CCUK Brochure 2006 Mk11.qxd
Transcription
CCUK Brochure 2006 Mk11.qxd
CCUK Brochure 2006 Mk11.qxd 11/4/06 2:46 pm Page 1 FRANCHISING CCUK Brochure 2006 Mk11.qxd 11/4/06 2:46 pm Page 2 FIVE FACTS ABOUT CASH CONVERTERS THAT YOU PROBABLY DIDN’T KNOW! WELCOME TO THE EXCITING WORLD OF CASH CONVERTERS FACT ONE... Cash Converters are the largest retailer of pre- FACT FOUR... Cash Converters have developed a Cash Converters pioneered the transformation of buying and selling of At Cash Converters we believe that our franchisees should do the owned goods in the world. sophisticated Intranet system for marketing information and stock pre-owned goods. It has brought the operation out of the back streets talking. That is why, if you are interested in taking a franchise, we offers and have IT solutions which handle everything from stock and today it is positioned alongside leading high street retailers, with encourage you to meet existing franchisees as part of your decision control, administration, management reports and accounts links. the additional offering of a wide range of Financial Services. Our making process. Joining a franchise is an excellent method to save business proposition is second to none. time and money by using tried and tested formula – choosing the best FACT TWO... The first store opened in South Western Australia in 1986 and the network has expanded rapidly to over 500 stores franchise is key. in over 20 countries. There are now over 110 stores throughout the FACT FIVE...Cash Converters UK have pioneered an e-bay style UK and Ireland. online auction site which is now being adopted worldwide Visit one of the many hugely successful stores around the UK and throughout the franchise massively expanding the potential retail you’ll find a wide selection of products on sale at margins often If you would like to find out more about the exciting and profitable business base. considerably higher than when the product was originally sold. world of Cash Converters, we would be delighted to meet and discuss pounds in the UK developing the brand. A near-continuous high Combine this unique buying and selling retail concept with a range of this opportunity. Please call our Support Centre on 01920-485 696 or profile television advertising campaign and full local support with popular financial services and you have a business that is less visit our website at www.cashconverters.co.uk and take the first step in-store promotional material and promotional activities help to susceptible to fluctuations in economic conditions than virtually any towards success. maintain our place as leader in our field. other. Some of our franchisees will even tell you that our business is FACT THREE...Cash Converters have spent over 15 million recession proof. All have realised the great potential of the Cash Converters concept, and in fact many own more than one store. Occasionally people in FRANCHISING business make investment mistakes, but rarely do they repeat them. 02 03 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:46 pm Page 4 WHAT DOES A CASH CONVERTERS DO? BUYING AND SELLING The concept of buying and selling goods is as old as civilisation A UNIQUE MIX OF WIDELY APPEALING PRODUCTS itself. Whatever the prevailing economic climate or latest political A Cash Converters store is divided into two distinct areas, a retail upheaval it remains a constant feature. sales area and the buying and financial services department. The retail area maximises the potential of the available floor space At Cash Converters we provide today’s consumers with a modern, while a separate section is created for buying stock and clean, professional and convenient environment in which to sell processing financial service transactions. used or unwanted goods for cash instantly. We also offer a great place to shop for pre-owned bargains plus a range of financial services catering for all sectors of the population including the PAWNBROKING ‘BUYBACKS’ – short term re-purchase options millions of adults in the United Kingdom who do not have access to CHEQUE CASHING bank accounts or mainstream credit facilities. SECURED AND UNSECURED LOANS LOG BOOK LOANS – secured against a motor vehicle Cash Converters believes in the highest standards of presentation and service. All stores are branded with our corporate colours, PAYDAY ADVANCES CASH CONVERTERS MINI STORES to a minimum, with stores operating on reduced staffing levels As world leaders in the buying and selling of pre-owned goods, Cash (typically 4 per unit) and as all retail stock is displayed behind glass, retail techniques. We are continuously evaluating and adding new Converters are constantly looking at new ways to expand potential stock shrinkage is virtually non-existent. Turnover is obviously likely to products and services to our already extensive range. markets for franchisees. be less that a full-size store but conversely the level of management systems and signage. Our support personnel are trained