franchising
FIVE FACTS ABOUT
FACT ONE... Cash Converters is the largest retailer of pre-
owned goods in the world.
CASH CONVERTERS
FACT TWO... The first store opened in South Western
Australia in 1986 and the network has expanded rapidly to
more than 500 stores in over 20 countries. There are now
over 110 stores throughout the UK and Ireland.
THAT YOU PROBABLY FACT THREE... Cash Converters has spent over £15 million
in the UK developing the brand. A near-continuous high
profile television advertising campaign, full local support
DIDN’T KNOW!
with in-store promotional material and promotional
activities help to maintain its place as leader in its field.
FACT FOUR... Cash Converters has developed a
sophisticated Intranet system for marketing information
and stock offers and has IT solutions which handle
everything from stock control, administration, management
reports and accounts links.
01 franchising
WELCOmE TO THE
ExCITINg WORLD OF
CASH CONVERTERS
Cash Converters pioneered the All have realised the great potential of the
transformation of buying and selling Cash Converters concept, and in fact, many
of pre-owned goods. It has brought the own more than one store. Occasionally
operation out of the back streets and today people in business make investment
it is positioned alongside leading high mistakes, but rarely do they repeat them.
street retailers, with the additional offering At Cash Converters we believe that our
of a wide range of financial services. Our franchisees should do the talking. That
business proposition is second to none. is why, if you are interested in taking a
franchise, we encourage you to meet existing
Visit one of the many hugely successful franchisees as part of your decision making
stores around the UK & Ireland and you’ll process. Joining a franchise is an excellent
find a wide selection of products on sale method to save time and money by using a
at margins often considerably higher than tried and tested formula - choosing the best
when the product was originally sold. franchise is key.
Combine this unique buying and selling
retail concept with a range of popular If you would like to find out more about
financial services and you have a business the exciting and profitable world of Cash
that is less susceptible to fluctuations in Converters, we would be delighted to meet
economic conditions than virtually any other. and discuss this opportunity. Please call our
Some of our franchisees will even tell you Support Centre on (01) 291 3020 or visit our
that our business is recession proof. website at www.cashconverters.ie and take
the first step towards success.
franchising 02
WHAT DOES A CASH
CONVERTERS DO?
BUYINg AND SELLINg Cash Converters believes in the highest
standards of presentation and service.
A gROWINg RANgE OF
The concept of buying and selling goods is All stores are branded with our corporate WIDELY APPEALINg PRODUCTS
as old as civilisation itself. Whatever the colours, systems and signage. Our support
prevailing economic climate or latest political personnel are trained in modern retail A Cash Converters store is divided into two distinct areas, a retail
upheaval it remains a constant feature. techniques.We are continuously evaluating sales area and the buying and financial services department.
and adding new products and services to The retail area maximises the potential of the available floor
At Cash Converters we provide today’s our already extensive range. space while a separate section is created for buying stock and
consumers with a modern, clean, professional processing financial service transactions such as:
and convenient environment in which to sell Whereas many other franchises involve the
used or unwanted goods for cash instantly.We distribution of products purchased from • PaWnBrOKing
also offer a great place to shop for pre-owned the franchisor, Cash Converters trains
bargains, plus a range of financial services its franchisees in the effective use of its • ‘BUYBacKs’ - short term re-purchase options
catering for all sectors of the population, proven business system. We offer a high • chEQUE cashing
including the millions of adults in the UK level of support and a unique mix of widely
who do not have access to bank accounts or appealing services which sets us apart from • sEcUrED anD UnsEcUrED LOans
mainstream credit facilities. other franchisors.
• PaYDaY aDVancEs
a cash cOnVErTErs sTOrE OffErs an EXTrEMELY DiVErsE • WEsTErn UniOn MOnEY TransfEr
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.
03 franchising
CASH CONVERTERS
As world leaders in the buying and selling
of pre-owned goods, Cash Converters is
constantly looking at new ways to expand
mINI STORE
potential markets for franchisees.
