The core business of Cash Converters is that of the franchising of retail stores, which operate as retailers of second-hand goods. The Cash Converters business has changed consumer perceptions of its industry by the systematic application of modern retailing practices, professional management techniques and high ethical standards to the management of its stores. As a result, Cash Converters has been able to position its franchised outlets as alternative retail merchandise stores and, in the process, created a profitable market for the group.
Franchising was adopted because of its inherent benefits to both the franchisor and the franchisee and its ability to help the Company manage cultural and commercial differences around the world.
As an international franchisor the Company receives the benefit of being able to expand its business quickly and receive the strong managerial commitment of a local franchisee. The franchisee in turn receives the benefit of investing in a successful retailing formula, the product of which is already well proven and as a result the business risk is significantly reduced.
Under the franchise agreements the franchisor provides each franchisee with a business format franchise; this provides each franchisee with the right to use the Cash Converters trademark and business systems.
The Company, Cash Converters International Limited, is the International master franchisor of the franchising concept. The Company sells a licence for the franchise rights of a country to a sub-franchisor. It is the sub-franchisor who develops each country, which they may split into individual territories or regions for sale to a regional sub-franchisor. The regional sub-franchisor is responsible for the sale of franchises to individual franchisees.
The individual franchisees are the strength behind the global network since they believe wholeheartedly in the concept and have an overwhelming commitment to succeed. This commitment and dedication to their business represents the strength behind the group and underpins the whole ethos of the Company.