in modern WESTERN UNION MONEY TRANSFER required to control the business less demanding. Whereas many other franchises involve the distribution of products One of these new developments is the Cash Converters ‘Mini Stores’ purchased from the franchisor, Cash Converters trains its concept. The first of which opened in the UK in May 2000, and as the Many existing franchisees have franchisees in the effective use of its proven business system. We name suggests they operate from a smaller retail unit than full-sized seen the benefits of these then offer a level of support to our franchisees, which sets us apart Cash Converters stores. Whilst you will find the same range of small, profitable and easy to with a unique mix of widely appealing services. products and services on offer the most striking difference is the cut run units operated in down retail space and the fact that all stores retail merchandise is conjunction with larger store displayed behind glass. franchises, but they are proving equally attractive to single store franchisees. To date Cash Converters have opened over Cash Converters UK owns and operate a number of company mini stores and are have an expansion programme rolling out the concept A CASH CONVERTERS STORE OFFERS AN EXTREMELY DIVERSE AND CONSTANTLY EVOLVING RANGE OF PRODUCTS. BUYING STOCK FROM CUSTOMERS DAILY, OUR FRANCHISEES CAN ENJOY A HIGH DEGREE OF FLEXIBILITY IN PRICING, ALLOWING THEM TO RESPOND TO FLUCTUATING ECONOMIC CYCLES. THE GROWING PLATFORM OF FINANCIAL SERVICES AVAILABLE FURTHER ENHANCES THE STABILITY OF BUSINESS TO CHANGING ECONOMIC CONDITIONS. 04 in the North West of England. All these new stores are based on this successful business model. Due to the reduced retail areas the size requirements are reduced (typically Mini stores are between 750-1000 sq ft) and consequently the set-up costs are considerably lower. Running costs are also kept FRANCHISING 50 mini stores in the UK. 05 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:46 pm Page 6 PARTNERSHIPS – GROWING YOUR BUSINESS BECOMING A FRANCHISEE Cash Converters has established partnerships with companies in These benefits come with no additional operating costs to Q. DOES IT MATTER WHAT BACKGROUND I COME FROM? related markets enabling every store to offer a wider range of services the store and the stores earn income by providing facilities Our existing franchisees come from a diverse range of backgrounds, to potential customers and therefore grow the income streams or business leads. their individual endeavours together with the proven support systems, available to each business. These high profile companies all offer experience and encouragement offered by Cash Converters has something different but complementary for the customer and the Cash Converters is delighted to have built such a strong and resulted in the establishment of many hundreds of successful store. In many instances we undertake additional joint advertising and successful relationship with such well established and reputable franchises throughout the world. marketing activity with these companies. market-leading companies, and in turn they enjoy the many benefits of a partnership with the UK’s leading secondhand retailer. YOUR ROUTE TO YOUR STORE RESEARCH FRANCHISES CASH CONVERTERS INTERVIEW Whatever your background, the level of support we provide to our franchisees is what sets us apart. We use independent consumer Many companies continue to approach Cash Converters, and where it research and customer profiling data to evaluate the potential of each is appropriate, we investigate the benefits to the franchise network. new location. You will receive advice and assistance in developing SIGN PRELIMINARY AGREEMENT STORE VISITS & APPRAISAL your own personal business plan. Once your territory is identified we will provide help with locating a suitable site, negotiating the lease, surveying costs, shop drawings and design, construction estimates, computer hardware, stationery, signage and initial stock. Cash Converters provides a detailed critical path right up to and beyond your store opening. BUSINESS PLAN & FINANCIAL PLANNING FIND PREMISES & LEGAL REQUIREMENTS STAFF FRANCHISE RECRUITMENT & SHOPFITTING TRAINING PROGRAMME OPENING MARKETING PLAN STAFF TRAINING WORLD LEADER IN INTERNATIONAL MONEY TRANSFERS From the very beginning we will help you market your business effectively within your locality. A range of point of sale materials will meet all in-store needs. Professional assistance is available to design and plan adverts and local campaigns. This is supported by a national marketing strategy, using television and radio, designed to promote EIGN E H ANG E FOREIGN EXCHANGE C ORNER S HOP L OANS UNSECURED PERSONAL LOANS WE ARE ENJOYING STRONG GROWTH IN THE UK AND ANTICIPATE THAT THE NUMBERS OF CASH CONVERTERS STORES SHOULD EXPAND TO 300 OVER THE NEXT FEW YEARS. DUE TO OUR EXCELLENT TELEVISION ADVERTISING CAMPAIGN THE CASH CONVERTERS BRAND IS BECOMING A HOUSEHOLD NAME FOR THE SERVICES THAT WE OFFER. 