One of these new developments is the Cash
Converters mini Store concept, the first of
which opened in the UK in may 2000. As the
name suggests they operate from a smaller
retail unit than a full-sized Cash Converters
store. Whilst you will find the same range
of products and services on offer, the most striking difference is the reduced
amount of retail space and the fact that all the retail merchandise is displayed
behind glass.
Due to the smaller retail area 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 to a minimum, with stores
operating on reduced staffing levels (typically four per unit) and as all retail
stock is displayed behind glass, stock shrinkage is virtually non-existent.
Turnover is likely to be less than a full-size store but conversely the level of
management required to control the business is significantly less demanding.
many existing franchisees have seen the benefits of these small, profitable
and easy to run units operated in conjunction with larger store franchises, but
they are proving equally attractive to single store franchisees. To date, Cash
Converters has opened over 50 mini stores in the UK & 7 in Ireland
franchising 04
PARTNERSHIPS -
gROWINg YOUR
BUSINESS
Cash Converters has established partnerships with
companies in related markets enabling every store
to offer a wider range of services and therefore grow
their income streams. These high profile companies
all offer something different but complementary for
the customer and the store. In many instances we
undertake additional joint advertising and marketing
activity with these companies. These benefits come with
no additional operating costs to the store and you can
earn income by providing facilities or business leads.
Cash Converters is delighted to have built such a strong
and successful relationship with well established and
reputable marketleading companies, and in turn they
enjoy the many benefits of a partnership with the UK’s
leading secondhand retailer.
many companies continue to approach Cash Converters,
and where it is appropriate, we investigate the benefits
to the franchise network.
05 franchising
BECOmINg A 07
FRANCHISE
RESEARCH
FRANCHISES
CASH
CONVERTERS
INTERVIEW
does it
SIgN
AgREEmENT
STORE VISITS
matter what
& APPRAISAL
BUSINESS PLAN
& FINANCIAL
background PLANNINg
FIND PREmISES
i come from?
& FULFIL LEgAL
REQUIREmENTS
STAFF
RECRUITmENT
& SHOPFITTINg
Our existing franchisees come from a diverse range of FRANCHISE
backgrounds, their individual endeavours together with the TRAININg
proven support systems, experience and encouragement offered PROgRAmmE
by Cash Converters has resulted in the establishment of many STORE
hundreds of successful franchises throughout the world. OPENINg
PLAN
Whatever your background, the level of support we provide to our STAFF
franchisees is what sets us apart. You will receive advice and TRAININg
assistance in developing your own personal business plan. Once STOCKINg &
your territory is identified we will provide help with locating a mERCHANDISINg
suitable site, negotiating the lease, survey costs, shop drawings STORE
and design, construction estimates, computer hardware, OPENINg
stationery, signage and initial stock. Cash Converters provides a
detailed critical path right up to and beyond your store opening.
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 the Cash Converters brand. Nothing
is overlooked or left to chance.
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.ThE rOUTE TO YOUr sTOrE
franchising 06
INFORmATION CCNET IS OUR MAIN COMMUNICATION TOOL - THIS
KEEPS YOU INFORMED OF NEW PRODUCTS AND
TECHNOLOgY MARKETING INITIATIVES AS WELL AS CONTAINING
ORDERING INFORMATION ON EVERYTHING THAT
AT CASH CONVERTERS WE INVEST
HEAVILY IN INFORmATION TECHNOLOgY. YOU’LL NEED TO KEEP THE BUSINESS RUNNING -
OUR DEDICATED IN-STORE COmPUTER LIKE A FRANCHISEE OPERATIONS MANUAL
SYSTEm CCWIN mANAgES THE DAILY
FUNCTIONS, IT FEATURES:
• individual levels of access and control for every member
of staff - definable by the administrator
• capture of customer details with photographic facility
• iD system incorporating the current cc points system
• Unique barcode allocation on all products for easy tracking
throughout the business
• Printed document generation for Buys, Buybacks, Loan
Extensions, Pawnbroking, Laybys and credit notes/gift voucher
• Easy management and control of business cashflow with
various cash locations
• fully featured stock control system, plus a quick and easy
stock taking system with hand-held scanners
• stock transfer facility between stores
We also provide a full reporting and analysis facility of all key
ratios within the business, by day/week/month, etc, including the
performance of individual staff. Remote access is available for
franchisees (from any broadband-enabled location) and remote
dial-in access is installed for swift online support.
