Changing Tires and Lives: Franchisee Serves Customers and Elevates Employees

Name: David Harrison
Title: President and CEO
Company: Rental Concepts
No. of units: 44 RNR Tire Express
Age: 61
Family: Wife Sheila and 2 daughters
Years in franchising: 20
Years in current position: 20

When the Great Recession struck in 2008, David Harrison knew he needed to make a change. He had been a successful RNR Tire Express multi-unit operator for several years, but he saw small businesses everywhere beginning to struggle, and customers at his wheel and tire stores were cutting back on expenses.

Harrison researched several other businesses that used RNR’s rent-to-own model and discovered a demographic that skewed female and toward people without much available cash. He produced a commercial for his stores showing women in conversation about how they could afford to purchase tires. The message resonated with local viewers. 

Along with changing the marketing approach, Harrison led a shift of his RNR stores from large markets to locations in the suburbs. It began with the store in Fort Smith, Arkansas, which became an instant success and has been a top-performing store over the past 15 years.

He and his business partner, Don Parker, have grown their company to 34 RNR Tire Express locations with three more stores in development, and Harrison operates another 10 locations on his own. 

RNR Tire Express uses a lease-purchase model that is unique to the wheel and tire sales industry. Instead of requiring customers to have cash in hand or significant lines of credit, the franchise allows customers to lease tires and wheels with the option to eventually own them. 

“It is our unique sales proposition,” Harrison says. “We give people the opportunity to pay for products in a way that works best for them. If you walk through the door, we will find a way for you to finance your purchase. It is the core of who we are.”

Being able to help customers who may not qualify for traditional payment options or have limited cash on hand is important to Harrison. He was raised in a single-parent household with modest resources and can relate to the struggles people face.

Harrison also has a passion for developing a supportive culture and creating life-changing opportunities for the more than 350 people he employs. It’s more than providing someone with a stable income; it’s dramatically altering their life.

With a successful business strategy, proven business model, and dedicated approach to developing his employees, Harrison has found his calling.

“I was a poor kid from a poor community, but other people invested and took a chance on me,” Harrison says. “They encouraged me to become self-educated about business and to motivate others. It is not just about making that person’s life better, but changing the trajectory of an entire bloodline.” 

PERSONAL

First job: I had an early start at 10 years old, when I spent my weekends working at a produce stand. 

Formative influences/events: The roughest and most formative year for our company came in 2008. It served as a catalyst to the great heights we have reached and will continue to reach. During this time, my partner, Don Parker, and I transformed our group into a new model for running a business in the rent-to-own space. We took those hardships and used them to focus on streamlining and maximizing our operations. It was also during this time that we were the first to expand into suburban markets. With the industry heavily focused on metropolitan areas, we worked hard to show the value and potential of these developments. While it was a challenging time, we came out with an efficient model that has continually delivered success.

Key accomplishments: Opening our location in Fort Smith, Arkansas. We look back now and see it was a large turning point for our portfolio. Not only was it profitable within the first 90 days, but it also set various milestones for the entire franchise system from 2011–2022. Even today, this location is still a top performer. 

Biggest current challenge: The two biggest challenges our organization has faced recently are hiring and the rising cost of real estate. While hiring has ebbed and flowed since the pandemic, commercial real estate has continued to rise, almost doubling within the past three years. 

Next big goal: Reaching $100 million in revenue by 2030.

First turning point in your career: In 2010, after five years as president and CEO of the company, I finally felt like I wasn’t just holding the position; I was leading with purpose and shaping the organization’s future. It was the moment when I truly stepped into the role, confident in my ability to drive meaningful impact and chart a clear path forward.

Best business decision: My best business decision was going into business with my partner, Don Parker. It’s rare to find someone in life with whom you can build a legacy, and I feel incredibly fortunate to have found him. Our shared belief in our success gave us the confidence to set out and create everything we have today. 

