In a departure from Aaron's traditional monthly payment model, RIMCO will also add a weekly payment option on custom wheel and tire lease agreements.

Michael Waltrip at a recent RIMCO launch party. Waltrip and Rimco unveiled a new line of MWR branded wheels in October (see story). The wheels feature the MWR logo and are available exclusively at participating Rimco locations.

RIMCO, the custom wheel and tire leasing division of Aaron Rents (NYSE:RNT), will combine operations in 20 of its company-owned stores with adjacent Aaron's Sales and Lease Ownership stores. The co-branding effort will begin immediately and will only affect corporate RIMCO stores that are located adjacent to corporate Aaron's locations. Company officials also said they will focus on expanding franchise operations and will not open additional corporate RIMCO stores. While no stores will be closed due to the co-branding, the move will reduce staffing at the affected locations.

Until now, most of the co-branded locations have been joined by a common doorway but have been operated as a separate entity with a separate P&L explained John Allevato, Vice President of RIMCO. Allevato told RTO Online that combining operations will reduce expenses. "We looked at it from a profitability standpoint and made the decision that we would rather run those stores as a department within an Aaron's rather than as a separate storefront," Allevato said. "We're just going to roll them together. The inner workings of a RIMCO are exactly the same as an Aaron's. We're just combining the renewal departments."

In a departure from Aaron's traditional monthly payment model, RIMCO will also add a weekly payment option on custom wheel and tire lease agreements at its free-standing locations. Aaron's typically serves customers that are wiling to renew their lease monthly or semi monthly. Allevato said the weekly payment option will help RIMCO keep customers currently being lost to other wheel rental companies, the majority of which accept weekly renewals. Allevato said, "The addition of a weekly payment option will considerably broaden RIMCO's customer base."

Allevato said Aaron's remains committed to the wheel and tire business. "We see wheels and tires as a viable product line and will continue to service the market," he said. "We're not getting out of the business. We just restructured it."

After the co-branding effort is complete, RIMCO will have 9 free standing franchise locations, 21 co-branded Aaron's/RIMCO corporate locations and 10 free standing corporate stores.

Allevato told US Business Review in September that RIMCO had over 10,000 active customers.