BaySoft is a dedicated online cheque cashing service which allows
Cash Converters to offer customers a third party cheque cashing
facility. It enables cheque cashing through operations and outlets
other than banks or building societies. The user-friendly system
has a step-by-step guide to the procedures, regulations and
requirements surrounding all aspects of cheque cashing. It offers
instant information on current cheques and customers within the
Cash Converters network.
Cash Converters has a worldwide Intranet that enables almost
instantaneous communication with the entire UK & store network.
Providing the latest information via a weekly newsletter, it also
offers graded stock deals, training information and updates,
plus can be used for exchanging information and advice between
franchisees. It enables good communication between the UK &
Ireland store network and offers a wealth of information.
07 franchising
BRAND
INVESTmENT
£15 million has been spent in the last 15 years developing the Cash
Converters brand in the UK & Ireland. 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 job to make sure 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 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 message that goes out to the public and get
theCash 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.
Sky Sports 1, 2, 3 & Sky Sports News
Discovery Civilisation
Discovery Science
Discovery Wings
franchising 08
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 EncOUragEMEnT TO WOULD-BE
franchisEEs. nOT ThaT ThEY nEED iT Of cOUrsE,
giVEn ThE DEgrEE Of PrOfEssiOnaL hELP rEaDiLY
aVaiLaBLE frOM hEaD OfficE.
At each stage of a new franchise’s development, a good team of people working together who
head office and fellow franchisees are on hand to understand the Cash Converters concept,” says
impart advice and trade knowledge from where it gary, “and don’t try to buy everything very cheaply.
really counts - the shop floor. Sometimes you think ‘I’ve got a fantastic deal,
“The company’s moving forward,” gary enthuses. buying something for a tenner that’s going to retail
“The training’s fantastic and the IT support is great. for £100,’ but that guy will never come back to you.
If we have a problem, we can put a question out on “By giving a fair price customers will come
the Intranet and get feedback from other franchisees back and sell you something else,” gary advises.
who have been in the same situation. “Without people selling us things, or loaning money
“We all get together on a quarterly basis and from us, the business can’t carry on.” Cheque
swap ideas,” he adds. “There’s a good network cashing has proved popular for gary’s customers,
in place for new franchisees coming on board.” while the Western Union facility also draws people
For gary, the potential for growing business was to the stores. “We’re not just all about making a
obvious from the outset. “With Cash Converters, fast buck; we have to think about why people come
your money is guaranteed; there is no gamble to us in the first place.”
involved,” he notes, adding that he believes the As for future ambitions, gary Lewy wants
Cash Converters concept to be ‘recession proof’. to open more of the smaller Cash Converters
gary’s own route into Cash Converters was stores, because they can be run with fewer staff.
initially about keeping it in the family. “I actually “Ultimately the profit margin can be just as good
found it for my Dad to do,” he recalls. “I saw an ad even if you don’t retail as much as the larger main
in the Daily Express under the franchise section and stores,” he marvels.
phoned up. He went to visit a store, got a partner But his biggest advice for would-be franchisees
on board and they tempted me into coming to is to listen closely to other franchise owners, who
work for them. Pretty soon I ended up begging and are only too happy to impart the positives and
borrowing to buy out my Dad’s partner.” negatives. “There’s proper training at each stage
When it comes to setting up a store, location is and we’ve realised that if we supply our staff with
obviously crucial “but equally important is having ongoing help then we get a lot more back.”
09 franchising
HAPPY TO
BE QUOTED!
