#SAFranchiseFriday featuring Cash Converters

BACKGROUND
Since Brian Cumins founded Cash Converters in Perth, Western Australia in 1984, the Cash Converters chain has grown exponentially into a multi-million dollar international business with more than 750 stores in 20 countries, and is still growing.

Cash Converters has pioneered the transformation of the buying and selling of pre-owned goods, and offers an exceptional franchise opportunity that provides franchisees with an internationally proven, recession-resilient business model for achieving real wealth.

Cash Converters stores offer multiple revenue streams making this a sustainable franchise that offers the cash you need to live the life you want.

THE CONCEPT
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. The internationally aligned rebrand and new store design of Cash Converters southern Africa ensures that this household brand is top-of-mind when consumers choose to sell their goods or loan cash.

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 that suit their personal and financial circumstances.

A Cash Converters store is divided into two distinct areas — retailing and financial services. This gives franchisees the security of three revenue streams:

• Buying and retailing: specialising in the buying and selling of quality second-hand household goods.
• Cash Advance: secured lending against the customer’s valuables (pawnbroking).
• PayDay Advance and 1 | 2 | 3: unsecured loans against a customer’s salary.

Prior to the opening of a store the development manager spends a month with the franchisee to assist with setting up the business, recruiting and training staff, and stocking the store.

The Cash Converters model requires an owner-operator franchisee with significant financial investment, combined with a hardworking, hands-on approach to running a customer-oriented business.

FRANCHISOR SUPPORT
The Cash Converters Training Academy has developed a comprehensive training programme for franchisees and their staff. Each new franchisee is required to attend an intensive 2-month training programme prior to opening their store.

In addition, franchisees have a dedicated local area marketing specialist team which develops individual marketing strategies, plans and elements for their store in their unique community.

SNAPSHOT 
History
Founder: Brian Cumins
Year founded: 1984
Area of origin: Australia
CEO: Richard Mukheibir

Network
1st SA franchise opened:1996
Number of SA outlets: 80

Financials
* Amounts quoted are VAT exclusive
Average set-up cost: R2,4 million
Initial joining fee: R125 000
Average monthly turnover: R500 000 retail &
R500 000 money lending
Achievable gross margins: 50% +

Franchise Agreement
Management fee: 5% to 4% of turnover
Marketing fee: 4% to 3% of turnover
Agreement term: 10 Years
Renewal term: 10 Years

WANT TO KNOW MORE?
Contact Ilse Murray on +27 87 820 7411 or email ilsem@cashconverters.co.za
www.cashconverters.co.za