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Cash Converters

The biggest second-hand retailer in the world

Cash Converters In Brief

  • Description

    The biggest second-hand retailer in the world

  • Business Type

    Retail

  • Investment Level

    £ 280,000

  • BFA Member

    Yes

    What does it mean to be an official ? BFA Member entail?

About Cash Converters

Cash Converters began as a small second-hand retail outlet in Perth, Australia. Since then, the brand has grown a massive global presence stretching from South Africa to the UK.

Cash Converters franchises are in 21 countries and there are over 700 individual stores worldwide. In the UK, Cash Converters have become a well-known household brand. Over two-thirds of the stores in the UK are franchises while the remaining third is owned by the company directly. In total, the businesses generate around 1,800 jobs in
the UK and serve almost 500,000 customers monthly.

A Cash Converters franchise fulfills two key roles: the business’s physical store buys unwanted used items from individuals or small companies; Cash Converters resells the items in-store or via official online channels.

This is referred to as the “traditional pawnbroking and buybacks” side of the business. On the other hand, Cash Converters hosts a thriving personal financial centre that offers clients cash advances and personal loans based on their assets.

The Cash Converters model owes its success to the natural lift in margins when selling used or unwanted items vs the margins on new items. Even in a recession, the business is projected to do well as consumers are both concerned about immediate cash flow and eager to save where they can.

The secondhand market has grown from strength to strength following re-use and recycle trends worldwide. In the UK alone, the value of sales rose 7.6 per cent from 2016 to 2017.

Cash Converters is a well-tested franchise system that has worked successfully hundreds of times in the UK. Keeping with the times, the business model is shifting to accommodate the rise of online buying and the demands of savvy UK consumers. By adapting quickly and efficiently, Cash Converters has kept its business thriving since the doors first opened in 1984.

How much does a Cash Converters franchise cost in the UK?

You will need a total of £280,000 to open a brand new franchise. The cost of a Cash Converters franchise in the UK is mostly attributed to premises-related expenses. Opening a new store, including liquid funds to pay for wages, rental, and office expenses is approximately £250,000. On top of that, you will need to pay a once-off fee of £30,000 to for the franchise license fee. This includes a comprehensive training program, start-up guidance, and ongoing support. The franchise agreement is on a 10-year term and is renewable for a fee.

You will need to pay a series of fees either monthly or yearly. As listed by the official website, this includes: a service fee, a system license fee, marketing/advertising support fee, a training levy, insurance, and your personal MISC business costs.

 

How does a Cash Converters franchise in the UK work?

A Cash Converters franchise is customer-focused and hands-on. You will be an owner-operator and every single day will pose new challenges for you to work through. Previous business experience and a high energy level will help your new store grow from strength to strength. Your role will include hiring new staff, working on marketing campaigns, conversing with customers, reviewing finances, and managing your staff.

There are two distinct sides to a Cash Converters franchise: the buying and selling of used goods (retail), and financial services (cash advance and personal loans). The multi-income opportunities of Cash Converters mean owners don’t need to rely on one revenue stream alone and can instead work to build a robust multi-faceted business.

 

How to buy a Cash Converters franchise

Cash Converters has invested significant resources into developing a foolproof startup process that’s easy to follow. Cash Converters’ signature 10-step process can be completed with minimal hassle or guesswork. After you fill in the initial application form, you will discuss details with Cash Converter UK head office before meeting existing franchisees and the franchise sales team.

After completing your business plan and securing funding, you will work with the support team to find suitable premises and agree on a fit out plan. While your shop’s interior is being constructed, a 10-week owner-operator training program gets you up to speed and you can start to recruit your shop manager(s) and staff. All that’s left is to stock your store, implement a marketing plan and open your doors for business.

 

Finding a Cash Converters franchise resale

If you would like to buy an existing Cash Converters franchise for sale, you will need to initiate contact with the franchise sales team. You can contact them via email or on the official UK website.

 

Cash Converters franchise opportunities for further growth

Most Cash Converters franchisors in the UK have found the business model so successful, they own and manage more than one store. One-third of all franchisees run multiple stores. So many, in fact, that the average number of stores per person is 3.8 units. The long-term opportunity for growth and expansion is
encouraged by Cash Converters and over 72 per cent of its franchisee have been with the franchise for longer than seven years.

 

Why choose a Cash Converters franchise over other retail franchise options?

Cash Converters has spent £25m to grow its brand in the UK. Cash Converters is the market leader in commercial used-goods retail. The business model was built with the intention of maximum stability - people always need emergency cash and people always have unwanted items to sell. This has made the Cash Converters model particularly reliable in the ever-changing landscape of modern business.

What training and support do Cash Converters franchisees receive?

As part of your franchise license fee, you will receive a comprehensive 10-week training program. The training includes everything you need to know to get started. It covers basic systems like CCPOS, Webshop and Office 365 as well as marketing support, head office training, and opening advice.

The support you receive is massive. After your territory is discussed, head office will help you choose a store location, give you marketing materials and signage for your launch, assist you with launch project management, verse you in quality assurance best practice, and give you business training and development support.

Ongoing support includes national branding and marketing campaigns, yearly conferences, regular training visits for you and your staff, and a customer service team.

 

How can I invest in a Cash Converters franchise?

To apply for a Cash Converters franchise, simply register you interest by clicking the enquiry button on this page. You’ll be directed to an application form that will start your new business journey.

Interested in this franchise opportunity?

For additional information on Cash Converters, simply send us an !

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