06 STOCKING & MERCHANDISING STORE OPENING FRANCHISING R the Cash Converters brand. Nothing is overlooked or left to chance. XC FO LOANS USING THE VALUE OF A CAR AS SURETY 07 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:46 pm Page 8 CCUK SUPPORT CENTRE INFORMATION TECHNOLOGY WHAT SUPPORT WILL THERE BE WHEN I OPEN? At Cash Converters we invest heavily in Information Technology. Our dedicated in-store computer system CCWin manages the daily The Support Centre and Operational Team functions, it features: Cash Converters’ Central Support Services is dedicated to helping you • and your business succeed. Individual levels of access and control for every member of staff – BaySoft is a dedicated on-line cheque cashing service which allows definable by the administrator Cash Converters to offer customers a third party cheque cashing facility. Capture of customer details with photographic facility • Customer postcode verification guide” to the procedures, regulations and requirements surrounding all • ID system incorporating the current CCUK points system aspects of cheque cashing. It offers instant information on current • Unique barcode allocation on all products for easy tracking banks or building societies. The user-friendly system has a “step-by-step Training and Development Full training support is given to all new franchisees joining the network. From the beginning of your store based training you will be helped, guided and monitored by your dedicated training and development manager. New staff are also trained in store to ensure your business gets Further training and development for both franchisees and Cash Converters has a worldwide Intranet that enables almost • • managers/staff is through the external workshops delivered by the training and development managers. These workshops cover the skills Printed document generation for Buys, Buybacks, Loan Extensions, instantaneous communication with the entire UK store network. Pawnbroking, laybys and credit notes/gift voucher Providing the latest information via a weekly newsletter, it also offers Easy management and control of business cashflow with various graded stock deals, training information and updates, plus can be used cash locations for exchanging information and advice between franchisees. It enables easy communication between the entire Cash Converters UK network and • Fully featured stock control system, plus a quick and easy stock offers a wealth of information. required to drive your business forward and currently include: • TRAIN THE TRAINER cheques and customers within the Cash Converters network. throughout the business the best possible start. Once open the training manager will make store visits to assist you implement a successful training culture in your store. It enables cheque cashing through operations and outlets, other than • taking system with easy to operate hand held scanners • Easy stock transfer facility between stores • BUYING SKILLS We also provide a full reporting and analysis facility of all key ratios • SELLING SKILLS within the business, by day/week/month, etc, including the performance CCNET IS OUR MAIN COMMUNICATION TOOL – THIS • BUSINESS MANAGEMENT SKILLS of individual staff. Remote access is available for Franchisees (from any KEEPS YOU INFORMED OF NEW PRODUCTS AND • PAWNBROKING broadband enabled location) and remote dial-in access is installed for swift online support. MARKETING INITIATIVES AS WELL AS CONTAINING • CHEQUE CASHING ORDERING INFORMATION ON EVERYTHING THAT • MERCHANDISING YOU’LL NEED TO KEEP THE BUSINESS RUNNING • BUYING AND SELLING JEWELLERY – LIKE A FRANCHISEE OPERATIONS MANUAL under development. In addition to these workshops franchisees are invited to attend the Cash Converters Business Academy, an intensive three day residential course which challenges you to look closely at your store in the company of experienced fellow franchisees and the Support Centre team. 08 FRANCHISING In such a dynamic and changing business new courses are always 09 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:47 pm Page 10 BRAND INVESTMENT ONLINE SALES Sky Sports 1, 2, 3 & Sky Sports News Cash Converters is the largest buyer and seller of pre-owned goods in the UK. Whilst there is a thriving local trade, the advent of online marketplaces such as E-Bay have hugely expanded the global market. E-sales is currently the fastest growing sector of the retail market and Cash Converters UK has developed a comprehensive e-commerce platform for the national store network that is now being adopted by the worldwide Cash Converters franchise network. Stores can add individual items either for auction or sale on this cost-effective and fully integrated system gaining access to this additional income stream. Auction features • SECURE ON-LINE TRANSACTIONS WITH QUICK AND SIMPLE ON-LINE USER REGISTRATION • FULLY INTEGRATED STOCK SYSTEM 12 million pounds has been spent in the last 13 • FULLY