Hardest lesson learned: I’ve learned that people are capable of incredible things when given the opportunity, but they’re also capable of making mistakes. The key is knowing when to take a big bet on someone. It’s about recognizing potential and focusing on the good even when things don’t go perfectly. 

Work week: Work for me feels like an endless game of chess. This means our organization is constantly strategizing and thinking about our business from the moment we wake up to the second we close our eyes.

Exercise/workout: I participate in strength training and cardio. 

Best advice you ever got: “Work smarter, not harder” and “In the absence of a leader, one will emerge.”

What’s your passion in business? My passion is using the talents God gave me to create opportunities for others.

How do you balance life and work? As entrepreneurs, we pour so much of ourselves into our work because it’s more than just a job; it’s our identity. While I prioritize time with family and loved ones, the business remains equally as important.

Guilty pleasure: Red wine.

Favorite book: The Four Agreements by Don Miguel Ruiz.

Favorite movie: “Arthur.”

What do most people not know about you? That I suffer from imposter syndrome some days.

Pet peeve: Bad grammar. 

What did you want to be when you grew up? A dentist.

Last vacation: The last vacation I took was with my family to Alaska in 2023.

Person you’d most like to have lunch with: I would like to have one last lunch with my departed mother.

MANAGEMENT

Business philosophy: Our organization is founded on the belief that happy team members are more productive, present, and fully embrace the company culture. This creates an environment where anyone can rise through the ranks from entry-level positions to top management.

Management method or style: Driving culture through a boots-on-the-ground management style. Team members need a clear sense of who our organization leaders are and what we stand for within the organization. This is hard to do if you don’t make the effort to regularly visit locations. We are the first to offer growth opportunities and new experiences to those who demonstrate a strong desire to develop their skills and advance. 

Greatest challenge: One of our biggest challenges has been navigating economic fluctuations while maintaining high operational standards. Ensuring consistency across multiple regions requires constant adaptability.

How do others describe you? As strategic and results driven and also approachable and team oriented. Leaders at our organization are known for fostering strong relationships and leading by example. 

Have you ever been in a mentor-mentee relationship? What did you learn? Yes. Mentorship has been invaluable. I have been fortunate in my position to pass down lessons and best practices that I have learned firsthand in my experience. Mentorship is the key to keeping our legacy alive, and building up future leaders is a part of that process.

One thing you’re looking to do better: I have a strong commitment to our team members and continuously seek new ways to offer growth opportunities, mentorship, comprehensive training, and additional support to help them thrive and advance in their careers. 

How you give your team room to innovate and experiment: Our organization encourages our teams to be vocal about new ideas and processes. You never know what may come from it. From my perspective, we started our business with an idea and a dream that it would be half as successful as it currently is. It goes to show that encouraging that process in your team members might spark something great.

How close are you to operations? I keep a heavy tab on day-to-day operations as CEO. With multiple locations across the U.S., it’s important to tune in to the challenges, operational efficiencies, and team members. This level of awareness will better prepare you for certain changes in the economy, demand shifts, and peaks and valleys in business.

What are the two most important things you rely on from your franchisor? Support with marketing initiatives and access to robust training programs are critical for our success.

What you need from vendors: Reliability and responsiveness. Vendors must be consistent in delivering quality products on time to support our day-to-day operations.

Have you changed your marketing strategy in response to the economy? How? In the current economy, everyone is making tweaks to keep things moving, and we’re no different. But the rent-to-own model naturally shines when times get tough. It’s designed to help our customers get what they need without overextending their finances. That said, we’re not just coasting on the model’s strengths. We’re staying proactive, and marketing is a big part of how we keep our name front and center in the communities we serve. It’s about staying relevant and showing up where it matters most.

How is social media affecting your business? Social media is a growing tool that a business must invest in to stay relevant. Our team has switched about 40% of our advertising budget to social. We actively want our quality service to be reflected through our reviews, encouraging customers who recently were in-store to leave their feedback through Google reviews. 

