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FRANCHISING
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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.
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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.
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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.
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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.
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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
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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.
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FRANCHISING
In such a dynamic and changing business new courses are always
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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.
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Discovery Science
Discovery Wings
FRANCHISING
year will be on all Sky channels
History
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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.”
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“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”
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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
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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
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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