SEARCHABLE DATABASE OF ALL PRODUCTS years developing the Cash Converters brand in the • CATEGORY SECTIONS (EG. CD/DVD) FOR EASY ITEM LOCATION • ON-LINE SEARCH ENGINE MARKETING CAMPAIGNS UK. This has helped establish and retain our place as the leader in our field. Our franchisees place value on the brand that they have bought into and it is our job to make sure that the brand value increases. All in-store material and local advertising information plus design assistance is available via the Cash Converters intranet service. A complete package is ready for all new stores. Branding design and development, plus in-store material and television advertising are constantly reviewed and updated. We have embarked on our highest profile advertising campaign yet, and this every other month! High profile television advertising: Market research findings and close monitoring of business performance are used to fine-tune the Discovery Civilisation message that goes out to the public and get the Cash Converters message across to potential customers. This is one of the reasons that the business continues to grow and more and more people are using a Cash Converters store. 10 Discovery Science Discovery Wings FRANCHISING year will be on all Sky channels History 11 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:47 pm Page 12 THE CASH CONVERTERS ADVANTAGE HAVING OWNED A CASH CONVERTERS FRANCHISE FOR OVER A DECADE, AND WITH FIVE STORES OPERATING IN LONDON AND ESSEX, GARY LEWY IS WELL PLACED TO OFFER ADVICE AND HAPPY TO BE QUOTED! Whatever information is included within this brochure, it is the experience of existing franchisees that really counts. Included are real quotes from our franchisees which demonstrate how they feel. ENCOURAGEMENT TO WOULD-BE FRANCHISEES. NOT THAT THEY NEED IT OF COURSE, GIVEN THE DEGREE OF PROFESSIONAL HELP READILY AVAILABLE FROM HEAD OFFICE. Cheque cashing has proved popular for Gary’s customers, while the fellow franchisees are on hand to impart advice and trade knowledge Western Union facility – although non-profit making – also draws from where it really counts – the shop floor. people to the stores. “We’re not just all about making a fast buck; we have to think about why people come to us in the first place.” “The company’s moving forward,” Gary enthuses. “The training’s fantastic and the IT support is great. If we have a problem, we can put As for future ambitions, Gary Lewy wants to open more of the smaller a question out on the Intranet and get feedback from other Cash Converters stores, because they can be run with fewer staff. franchisees that have been in the same situation. “Ultimately the profit margin can be just as good even if you don’t Gary Lewy Barking, Leyton, Walthamstow & Dagenham retail as much as the larger main stores,” he marvels. “We all get together on a quarterly basis and swap ideas,” he adds. “For new franchisees coming on board, there’s a good network in place.” For Gary, the potential for growing business was obvious from the positives and negatives. “There’s proper training at each stage and outset. “With Cash Converters, you have a guarantee of your money; we’ve realised that if we supply our staff with ongoing help then we there doesn’t seem like any gamble involved,” he notes, adding that he get a lot more back.” believes the Cash Converters concept to be ”recession proof”. Gary’s own route into Cash Converters was initially all about keeping it in the family. “I actually found it for my Dad to do,” he recalls. “I saw an ad in the Express under the franchise section and phoned them Bill Beagrie Aberdeen But his biggest advice for would-be franchisees is to listen closely to other franchise owners, who will be only too happy to impart the “HAVING SPENT 15 YEARS IN CORPORATE RETAIL IT IS VERY REFRESHING TO FIND A RETAIL BUSINESS WITH SUCH A DIVERSITY OF PROFIT CENTRES” David Thomson Newcastle & Byker up. He paid a visit to a store, got a partner on board and they tempted me into coming to work for them. Pretty soon I ended up equally important is having a good team of people working together who understand the Cash Converter concept very well,” says Gary, “and don’t try to buy everything very cheaply. Sometimes you think ‘I’ve got a fantastic deal, buying something for a tenner that’s going to retail for £100,’ but that guy will never come back to you. “By giving a fair price that customer will come back and sell you something else,” Gary advises. “Without people selling us things, or loaning money from us, the business can’t carry on.” 12 “An “An excellent return on investment, well in excess of any expectations I may have had” had” Graham Wilkins Chatham begging and borrowing to buy out my Dad’s partner.” When it comes to setting up a store, location is obviously crucial “but “Investors paid back with interest within two years. I am on schedule to make a healthy profit this year” “YOU ARE HELPED BY A STRONG PROFESSIONAL TEAM BOTH IN THE SUPPORT CENTRE AND OUT IN THE