We all like a bargain, and, every year, consumers worldwide make their hard-earned cash go further by buying and selling pre-loved items.
The Australian-born company, Cash Converters, landed on British soil in 1991 and specialises in the trade of pre-loved products, including electronics, phones, jewellery and much much more. This incredibly successful company has 1300 staff across 222 stores in the UK, 161 of which are franchise businesses.
Can I buy a Cash Converters franchise?
YES, you can buy a Cash Converters franchise in the UK! Although the start-up costs for this franchise can be fairly steep, you’ll get this back in spades. Within two years, many Cash Converters franchisees enjoy a revenue of £204,000.
Becoming a Cash Converter franchisee
Cash Converters is incredibly proactive when it comes to building its empire through franchising, and it offers the following extremely attractive benefits:
- A unique turnkey package designed to get you up and running as quickly as possible
- Comprehensive startup support
- Support with the selection of your site and negotiation of your lease
- Support with the design and layout of your store
- Training
- Support with recruitment
- Help with marketing and promotion of your store
- Online support tools
- A comprehensive personal support package including regular visits from your Business Development Manager, advanced training and access to the company’s customer service and compliance team
- A year conference
Sounds pretty good, right? Absolutely, but before you go sailing over to the Cash Converters site, there are a few things you need to know:
- To become a Cash Converters franchisee, you’ll need to be able to get your hands on £30,000 in initial franchise fees to be paid to the franchisor on the signing of your contract.
- You’ll need to have liquid assets of £250,000, which is required to cover the securing of your premises, staff salaries and more.
- You’ll be paying a percentage of your takings to the franchisor every month for ongoing training, insurance, support and resources.
- The Cash Converters franchise contract runs for ten years, and you will need to pay a further fee should you decide to renew your contract at the end of this term.
How do I get started with a Cash Converters franchise?
If you feel that you’ve got what it takes to become a Cash Converters franchisee, then you’re ready to start the 10 step process.
This begins with heading to the Cash Converters website to fill in an application form. Next, you’ll be required to put together a business plan and provide evidence that you have the necessary cash or access to funding. If successful, you’ll embark on a 10-week owner/operator training program designed to equip you with all the tools you need to start and run a successful Cash Converters business.
The franchise model explained
You’ve no doubt come across the word ‘franchise’ but may not know exactly what it entails. This is essentially a way in which anybody can become a business owner, even if they don’t have a huge amount of capital, years of experience or a fabulous and unique business idea.
Franchising gives you the chance to grab yourself a slice of an established and successful business for a relatively modest financial investment.
Why buy a franchise?
This model helps you bypass the considerable risk often involved when you start up your own independent business. Additionally, you benefit from the experience and low-cost resources that a large company can offer.
This model involves an individual (the franchisee) paying an initial investment fee to a company (the franchisor) which gives them access to all the training, rights and equipment they need to get up and running with their business.
Once the business is in operation, the franchisee will pay a percentage of their monthly takings or profits to the franchisor in exchange for ongoing support and rights to the branding.
While the franchisee will often be responsible for some marketing and promotion efforts, they will also have the advantage of the franchisor’s national advertising efforts, including television and radio.
Conclusion
Across the globe, the pre-owned product market is booming and, getting on board with a Cash Converters franchise gives you the chance to grab a chunk of this lucrative business for yourself.
When embarking on any business or franchise opportunity, always hire a solicitor to take a look at the contract for you to make sure that you know exactly what you’re getting into before the contracts are signed and sealed.
