Buddy's Home Furnishings

Buddy's Home Furnishings Franchise

Ready to get into business for yourself? Becoming a franchisee can be a stable option for entrepreneurs looking for a promising new business endeavor. 

In recent years, the franchise industry has become more successful than ever. In 2022, approximately 8.45 million franchise employees worked to reach a total production output of $826.6 billion, according to the International Franchise Association.

The more entrepreneurs choose the path of owning a franchise, the more growth the industry will experience. If becoming a franchisee sounds like a good fit for you, read on to find out more about an excellent option for getting in on the revenue. 

Reasons to become a franchisee

Becoming your boss can be a gratifying experience, but it can also often come with the struggles and financial woes synonymous with startups. However, an added level of stability comes when partnering with a franchise. 

The company you sign on with will have a track record of success and be able to provide you with guidance, brand recognition and resources that you would not have when starting a business from scratch. 

1. Guidance: Most companies do not decide to pursue franchise development until they have years of business success and have scaled to test that a more extensive operation will work. You can take comfort in the fact that there will be a roadmap when you join.
2. Brand recognition: Franchises already have established marketing strategies, so you will not have to create those tactics alone. You might have to pay an advertising fee as part of your agreement, but it can be well worth the investment.
3. Built-in customer base: People will already know the company's name, relieving you of the long journey to acquire customers and build repeat business. 

Buddy’s Home Furnishings, based in Orlando under the direction of CEO Michael Bennett, has been around since 1961 and now operates over 300 franchise and corporate locations nationwide.

Related: 7 Things You Need to Know Before Becoming a Franchise Owner

Pros and cons of becoming a franchise owner

Starting a new business is often filled with uncertainty. However, starting a business as a franchisee comes with some added perks. Check out the pros and cons to consider before entering into a franchise agreement. 

Related: 3 Key Considerations for the Modern Franchisee

Pros of becoming a franchise owner

As a franchise owner, there are many pros, some of which are:

• There is no experience or level of expertise required in most cases. 
• The franchisor provides online or in-person training and support. 
• An established company ensures trusted systems are proven to work.
• Customer loyalty and brand recognition are built into partnering with a known name.
• The marketing reach of a franchise is more significant than an independent small business. 

Cons of becoming a franchise owner

No business decision is ever 100% full of positives. There will always be less desirable aspects and drawbacks to be prepared for. 

Lack of freedom is one of the most significant factors to be aware of when considering becoming a franchise owner. Yes, you will own that location and might have some wiggle room for how you lead, but ultimately the control is not in your hands. 

The franchisor makes the decisions when it comes to operations, design, branding and other creative possibilities. You may not have the same freedom you would get with an independent business, as you must follow the status quo that the company mandates. 

Other cons of being a franchise owner include the following:

• Restrictions on real estate like building structure, location and layout.
• The cost of initial investment and ongoing fees like franchise fees, royalty fees and license fees.
• You must allow the franchisor access to your finances.

Buddy’s Home Furnishings background information

Before entering a franchise agreement, always consider the company’s story.  

In 1961, Buddy’s was founded in Tampa, Florida. Its mission has always been to help customers afford home necessities by offering affordable payment plans without the stress of credit or financing looming over their heads. 

In 2009, the company decided to franchise to serve a larger audience and reach new markets nationwide. 

What to know about Buddy’s Home Furnishings

Now that you’ve got a bit of history, it’s time to go over the process, costs and everything else you need to know about franchising with Buddy’s. 

What are some critical facts about Buddy’s operations?

As the fastest-growing US company in the rent-to-own industry, Buddy’s Home Furnishings'business model has figured out how to maintain profits while keeping its services affordable. Take a look at the essential RTO services Buddy’s success prides itself on:

1. No credit needed: Buddy’s provides customers with essential products without a long-term commitment or a credit check.
2. Express delivery: Buddy’s store locator allows you to see local pricing on furnishings, appliances and electronics, as well as which items are available for express delivery — 24 hours or less. 
3. Included service and repair: One of the most convenient aspects of Buddy’s Home Furnishings is that it will service, fix, replace or provide loaner items all for free.
4. Flexible payment options: Clients can customize their payment plans and schedules depending on their financial needs. 

Why join the furniture industry?

The furniture industry is recession-resistant. Whether customers are minimalists or maximalists, people need furniture in their homes. 

The furniture market is multi-billion dollar, with revenue in 2023 at $252.90 billion. In addition, the furniture industry's annual growth is projected at 3.98%. 

Why franchise with Buddy’s Home Furnishings?

One of the most important parts of researching a company is understanding the financial commitment it takes to succeed and how much profit you can expect to see. The critical financial requirements and incentives of becoming a Buddy’s franchisee are below.

• Liquid capital: $150,000.
• Minimum net worth: $500,000.
• Total investment: $356,170 - $879,317.
• Initial franchise fee: $39,900.
• Royalty fee: 6%.
• Advertising fee: 2%.
• Veteran incentives: 20% off the franchise fee.

Related: How to Be A Wealthy Franchisee

What will your income be as a Buddy’s Home Furnishings franchise owner? That number varies. However, to give you a better idea of the range franchise locations make, here are some numbers: 

• Gross sales: Top 25% of stores see $1,501,500 average gross sales. 
• Cash flow per store: $369,627.
• The cash flow earned by franchise owners: 25% on average.

Related: The Role and Responsibilities of a Franchisee, Defined

What to expect when becoming an owner of a Buddy’s Home Furnishings franchise

Buddy’s has been a franchisor for years, and it knows the ropes of how to onboard its franchisees to make them successful. 

If becoming a franchise owner seems jarring, remember it may cost just as much, if not more, to start your own small business. Also, Buddy’s offers its franchisees financing that covers the following:

• Franchise fee.
• Startup costs.
• Equipment.
• Inventory.
• Accounts receivable.
• Payroll costs.

Buddy’s Home Furnishings cares about the path of its new franchisees, so it provides 42 hours of classroom training and 60 hours of on-the-job training. Team members are assigned to help you with the following:

• Site selection.
• Lease negotiations.
• Cyber training with proprietary software systems.
• Safety and security procedures and protocol.
• The grand opening.
• Long-term assistance: Toll-free call center, online support, field operations and consultants for one-on-one help.
• Marketing and promotions: Regional and national advertising, website development, email marketing and SEO.
• Loyalty programs.
• Mobile apps.

Related: Are You an Ideal Franchisee? Here's How to Find Out. 

The franchising process with Buddy's Home Furnishings

If you like what you’ve read so far and think Buddy’s could be the right fit for you, then the next thing to do is continue your research and reach out to the company directly. 

During the process, expect to meet with corporate leaders, review the Franchise Disclosure Document (FDD), secure financials, receive training and sign a franchise agreement.

Related: The 23 Items Your Franchise Disclosure Document Must Include  

If you are unfamiliar with an FDD, it is the contract between you and the franchisor. This will be a legally binding contract with all essential information, including:

• Description of the company and its history.
• Any previous or current litigations.
• Bankruptcy history.
• Patents, copyrights and proprietary information.
• Financial statements and receipts.
• All investment costs and fees.
• Details and products and services.

Related: Ready to Commit? - Franchise License Agreement 

Next steps with Buddy's Home Furnishings

If owning a Buddy’s franchise sounds like the right franchise opportunity for you, then it's time to get going. 

Remember to weigh the pros and cons, picture yourself as the owner of your franchise, continue researching franchise information and reach out to Buddy's Home Furnishings to get free info and start the process.

Are you looking for more content to learn all about franchising? Explore the Entrepreneur Franchise Center here.