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CONVERT YOUR THINKING
200+ UK STORES.
LARGEST RETAILER
OF PRE-OWNED
GOODS IN THE WORLD.
01
WELCOME
Cash Converters has pioneered the transformation of buying and selling
of pre-owned goods. It has brought the operation out of the back streets
and today it is positioned alongside leading high street retailers.
With the additional offering of a wide range of financial services,
our business proposition is second to none.
Visit one of the many hugely successful stores around the UK and you’ll find a wide
selection of products on sale at margins often considerably higher than when the
product was originally sold. Combine this unique buying and selling retail concept
with a range of popular financial services and you have a business that is less
susceptible to fluctuations in economic conditions than virtually any other.
Some of our franchisees will even tell you that our business is recession proof.
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“
The store has been a
great success, we are
part of the community
and this local, bespoke
approach has really
made a difference to our
bottom line
Donna MacKenzie
Worcester
“
Cash Converters
represents an investment
opportunity which is
second to none. The fact
that the business
continues to thrive in the
current economic climate
is testament to that
Gary Lewy
Multiple Stores
“
A hands-on approach to
the business has meant
great success for me.
I have four stores open
and aim to carry on
growing until I have 10
Paul Saunders
Multiple Stores
01
All our franchisees have realised the great
potential of the Cash Converters concept,
and in fact, the majority own more than
one store; occasionally people in business
make investment mistakes, but rarely do
they repeat them. This has helped our
continued expansion, and we now have
over 200 stores trading in the UK.
At Cash Converters we believe that our
franchisees should do the talking. That is
why, if you are interested in taking a
franchise, we will arrange for you to meet
some existing franchisees as part of your
decision making process.
Joining a franchise is an excellent
method of saving time and money, by
using a tried and tested formula, choosing
the best franchise is key.
If you would like to find out more about
joining the global leader in this business
category, the exciting and profitable world of
Cash Converters, we would be delighted to
meet and discuss this opportunity.
Please call our Support Centre on
01920 485 696
or email us at
[email protected]
or visit our website at
www.cashconverters.co.uk
and take the first step towards success.
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CONVERT YOUR THINKING
BUYING AND SELLING.
PROFESSIONAL WELL
TRAINED STAFF.
CONSTANTLY EVOLVING
PRODUCT RANGE.
02
PRODUCTS
At Cash Converters we provide today’s consumers with a modern,
clean, professional and convenient environment in which to sell
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
millions of adults in the UK who do not have access to bank
accounts or mainstream credit facilities.
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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 further enhances the stability of business to
changing economic conditions.
A growing range of widely appealing products
A Cash Converters store is divided into three distinct areas: a retail sales area,
buying and financial services departments. The retail area maximises the
potential of the available floor space while separate sections are created for
buying stock and a private area for processing financial service transactions.
•
•
•
•
•
•
•
•
RETAIL
LAY-BYs
BUYS
BUY BACKS
PAWNBROKING
CASH ADVANCES
PERSONAL LOANS
CHEQUE CASHING
Cash Converters believes in the highest
standards of presentation and service.
All stores are branded with our corporate
colours, systems and signage.
Our support personnel are trained in
modern retail techniques. We are
continuously evaluating and adding new
products and services to our already
extensive range.
Whereas many other franchises involve
the distribution of products purchased
02
from the franchisor, Cash Converters trains
its franchisees in the effective use of its
proven business system. We offer a high
level of support and a unique mix of widely
appealing services which sets us apart
from other franchisors.
Cash Converters (UK) Ltd also operates
a large network of company owned stores,
and employs over 350 people. This is why
we are confident in our ability to support
the franchise group as the dedicated
franchise team are fully experienced in all
aspects of the franchise operation and
benefit from the experience of the
company owned stores.
When it comes to sharing information
and best practice the network of mainly
franchised stores and the company owned
stores ensures everybody has access to
information, training and support to
maximise their business goals and
profitability.
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CONVERT YOUR THINKING
COMPLETE SUPPORT.
TRAINING &
DEVELOPMENT OF A
PROVEN WINNING
FORMULA .
03
Our existing franchisees come from
a diverse range of backgrounds.
Their individual endeavours,
together with the proven support
systems, experience and
encouragement offered by Cash
Converters, has resulted in the
establishment of many hundreds of
successful franchises throughout
the world.
GETTING STARTED
Our existing franchisees come from a diverse range of
backgrounds and Cash Converters UK operate a growing group
of corporate store. Our hands-on experience ensures we are able
to service our franchisees to the highest standards. These
proven support systems have resulted in helping establish many
successful franchises throughout the UK.
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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
After the initial contact you make with Cash
Converters you are allocated a Business
Development Manager (BDM), who will
guide and help you through the many
stages up to and after you have opened
your store.
The BDM’s are very experienced in store
openings (over 25 successful openings in
the past 12 months alone) and the running
of successful and profitable businesses.