In what ways are you using technology (like AI) to manage your business? We leverage technology throughout our business, including purchasing auto stock, tracking moving merchandise by market, growing our internal marketing program, and ensuring just-in-time delivery. AI is used on our website for live interaction with customers, serving as an important resource for customer service. 

How do you hire and fire? We prioritize hiring for cultural fit and potential. It is the lifeline of our business, especially for managers at locations we may only visit a few times a year. Unfortunately, firing is an essential part of any business as one bad team member can create a hostile culture.

How do you train and retain? Training is ongoing with a mix of hands-on and digital learning tools. We work hard to make every team member feel seen and known. Our retention comes from recognizing achievements and offering clear paths for advancement and ongoing opportunities.

How do you deal with problem employees? We address issues promptly by holding one-on-one discussions, setting clear expectations, and providing support to help them improve.

Fastest way into your doghouse: Failing to take ownership of mistakes.

BOTTOM LINE

Annual revenue: $70 million.

2025 goals: In 2025, we hope to open three more stores and grow to $75 million in revenue. 

Growth meter: How do you measure your growth? Our growth is tracked through revenue benchmarks, customer satisfaction scores, and new store openings. 

Vision meter: Where do you want to be in five years? 10 years? In five years, we hope to have increased our presence by around 12 stores and hit a goal of $100 million in revenue. In 10 years, we hope to be watching the brand continue to soar with an increased national footprint and continuing to raise revenue rates.

Do you have brands in different segments? Why/why not? We do not. We have found a business that has given us success, passion, and the means to fulfill our lifelong goals. We remain loyal to our industry.

How is the economy in your region(s) affecting you, your employees, your customers? Economic shifts have impacted discretionary spending, which means we need to adjust pricing and promotions accordingly. But this economy does prove to be a great time for our business in the rent-to-own space. Many who would be unable to purchase a new set of tires in full are now able to do so with affordable payments.

Are you experiencing economic growth in your market? We continue to see economic growth in our market. If you have a car, tires are essential goods. They take you to work and get your kids safely to school. What we do is important because while people might be suffering from the economic impacts of inflation, they don’t have to worry about going into overwhelming debt to have a safe car.

How do changes in the economy affect the way you do business? If you are prepared and have a good pulse on your operations, any shift is navigable with the right plans in place. The end goal is to be agile in your decision-making. 

How do you forecast for your business? We use a combination of historical data, market trends, and customer analytics to create accurate forecasts.

What are the best sources for capital expansion? We have great relationships with several local banks, and we tend to get the best terms and rates from them.

Experience with private equity, local banks, national banks, other institutions? Why/why not? I’ve spoken to private equity groups in the past, and whether it’s the right choice depends on your goals. If you can’t fund growth, private equity can be a good option. However, in my experience, the interest on a loan is much cheaper than taking on an equity partner. I had a transformative relationship with a regional bank years ago, specifically with the bank’s market president. The gentleman had a reputation for deeply understanding his bank’s large customers in his market. He wanted to know everything, like our leadership structure, succession plans, market outlook, and even what kept me up at night. His level of scrutiny was unparalleled, and it prepared me to confidently present loan proposals to bank presidents and boards. Thanks to him, I’ve never felt intimidated by a banker. One of the most valuable lessons I learned from him was to always be transparent. Never let your banker be surprised and deliver both good and bad news yourself. 

What are you doing to take care of your employees? Our team members are essential to our operations. We offer competitive benefits, continuous training, and we prioritize taking care of them so that they can take care of our customers. 

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? We’re optimizing operations and finding efficiencies to absorb increased costs without compromising on team member benefits.

What laws and regulations are affecting your business, and how are you dealing with them? Labor laws and healthcare regulations have required us to stay proactive in compliance through legal counsel and regular training.

How do you reward/recognize top-performing employees? We offer public recognition and opportunities for advancement.

What kind of exit strategy do you have in place? We have plenty of years left before we plan on exiting.