CeX - or Complete Entertainment eXchange - was founded in 1992 and is a leading second-hand marketplace for digital entertainment products. CeX allows its users to sell, buy or exchange anything second-hand from video games, mobile phones, and consoles, to headphones, DVDs and SD cards.
CeX was founded by Robert Dunani, Hugh Man, Oliver Ball, Oli Smith and Paul Farrington who saw an opportunity in the market for used electronics. They decided to start CeX, the home of used but high-quality gadgets and electronics and after proven success, their first store outside of London opened in Birmingham in 1997. Their first franchise opened in 2004. Each gadget is carefully tested before made available in CeX stores with a 24-month warranty, in order to ensure the highest level of customer satisfaction.
CeX has become a specialist in entertainment and technology and developed unique software and computer systems that simplify the process of buying and selling. CeX owns the website webuy.com, which drives additional revenue to the company and supports stores with live pricing, and stock levels.
Since the first store just off Tottenham Court Road in London, CeX has expanded to Spain, Ireland, India and Australia, and now have over 600 stores worldwide, 383 of which are in the UK. In the UK, 265 of these stores are franchises.
How does the CeX franchise model work?
CeX started franchising in 2004 after their business model based on second-hand technology, gadgets, and digital entertainment products quickly proved successful and profitable.
As a CeX franchisee, you will own and manage your own CeX store. Your role will encompass a number of activities, including running the store, recruiting, managing and motivating your team of staff, building and maintaining relationships with customers and growing the business overall.
CeX encourages franchisees to develop their business and if they want to, expand to more locations and own more than one store.
When needed, CeX Support Centre experts are available to help at every step of the way and are just a phone call away if you need assistance with launching your new CeX franchise, or expanding your existing one.
How much does a CeX franchise cost?
A CeX franchise requires an investment between £150,000 and £250,000, with £40,000 at least of your own capital. Most of this investment will go towards stock and shop fitting. You can either open a small store or a bigger one depending on the site you have at your disposal and your budget.
The CeX franchise package includes training and ongoing support, store identification, design and outfit, and advice from experts throughout your journey. The CeX support team is very accessible and supportive, and are willing to help at any point if you are unsure about your next steps.
A CeX franchise offers exceptional returns. With a CeX franchise, you can expect a return on your investment after two years, and an annual turnover of over £1,000,000.
Finding funding for a CeX franchise
CeX is a member of the British Franchise Association and is accredited by most major banks, which will make it easier for you to find funding for your CeX franchise. With a competitive business model and large potential revenues, CeX presents a great opportunity to get started with a franchise in a market with very little competition.
CeX will also provide support in your search for funding, including help with your business plan, making it dynamic, relevant and attractive for potential financial supporters, as they want to ensure funding partners understand the CeX business model and how it works.
What new locations or territories are available to open up a new CeX franchise?
Finding a suitable new location for you CeX store and securing high street locations can be challenging, however, the CeX support team will be there to assist you in your search and advise you on the best option for you. The quicker you get in touch with CeX to get started, the quicker you can sort and secure your new location.
Finding a new building or unit for your CeX franchise
The average floor space needed for a CeX franchise is 1000 square feet. CeX will provide support throughout the process. They will help you manage the project, and will also provide support when negotiating a lease for the new business property, in order to make sure you get the best possible deal.
Do you need any previous retail experience to become a CeX franchisee?
Not necessarily, however, retail management experience is preferable. CeX provides all new franchisees with a comprehensive 12-week minimum intensive training programme aimed to prepare you to run your first franchise.
The training programme is store-based, focusing on practical in-store experience, store management, and supervision, retail and sales principles, as well as some general business and franchise competencies. Franchisees will spend time in both corporate and commercial CeX stores, in order to gain valuable experience and confidence in
sales, customer service, and store management.
During your journey, you will also be assigned a Regional Franchise manager, who can assist you with every step of the way.
Previous franchisees do recommend a passion for technology and customer satisfaction, as well as strong business acumen.
Why choose a CeX franchise over other electronic retail opportunities?
Opening a CeX franchise can be a great opportunity to get involved in a recession-proof market with limited competition. Technology is a growing market and with more and more electronic gadgets being released year after year, an increasing number of people are looking for cheaper alternative options, like second-hand goods. The digital and entertainment industry in the UK is estimated to reach £21 billion by 2020.
CeX is so confident in its business model that it offers a buy-back guarantee. Subject to conditions, CeX will take over your store management and running costs, and refund you stock, shop build and fit costs, if you are not fully satisfied with the way your new store is running.
How can I apply to find out more about owning my own CeX business?
To apply for a CeX franchise, simply fill out the form on this page to find out more information and hear from a member of the CeX franchise team.
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