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Why does Cash Converters appeal to people with merchandise to sell?
In our society time really is money - and no one has either to spare. Cash Converters is an easy process that generates easy money. Placing ads is costly, waiting for the phone to ring is annoying and having strangers in your home to view the item can be dangerous. Selling your quality goods to Cash Converters is quick, simple and safe.
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Why does Cash Converters appeal to people looking to buy merchandise?
Aside from the varied and ever changing stock, buyers like the fact that the merchandise they find at Cash Converters is clean, interesting, good value and in proper working condition. In addition, the professional retail staff is always helpful and the 30 day warranty offers the kind of security consumers demand.
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Do I need retail experience to become a Cash Converters franchisee?
Our franchisees come from a diverse range of backgrounds. Their individual endeavours partnered with the proven support systems, experience and encouragement of Cash Converters has resulted in the establishment of many hundreds of successful franchisees throughout the world.
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What is the total investment required?
Total investment required $160,000 - $250,000
Estimated financing (Small Business Loan)
90% of Leasehold Improvement $150,000
Estimated franchisee contribution in unencumbered funds $100,000
(If you qualify for inventory financing your required investment will be lower than the example above.)
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What is the initial franchise fee?
The initial $25,000 - $35,000 franchise fee is paid when you sign your franchise agreement. It pays for your right to operate a Cash Converters franchise, the franchise system information you'll need to get your store open for trade, assistance with real estate selection, store design, opening inventory, staff recruiting and initial training and the delivery of Cash Converters operating manuals.
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How much working capital do I require?
Cash Converters is all about buying. If you don't have inventory to sell your sales won't increase which means you can't purchase new inventory. It's a vicious circle that can be avoided when you have the necessary working capital. This amount will vary depending on the size of your store.
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Who finds the location?
Cash Converters will work with the franchisee and local real estate agents to ensure that the location selected meets Cash Converters specifications.
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What is the size of each outlet and selling territory?
The average Cash Converters outlet is 3000 square feet and we make sure that each store is located within a fair sized territory consisting of a market of at least 30,000 people.
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What are the leasehold requirements?
Leasehold improvements include your store fixtures, merchandising cabinets, construction, security systems, safe, telephone system, signage, computer system, storage racks and testing equipment. All of these items are determined by Cash Converters to maintain consistency and we have a selection of reliable contractors and suppliers to get the job done. It couldn't be easier!
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Where do I obtain my initial opening inventory?
We know that people will not sell their goods to an empty store, so your initial inventory comes from other franchisees through a wholesale stock transfer. This means you buy inventory from other outlets for 50% of the retail price. The inventory contains a mix of high and low end items which means customers will have a good selection to choose from once your store opens. You can test all merchandise prior to purchase to ensure that everything you place on your retail floor is in goods working order for your new customers.
Depending on your circumstances, financing may be available for this portion of the capital required to open your Cash Converters location.
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Who do I turn to for on-going Operational support?
Each Cash Converters franchisee has the support of a regional business consultant. Your consultant has extensive experience with our franchise system and is available to offer assistance on day to day activities or whenever you need a few words of wisdom. Your consultant also reviews and advises you on your P&L as needed.
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What are the monthly royalty fees?
Cash Converters offers franchisees a unique fixed royalty. It works on a fixed amount that is paid each week and increases each year on the anniversary date.
Year of Franchise Term |
Weekly Royalty |
Annual Amount |
1 |
400 per week |
20,800 |
2 |
600 per week |
31,200 |
3 |
800 per week |
41,600 |
4 |
1000 per week |
52,000 |
5-10 |
1000 per week plus |
- |
| - |
3% or CPI whichever is greater |
- |
The fixed fee system has many advantages for franchise operators. For one thing, all franchisees pay the same rate, so if you are performing at a higher level you don't have to pay more for the extra effort. This is truly unique in the world of franchising. Most times the better you do the more you pay. The fixed fee also allows us to focus on your business improvements instead of spending time analyzing your sales results to increase our own revenue. Finally , a fixed fee means you know exactly where you stand, therefore budget planning, a critical element in any successful business is much easier.
As you can see during the first five years franchise fees are staggered to ensure that you have extra cash flow for those critical start-up years. If you compare our rates to a conventional percentage based franchise program you can see why people are attracted to the Cash Converters program.
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What about marketing?
If people don't know what you do, where you are or what you sell they won't buy a thing. That's why advertising is so important to the success of any business. At Cash Converters we rely on group buying power for production and media purchase. However we do realize that each market is unique and we review advertising requirements at the local level to ensure everyone has appropriate coverage.
Cash Converters franchises are divided into regions across Canada. In a truly group effort each franchise contributes monthly
to the Marketing Fund. This fee pays for the national marketing programs and promotions, some in-store merchandising materials, creative, productions costs and administration fee of 7.5% from each franchisee's contribution.
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What are the on-going training fees?
From the very start we are behind you all the way and that means training both you and your staff members. You'll spend a full week at Cash Converters Head office learning everything about being a franchisee and we follow that up with hands-on in-store training. The training doesn't stop when the doors open. We continually improve training materials and develop new manuals and training tools you'll draw from each and every day. Most training tools are distance based learning systems that allow you to train at your own convenience. Our franchisees pay a minimal amount per month to the training fund.
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What is the renewal fee?
Your franchise agreement allows you to operate your Cash Converters franchise for a period of 10 years. A renewal fee of $25,000 - $35,000 at the end of that term will allow you to continue the operations of your business for an additional 10 years.
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