lease agreements.

Company officials say they added the guarantee because, in an uncertain economic environment, potential franchisees are weighing risks more cautiously. Discover franchises both traditional rent-to-own stores and custom wheel operations.

According to Steger, who joined the company in September 2008 (see story), Discover Rental Purchase is the only franchisor in the rent-to-own sector providing such a guarantee. “Investors have an unprecedented opportunity for significant ROI with little to no risk.”