It is the experience of existing franchisees that really
counts. So included below are real quotes from
franchisees which demonstrate how they feel:
“YOU arE hELPED BY a sTrOng PrOfEssiOnaL TEaM
BOTh in ThE sUPPOrT cEnTrE anD OUT in ThE fiELD”
- Roy and Ann Kelly, Warrington
“haVing sPEnT 15 YEars in cOrPOraTE rETaiL iT is
VErY rEfrEshing TO finD a rETaiL BUsinEss WiTh
sUch DiVErsE PrOfiT cEnTrEs”
- David Thomson, Newcastle & Byker
“an EXcELLEnT rETUrn On inVEsTMEnT, WELL in
EXcEss Of anY EXPEcTaTiOns i MaY haVE haD”
- graham Wilkins, Chatham
“inVEsTOrs WErE PaiD BacK WiTh inTErEsT WiThin
TWO YEars. i aM On schEDULE TO MaKE a hEaLThY
PrOfiT This YEar”
- Bill Beagrie, Aberdeen
“ThE rETUrn On inVEsTMEnT is OUTsTanDing! i
aLrEaDY haVE fiVE sUccEssfUL sTOrEs anD nOW i aM
LOOKing fOr MY siXTh”
- gary Lewy, Barking, Leyton, Stratford, Walthamstow & Dagenham
“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”
- Len Smith, Wallasey
franchising 10
FINANCIAL
INFORmATION
OPENINg COSTS
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
below. Clearly these figures will vary depending upon size, location and the amount of shop
fitting works required. We work with a number of leading banks, and can, subject to status,
help you secure part funding of your investment if required.
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
royalties are based on a percentage of your sales (your fees increase in line with increases
in sales) at Cash Converters our royalties 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.
CASH CONVERTERS mINI STORE
Cash Converters mini Stores are smaller versions of full Cash Converters outlets. They operate
from a small unit, have less overheads and running costs, and offer a lower entry level into
the Cash Converters network. We have successfully opened 50 of these stores to date and
plan to open a further 20 over the next two years, 15 of which will be in London alone.
Shown below are the fee structures for a full store and the new Cash Converters mini Store.
OpENiNg COsTs MiNi sTORE
iNiTiAl FRANCHisE e30,000
pRE-OpENiNg COsTs e10,000
iT COsTs e15,000
sHOp FiTTiNg e60,000
OpENiNg sTOCk e30,000
WORkiNg CApiTAl e50,000
TOTAl (CiRCA) e195,950
ONgOiNg FEEs MiNi sTORE
FRANCHisE FEE e450 pER WEEk
AdvERTisiNg lEvy e300 pER WEEk
iT sUppORT e60 pER WEEk
TRAiNiNg lEvy e50 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 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
about the businesses that they own. Thank you for your interest. We look forward to hearing
from you and meeting you soon.
Shaun galvin - CHIEF ExECUTIVE OFFICER
11 franchising
cash cOnVErTErs is 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, franchisaBiLiTY, EThics
anD aPPrOPriaTE DiscLOsUrE PLUs
sUccEssfUL sUPPOrT Of EsTaBLishED
franchisE nETWOrK, WiTh a PrOVEn
TraDing anD franchising rEcOrD.
iT has cOMPLiED WiTh ThE POLiciEs
anD PrOcEDUrEs PUBLishED BY ThE
assOciaTiOn anD cOMPLiED WiTh ThE
cODE Of PracTicE PUBLishED BY ThE
aDVErTising sTanDarDs aUThOriTY.
CASH CONVERTERS FULL-SIZED STORE
main store offering all financial services and with a - BRiTisH FRANCHisE AssOCiATiON
retail space selling goods.
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 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
CASH CONVERTERS mINI STORE Which cash cOnVErTErs is a MEMBEr.
Providing all the financial services such as
chequecashing, pawnbroking, payday advances, etc. - NATiONAl pAWNBROkiNg AssOCiATiON
but with reduced retail space. Bought stock can be sold
or transferred to other stores.
franchising 12
OVER 500 STORES WORLDWIDE
110+ STORES IN THE UK & IRELAND
JOiN THE glOBAl lEAdER
CASH CONVERVERTERS IRELAND
Moore Street Mall, Parnell Street, Dublin 1
Tel Ireland 087 223 3680. NI 07989 046567
www.CashConvertersIreland.ie