They help guide
you through your new store opening using
a Critical Path that ensures that nothing is
missed before opening, including:
Business Plans
Signing off property, location and size
l Checking store plans/layouts
l Signage/Branding
l Recruitment advice (numbers, quality,
and if required help with interviewing
managers, etc.)
l Setting up Franchisee Training
Programme (with your dedicated Training
Manager
l Pre-opening requirements including
stationery
l Stock procurement
l Legal requirements
l IT systems
l
l
Your BDM will be there all the way,
supporting you and your team in the run up
to store opening, including support on your
opening day.
When you are trading, your BDM will
visit your store on a regular basis and to
help maintain the level of skills and high
standards. As the business grows in the
future your BDM will also check that you
are achieving your Business Plan and
taking the actions required to help grow
your business.
Training
Franchisees will have an intensive ten week
induction training programme which will
cover the fundamentals of successfully
running a Cash Converters store, along
with useful advice on finding and managing
a great team.
Your Regional Training Manager will
deliver a comprehensive training
programme through a range of Training
Workshops, plus support you to identify
training needs within your store and follow
up on training received.
THE ROUTE TO
OPENING YOUR
STORE
MEET CASH CONVERTERS
MEET AND TALK TO
WORKING FRANCHISEES
SIGN AGREEMENT
BUSINESS PLAN &
FINANCIAL PLANNING
FIND PREMISES & FULFIL
LEGAL REQUIREMENTS
FRANCHISE TRAINING
PROGRAMME
STAFF RECRUITMENT
& SHOP FITTING
STORE OPENING PLAN
& STAFF TRAINING
STOCK & MERCHANDISE
Cash Converters franchisees have the opportunity to get together
several times every year with our regular Regional Franchise Meetings
and at our annual National Conference.
The goal is to make this event both informative and relaxing, so
everyone has the chance to network with colleagues old and new,
plus meet with associated companies. Judging by our franchisee
responses, these goals are being comprehensively achieved!
03
STORE
OPENING
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CONVERT YOUR THINKING
BRAND INVESTMENT.
IN-STORE MARKETING.
TELEVISION & RADIO.
04
THE BRAND
£16 million has been spent in the last 16 years developing the
Cash Converters brand in the UK. This has helped establish and
retain our place as the leader in our field.
Our franchisees place value on the brand they have bought into
and it is our mission to make sure the brand value increases.
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Branding design and development, plus in-store material and television advertising,
are constantly reviewed and updated. We are continuing our high profile advertising
campaign this year on Sky and terrestrial channels.
Market research findings and close
monitoring of business performance are
used to fine-tune the branding that is
seen by 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 Cash
Converters stores.
cashconverters
are proud to support
Cash Converters sponsored the inaugural World Cup of Darts,
televised on Sky TV during December 2010.
Cash Converters are the
main club sponsor for
both Hull City and
Motherwell football
clubs. The deals cover
the 2011/2012 and
2012/2013 seasons
with an option on the
2013/2014 season
04
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CONVERT YOUR THINKING
DOUBLE FIGURE
PERCENTAGE INCREASE
IN LAST SEVEN YEARS
05
CASE STUDY
Cash Converters, the UK’s number one high street retailer of
pre-owned goods, financial services and the largest of its kind in the
world, recently celebrated its 200th UK store opening after
experiencing double digit growth for the last eight years.
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“
A Cash Converters
franchisee needs to be
able to demonstrate
commitment, passion
and a determination to
succeed
Gordon Cox
Multiple Stores
One of the Cash Converters
franchisees leading the charge is
Gordon Cox, with experience in
opening 17 stores across Yorkshire
and Lancashire. Gordon and his
family are continuing to experience
strong growth.
With a background in retail, working for
companies such as Allied Carpets, MFI
and Do-It-All, Gordon’s 25 years of
experience have been invaluable to the
success of his Cash Converters stores.
However, despite his retail experience
Gordon knew that a franchise business
would be a ‘different story’, he knew that
hard work was needed in order to grow his
business from one store to almost 20.
Gordon says: “A Cash Converters
franchisee needs to be able to
demonstrate commitment, passion and a
determination to succeed. With a franchise
comes a well known name that has already
built its recognition and respect,
consequently you’re not spending 20 years
building a name for yourself, however you
05
do need to invest time in understanding
your target audiences and building
confidence in your offer.”
Gordon continued: “Cash Converters is
well placed to do well in good and bad
times, the secondhand market isn’t
recession proof, no business is, but it’s
nowhere near as difficult as the new goods
market. We also have our other financial
products to support us; pawnbroking, buy
backs, cash advance and personal loans.
Cash Converters will offer you as much
or as little support as you want. The help
we have received from our business
development manager, Nathan Sermon,
has been invaluable to our growth.
Two of my sons are now in the
business, they are involved in the launch of
our new stores as well as the day to day
management of the network. Our stores
have proven very successful; with our
meticulously planned and rehearsed
approach to the launch of a new store we
are confident that we will continue to
experience growth in coming years. The
great thing is that I still love the business
and therefore truly enjoy continuing with
my team.”
One of the most comprehensive training
programs in the industry is available to all
Cash Converters franchisees. Investment
levels start from £125,000 plus financing
and franchisees receive ongoing support
and advice, from choosing the perfect
location to recruiting staff, marketing
support and purchasing initial stock.
