Cash Converters are one of the largest pawn brokerage companies in the world. Opening a franchise with them is a great way of getting into this profitable business with a house hold name.
About The Company
Cash Converters are a global firm operating with 700 stores, 230 of which are UK based. The UK sector is one that Cash Converters are looking to expand on and as a nationally recognised company they are arguably many people’s first choice when a pawning service is required. Cash Converters have been trading for 30 years and have put a strong emphasis on franchising with Cash Converters in the UK being full members of the British Franchise Association. As well as this they are a council member for the Consumer Credit Trade Association as well as the Consumer Finance Association. CEO David Patrick is also a board member for The National Pawnbrokers. This is indicative that the Cash Converters business utilises good practice to operate a sustainable operation.
How to Apply and Training
Application is available online after which you will have an opportunity to work with another franchisee to see if Cash Converters is for you. This also presents a chance to show that you possess the qualities Cash Converters look for in their franchisees, namely good management skills, high standards and integrity and financial acumen. If you are accepted you can expect a 10 week training and induction plan comprising classroom and field training. There is also additional support from a Regional Training Manager as well as a Franchise Development Manager.
What is the Initial Investment?
Opening a Cash Converters store will require you to have assets of at least £223,000 of which £125,000 should be liquid cash. This £223,000 includes a £30,000 franchise fee which covers a 10 year lease on the franchise. As well as this there is a weekly fee to cover licences, marketing and a service fee that come together to cost around £750.
How Much Can This Earn?
The average profit for a Cash Converters store is claimed to be £125,000 per annum but this figure can vary.
Conclusion
Pawn brokers are a solid investment and with the right location should be able to make money regardless of the general economy. The fact that Cash Converters is a well-known name in the field adds a lot of weight to a business that might well struggle if it weren’t franchised. If the start-up capital can be raised I believe that this represents a decent investment although this isn’t a passive income stream so hard work will be required.
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