FIELD” “Some services, especially chequecashing, are great and the service you get from Cash Converters is excellent. Overall, I think it’s great that we are trying and introducing new ideas and we are now concentrating on the concepts that are working in our stores” Roy and Ann Kelly Warrington Len Smith Wallasey FRANCHISING At each stage of a new franchise’s development, head office and “The return on investment is outstanding! I already have five successful stores and now I am looking for my sixth” 13 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:47 pm Page 14 FINANCIAL INFORMATION OPENING COSTS your contract. Given our regular year on year growth, that means our CASH CONVERTERS FULL-SIZED STORE At Cash Converters we are committed to ensuring your business will franchisees are effectively paying less than they would if charged a Main store offering all financial Providing all the financial percentage of turnover. There are many other advantages but our services and with a retail be a success. One of the key factors in this is establishing the services such as cheque- philosophy is simple, the more successful your business is, the more space selling goods. cashing, pawnbroking, payday required levels of funding you will need to successfully open and trade your own Cash Converters store. The approximate investment is CASH CONVERTERS MINI STORE advances, etc. but with no franchisees will join our business. retail space. All stock bought is outlined below. Clearly these figures will vary depending upon size, location and the amount of shop fitting works required. CASH CONVERTERS ‘MINI’ STORES sold/transferred to other Cash Converters ‘Mini’ stores are smaller versions of full Cash stores. Converters outlets. They operate from a small unit, have less We work with a number of leading banks, and can, subject to status, help you secure part funding of your investment if required. overheads and running costs, and offer a lower entry level into the Cash Converters network. FIXED FRANCHISE FEES We have successfully opened 50 of these stores to date and plan to The company has been equally innovative in developing a franchise open a further 20 over the next two years, 15 of which will be in system designed to improve the traditional franchisee/franchisor London alone. relationship. While many other franchise royalties are based on a percentage of your sales (your fees increase in line with increases in Shown below are the fee structures for a full store and the new Cash sales) at Cash Converters our royalties are fixed for the duration of Converters Mini store. Opening Costs Main Store Mini Store Initial Franchise Fee £19,950 £19,950 Pre-Opening Costs £20,000 £10,000 Shop Fitting £85,000 £50,000 Opening Stock £45,000 £10,000 Working Capital £50,000 £50,000 FRANCHISABILITY, ETHICS AND APPROPRIATE DISCLOSURE PLUS SUCCESSFUL SUPPORT OF ESTABLISHED Total (circa) £219,950 £139,950 FRANCHISE NETWORK WITH A PROVEN TRADING AND FRANCHISING RECORD. Ongoing Fees Main Store Mini Store THEY HAVE COMPLIED WITH THE POLICIES AND PROCEDURES PUBLISHED BY THE ASSOCIATION AND COMPLY WITH Franchise Fee £307 per week £225 per week THE CODE OF PRACTICE PUBLISHED BY THE ADVERTISING STANDARDS AUTHORITY. Advertising Levy £200 per week £200 per week Training Levy £60 per week £30 per week CASH CONVERTERS ARE A FULL MEMBER OF THE BRITISH FRANCHISE ASSOCIATION, MEETING ALL THE REQUIREMENTS OF THE ACCREDITATION SCHEME. THEY MEET THE ASSOCIATION’S FOUR KEY TESTS – VIABILITY, BRITISH FRANCHISE ASSOCIATION * All the above fees/costs are subject to VAT at current rates from owning a Cash Converters franchise, please contact our UK Support Centre. We will be happy to set up a meeting to discuss matters in greater detail. We encourage you to visit several Cash Converters stores and see the business operation at first hand, or you are welcome to contact the many existing franchisees that are happy to be quoted about the businesses that they own. THE NATIONAL PAWNBROKING ASSOCIATION WAS FOUNDED IN 1892. IT TAKES ACCOUNT OF THE RECENT EXPANSION OF THE PAWNBROKING INDUSTRY AND ENSURES THAT ITS AFFAIRS AND THOSE OF ITS MEMBERS ARE Thank you for your interest. We look forward to hearing from you and meeting you soon. Mark Lemmon MARK LEMMON - CHIEF EXECUTIVE OFFICER 14 MORE EFFICIENTLY REGULATED. IT ALSO PROTECTS THE PUBLIC INTEREST, ESPECIALLY GIVEN THE GENERAL ENVIRONMENT OF SELF-REGULATION IN THE FINANCIAL SERVICES SECTOR. THE ASSOCIATION IS MANAGED BY ITS DEMOCRATICALLY ELECTED COUNCIL OF WHICH CASH CONVERTERS IS A MEMBER. FRANCHISING If you would like to find out more about the personal satisfaction and business success that you can gain NATIONAL PAWNBROKING ASSOCIATION 15 CCUK Brochure 2006 Mk11.qxd 11/4/06 2:47 pm Page 16 OVER 500 STORES WORLDWIDE 110+ STORES IN THE UK JOIN THE GLOBAL LEADER CASH CONVERTERS (UK) LTD CASH CONVERTERS HOUSE, GENTLEMENS FIELD, WESTMILL ROAD, WARE, HERTS. SG12 OEF T 01920-485 696 F 01920-485 695 www.cashconverters.co.uk