#SAFranchiseFriday featuring Cash Converters
Cash Converters is the leader in the buying and selling of quality pre-owned goods in South Africa and has been since 1994. Launched in Perth, Australia in 1984, Cash Converters has grown to become the world’s largest cash and asset converter, and provider of short-term loans. Today, Cash Converters is a multi-million-dollar international business with more than 750 stores in 22 countries and the brand is still growing.
Whatever happens in the world, people will always need access to cash — whether they’re selling their belongings, borrowing money or just looking for a great bargain. Having pioneered the transformation of the buying and selling of quality pre-owned goods, Cash Converters offers an exceptional, recession-resilient franchise model with multiple revenue streams that provide franchisees with an opportunity to achieve real wealth.
The Cash Converters business model is based on the principle of providing consumers in the communities they serve with access to cash through a number of different products and services. The internationally aligned rebrand and new store design of Cash Converters southern Africa ensure that this household brand is top-of-mind when consumers choose to sell their goods or loan cash.
A Cash Converters store is divided into two distinct areas — retailing and financial services. This gives franchisees the security of three revenue streams: (1) Buying and retailing: specialising in the buying and selling of quality second-hand household goods, (2) Cash Advance: secured lending against the customer’s valuables (pawnbroking), and (3) PayDay Advance and 1 | 2 | 3: unsecured loans against a customer’s salary.
Prior to the opening of a store, the appointed development manager spends a month with the franchisee to assist with setting up the business, stocking the store and recruiting and training staff.
The Cash Converters model requires a hands-on owner-operator who has a minimum unencumbered cash investment of 50 percent of the establishment cost.
Cash Converters Training Academy has developed a comprehensive training programme for franchisees and their staff. Each new franchisee attends an intensive 2-month training programme prior to their store opening. In addition, franchisees have at their disposal a dedicated marketing team tasked with developing individual marketing strategies, plans and elements to promote the store in their local community.
Cash Converters also provides its franchisees with proprietary software for marketing and reporting as well as analytical purposes, along with a dedicated, ring-fenced full spectrum accounting service.
The following are some of the criteria assessed when awarding a franchise — an owner-operator, previous business experience, a trader/’smous’ mentality, a people person, initiative, motivation, and a sense of humour.
Founder: Brain Cumins
Year founded: 1984
Area of origin: Australia
CEO: Richard Mukheibir
1st SA franchise opened: 1996
Number of SA outlets: 83
Management fee: 5% to 4% of turnover
Marketing fee: 4% to 3% of turnover
Agreement term: 10 Years
Renewal term: 10 Years
* Amounts quoted are VAT exclusive
Establishment cost: R2,7 million to R3,3 million
Franchise joining fee: Included in set-up cost
Working capital required: Included in set-up cost
Total average set-up cost: From R2,7 million (estimated for 2018)
Average monthly turnover: R500k retail & R500k money lending
Achievable gross margins: 50% +
WANT TO KNOW MORE?
Contact Ilsé Murray on +27 87 820 4271 email@example.com