Top100 Cash Converters
ABOUT CASH CONVERTERS
Cash Converters has grown exponentially since Brian Cumins founded the business in Perth, Western Australia, in 1984.
Today it’s a multi-million-dollar international enterprise with more than 700 stores in 18 countries across the globe.
There are currently 83 Cash Converters stores in South Africa and we aim to have 100 open by the end of 2019. We’re looking for determined, motivated, passionate franchisees to help us reach our target.
MEET THE TEAM
RICHARD MUKHEIBIR
CEO
Richard is the quintessential entrepreneur: a dynamic, driven businessman with experience across many sectors. His leadership style is inclusive, intuitive and infused with his personal value system of hard work, trust and honesty. As the co-founder of the Southern African business, he is responsible for operational growth and sustainability.
PETER DU TOIT FORESHAW
CFO
Co-founder Peter is a chartered accountant with extensive financial and franchising experience. He’s also a gifted business strategist with an irrepressible creative streak. He’s been instrumental in evaluating franchisees' financial positions and investigating various alternative methods of financing new businesses.
OUR CULTURE & VALUES
Passion
A passion for our business drives everything we do. It’s why we look to champion new ideas and concepts within the business, why we’re always searching for new ways to meet customers’ needs, and why we always have an eye on gaps and opportunities in the market. We’re passionate about creating a culture of success, not only in business, but by directly influencing the lives of our staff as we help them reach their personal goals.
Professionalism
Professionalism permeates all areas of our business – from the highly visible customer service, to the robust systems and processes that support our operations. Our belief in the philosophy of continuous improvement is why we strive for operational excellence and empower our people with the appropriate skills to take full responsibility within their roles.
Integrity
Integrity sits at the heart of how we do business. Maintaining a trustworthy, honest, ethical approach supports our long-term perspective and confirms our leadership – both in a market sense, and as a valued service provider in society. It legitimises our offering in the minds of our customers and stakeholders.
Respect
Respect is the cornerstone of how we treat customers and each other. This means fostering a culture of respecting people’s needs and circumstances and a recognition of their worth, opinions and viewpoints.
Collaboration
We recognise the strengths and advantages of collaboration and communication in making us more effective at what we do. Internally it enables us to develop best practices and learn from our successes and challenges. Externally, our collaboration with local communities and government reinforces the positive nature of our business and supports a win-win outcome.
OUR FRANCHISE OFFERING
Cash Converters has transformed the business of buying and selling quality pre-owned goods.
We provide franchisees with a proven business model – supported by one of the most comprehensive training programmes in the industry.
A Cash Converters store is divided into two distinct areas — retailing and financial services. Our retail section sells quality second-hand household goods at roughly half the price customers would expect to pay for them new, with most products covered by a six month guarantee.
We introduced our financial services offering in 2007 to coincide with the arrival of the National Credit Act. Our first product, called Cash Advance, is a loan secured against the customer’s goods.
Then in 2009 we launched PayDay Advance – our first unsecured moneylending product – a small short-term loan repayable on the customer’s next payday (loans between R400 – R4000). We subsequently introduced the 1 | 2 | 3 Loan (a R2000 loan payable over 3 months) and are planning to launch more loan products in the future.
In contrast to difficult global economic conditions, our franchisees have experienced double-digit growth year-on-year over the past five years. That gives us the confidence to say that a Cash Converters franchise has the ability to provide you and your family with the lifestyle you aspire to.
Our new corporate identity at store level has created a bright, modern and cheerful ambience, that enhances the shopping experience for our wide range of customers.
Over the last 25 years Cash Converters has spent more than R300-million building the brand in Southern Africa, rewarding franchisees for their faith in the business and creating a sustainable model that both sides can benefit from.
OUR VALUE PROPOSITION
Helping people get on with their lives.
PRODUCTS & SERVICES
SELLING QUALITY SECOND-HAND GOODS
We source our stock from the public. They sell us their quality unwanted goods in our Buy Shop, which allows us to carry a diverse and constantly evolving range of items.
We give franchisees a high degree of flexibility with pricing, allowing them to respond to fluctuating economic conditions.
We proudly comply with the Consumer Protection Act (CPA) and most goods we sell carry a six month guarantee. Faulty goods that are returned within six months can either be repaired at our cost, replaced with an item of similar value, or refunded at the purchase price.
FINANCIAL SERVICES — SECURED MONEYLENDING
Cash Advance is a pawn transaction where a customer gets an upfront cash loan against an item of value left in our care. When the loan is repaid the item is returned. The fees charged depend on the amount loaned and comply with the National Credit Act. Any Cash Advance item not redeemed goes onto the retail floor for sale.