David Patrick, Chief Executive at Cash
Converters concludes: “This wide range of
services on offer in-store including our
range of extremely popular personal
finance products reinforces Cash
Converters position as a leading high street
retailer which responds to the needs of its
customers. This is certainly a great time to
become part of one of the fastest growing
retail businesses in the world.”
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CONVERT YOUR THINKING
WHY CHOOSE A
CASHCONVERTERS
FRANCHISE?
06
FAQ’S
Since opening the first store in Western Australia in 1984 Cash
Converters has grown rapidly to be the UK’s number one retailer of
pre-owned goods and a financial services provider.
Opening its first UK store in 1991, it quickly becoming the brand leader
within the sector and the UK’s favourite buy, sell and financial services
store. As the world’s largest buyer and seller of secondhand products,
with a network of over 600 stores in 21 countries we have a brand
recognised by millions worldwide.
In the UK we have a growing number of stores, now over 200, with a further 50
planned over the next 12 months. With this presence on the UK high street, as the
brand of choice, Cash Converters is the franchise to join.
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Frequently
Asked
Questions
Q. How much liquid cash will I need
to have readily available?
A. From a minimum of £125,000
Q. How can I finance the rest of the
money needed?
A. We work with a number of leading
banks, and can, subject to status, help
you secure part funding of your
investment if required.
Q. What else do I have to pay for
after I start my business?
A. A monthly franchise fee plus monthly
advertising, training and IT fees.
However, with fees only adjusted by
RPI. The better you do, the more you
earn!
Q. Is there a charge for Business
Development Manager (BDM)
store visits?
A. No, this is included in your franchisee
fee.
Q. Can I get information/advice from
other franchisees?
A. Yes and we encourage it. We hold three
meetings a year for CCUK to give
updates to franchisees and for
franchisees to share information with
other franchisees. We also hold a two
day conference every year.
Q. Where is the best place for me to
open a store?
A. Ideally within commuting distance of
your home. We can advise on locations
that we have researched and know
would be good to open stores in.
06
Q. Who would be a suitable
franchisee?
A. Ideally someone with a retail or financial
services background. However we have
many successful franchisees from many
and varied backgrounds. If you are not
from a retail background we would
recommend that you employ an
experienced store manager to give
support on the retail side of the
business.
Q. What support would I receive
when opening a second store?
A. Your BDM will support you all the way,
supporting yourself and your team in
the run up to opening you new store,
including support on your opening day.
When you are trading your BDM will
visit your store on a regular basis to
help maintain the level of skills and high
standards as both your businesses
grow.
Q. Is Cash Converters only a retailer
of secondhand goods?
A. No, although the business operates
primarily in sales, it also covers many
other services including: buy backs,
pawnbroking, cheque cashing, cash
advance, Western Union money
transfer and personal loans and also
acts as an agent for other external
financial services.
Q. Does Cash Converters have an
exit strategy?
A. Cash Converters do purchase
businesses from franchisees leaving the
business; there is an approved process
which enable franchisees to exit the
franchise.
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CONVERT YOUR THINKING
OPENING COSTS.
ONGOING FEES.
NEXT STEPS.
07
FINANCIALS
At Cash Converters we are committed to ensuring your business will
be a success. One of the key factors in this is establishing the
required levels of funding you will need to successfully open and
trade your own Cash Converters store.
The approximate investment is outlined on this sheet. These figures will vary
depending upon size, location and the amount of shopfitting work required.
We work with a number of leading banks, third party professionals and can,
subject to status, help you secure part funding of your investment if required.
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Fixed franchise fees
The company has been equally innovative
in developing a franchise system designed
to improve the traditional
franchisee/franchisor relationship.
While many other franchise fees are based
on a percentage of your turnover (your
fees increase in line with increases in sales)
at Cash Converters our fees are fixed for
the duration of your contract.
Given our regular year on year growth,
that means our franchisees are effectively
paying less than they would if charged a
percentage of turnover. There are many
other advantages but our philosophy is
simple: the more successful your business
is, the more franchisees will join our
business.
OPENING COSTS
Initial Franchise Fee
£29,995
Pre-Opening Costs*
£30,000
Shop Fitting**
£65,000
IT Costs
£10,000
Opening Stock
£45,000
Working Capital
£70,000
Total (circa)
Personal Investment from
£250,000
£125,000
* Including: Legal Costs, Staff Recruitment, Rent Deposit, Staff Training, etc
** Site Acquisition, Draft Plan, Planning Applications, Fixtures, Signage,
Security Shutters etc.
ONGOING FEES
Franchise Fee
£362 per week
Advertising Levy
£204 per week
Training Levy
£63 per week
* All the above fees/costs are subject to VAT at current rates
If you would like to find out more about the
personal satisfaction and business success that
you can gain from owning a Cash Converters
franchise:
Please call our Support Centre on
01920 485 696
or email us at
[email protected]
or visit our website at
www.cashconverters.co.uk
and take the first step towards success.
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
about the businesses they own.
Thank you for your interest.
We look forward to hearing from you
and meeting you soon.
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