FINANCIAL SERVICES — UNSECURED MONEYLENDING
PayDay Advance and 1 | 2 | 3 Loans are short-term, instant cash loans against the customer’s next salary. To qualify for a PayDay Advance or 1 | 2 | 3 Loan, the customer must be permanently employed, paid electronically and not under debt review. Our strict verification process ensures bad debt is kept to a minimum.
PayDay Advance and 1 | 2 | 3 Loans can be paid out on our Cashies™ Card — which is essentially an FNB eWallet. This innovation is a first in our category and offers the same functionality (and charges) as an FNB debit card. For franchisees it offers a security benefit since it minimises the need to hold large amounts of cash on the premises.
The Personal Finance Centre (PFC) is a separate area within in the retail store where we offer microlending. The PFC is designed to be private, professional and empathetic. The qualification process takes between 15 and 20 minutes and for easy management, all transactional information is captured on CCPOS, our state-of-the-art, cloud-based point-of-sale system.
Cash Converters Personal Finance provides a R1 million credit line to the franchisee PayDay lending book, giving franchisees working capital to fund the growth of their business.
MARKET TRENDS & TARGET MARKET
Who are our customers?
Our wide offering brings in customers from all walks of life, from bargain hunters to people needing cash to tide them over until the next payday.
BECOME A FRANCHISEE
Anyone can become a Cash Converters franchisee, but it usually attracts a particular kind of trader.
Franchising is all about working to a tried and tested model where success comes from operating within set parameters. That said, there will always be room for Cash Converters franchisees to improve and modify certain processes within the business.
When awarding a franchise, some of the criteria we consider are:
- Owner operator
- Alignment to our values
- Prior business experience
- Skilled and savvy trader
- People skills
- Passion and energy
- Initiative and self-motivation
ESTABLISHMENT COSTS
MINI STORE (250sqm)
Establishment cost
R2 947 375
Joining fee:
R150 000 (Incl in Total Set-Up / Establishment)
Working capital:
R750 000 (Already Included)
TOTAL set-up cost:
R2 947 375 Ex VAT
TOTAL set-up cost = Establishment cost + Joining fee + Working capital
Own cash contribution requirement:
R1,5 million (50% of establishment cost)
MIDI STORE (400sqm)
Establishment cost
R3 598 663
Joining fee:
R150 000 (Incl in Total Set-Up / Establishment)
Working capital:
R950 000 (Already Included)
TOTAL set-up cost:
R3 598 663
TOTAL set-up cost = Establishment cost + Joining fee + Working capital
Own cash contribution requirement:
R1,8 million (50% of establishment cost)
LOCATION REQUIREMENTS
The ideal location for any of our stores is a strip mall, with ample parking near to an anchor tenant and the option to have split entrances for our Buy Shop our Retail Floor.
TYPICAL LAYOUT
STAFFING REQUIREMENTS
A mini store employs approximately 9 staff members, and a midi store 13.
TRAINING
The Cash Converters Training Academy has developed a comprehensive training programme for franchisees and their store staff, providing full support from the very beginning and on an ongoing basis.
Each new franchisee must complete an intensive two-month programme that helps develop their business skills and trains them in the services we offer.
Through a combination of in-store experiences, classroom-based and online training, we make sure that they experience all job roles and have the opportunity to put their new skills into practice before opening their own store.
Ongoing training – via videos and our state-of-the-art e-learning platform – ensures that franchisees are continuously improving their skills, while staff receive updated training in the classroom and in-store.
FRANCHISOR SUPPORT
The success of Cash Converters comes down to both the support we give franchisees and our robust processes. The Franchise Head Office located in Midrand, South Africa, has a team of support staff focused on providing accounting, marketing, IT, store design and customer care services.
A dedicated store development manager provides support to new franchisees before their store opens and for two weeks to a month after, at which point the field service consultants take over.
Our field service consultants and their support staff plus the store development managers are operations specialists and your dedicated point of contact as a franchisee.
Our support network also includes existing franchisees who have ‘walked the walk’ and can offer advice based on their own experiences.
AVAILABLE LOCATIONS
The link below highlights many prime sites we’ve identified for new stores. We’re actively recruiting franchisees who share our values and enjoy the reward of being able to build sustainable wealth for themselves and their families.
Your franchise sales consultant will help you find the location that’s best for you. If you want to start the journey to becoming your own boss, please complete our contact form at the bottom of the page.
TERMS OF AGREEMENT
Agreement term
10 Years
Management services / royalty fee
Lowest royalty structure in the industry, to be discussed in detail when we meet.
Management services / royalty fee
Lowest marketing structure in the industry, to be discussed in detail when we meet.
COMPANY INFORMATION
Registered name
Cash Converters Southern Africa (Pty) Ltd
Registration number
1994/001274/07
Head office address
22 Mac Mac Rd, Waterfall Office Park, Vorna Valley, Midrand
Postal address
Private Bag X007, Halfway House, 1685
Phone
+27 87 820 4066
Website