Franchise Focus
the need to recycle grows more urgent. It shows no sign of slowing either, as the latest products are released on a yearly basis and its competitors scramble to keep up. The future looks promising for a brand as relevant as CeX. A lack of serious competition in the
market allows the business to set its own prices, facilitating accelerated yet sustainable growth. It launched its first franchise operation in 2005, and has since expanded the network from the UK into the US, Spain, Ireland, India and Australia. Last year, a new store opened almost every week in the UK. The UK is now home to 207 stores –
more than half of these franchises – and there are 270 stores worldwide. Although the rate of expansion is rapid, CeX are as discerning about its franchisees as the products it sells, and it takes more than a love of gadgets to successfully run a CeX store. Becoming a franchisee requires great commitment financially as well as personally, and CeX ensures that all outlets operate to the same excellent standards. As with many retail franchises, the
investment level is substantial, and the work is sure to be a far cry from the Saturday job you perhaps had in your teens – however the initial outlay and hard graft pays dividends. Franchisees will need at least £40,000 of liquid capital, and the total investment starts at £150,000. A new store typically generates a return on investment within two years.
“Franchisees reap what they sow, and the effort that franchisees put in is matched by the unfaltering dedication and support from CeX”
The role of a CeX franchise owner-
manager is a diverse one, but it invariably requires great people skills, dedication and inexhaustible enthusiasm for the brand. Franchisees take complete responsibility for the running of the store, and must be able to motivate a team of staff and build rapport with customers. Franchisees reap what they sow, and
the effort that they put in is matched by unfaltering dedication and support from CeX. The initial training programme is a 12-week intensive store-based event, providing practical on-site experience that covers: all aspects of retail and sales principles; technical and bespoke point-of- sale systems and operational procedures;
supervisor and store management competencies; and general franchise and business ownership principles. The programme ensures that franchisees
are fully prepared and competent at running a CeX store, and only after this can they progress to the next stage. In addition to this comprehensive
training, each franchisee receives: • Ongoing procedure updates • Limited competition • Stock and pricing advice from experts • Ongoing support including intranet and business services
• Hands-on store identification, design and outfit
• Bespoke EPOS (electronic point of sale) designed especially for buying, selling and exchanging goods
Similar to the 12-month product
warranty in store, CeX offers each of its franchisees a Buy Back Guarantee. CeX are so confident in their business model that, should the franchise fail to meet the franchise owner’s expectations (subject to certain conditions), CeX will refund stock, shop build and fit costs, and take over the store management and running costs. Here, CeX franchisees describe their success operating their own businesses.
Jas Singh: “CeX were there every step of the way” Before purchasing his first CeX franchise
in Dudley, Jas Singh ran a chain of family- owned convenience stores in the West Midlands and his own removals company, so he was already well aware of the level of commitment it takes to head up a business. Still, he remains impressed by the tireless support his franchisor offers. “CeX helped me with my business
plan,” he explains. “They introduced me to an independent advisor and helped me negotiate a very competitive finance package, which was swiftly approved by my bank. “This is a large business to run and my
biggest commitment has been the time I’ve needed to spend training. You need to know the products and how the model works, I’ve probably spent six months training, following a detailed competency programme in various CeX stores in the West Midlands. Learning hands-on has been the best way for me. “The acquisition of a retail premises and
the legal negotiations process has been quite time consuming, but CeX provided a specialist solicitor to help manage this for me and were there every step of the way. I’ve also recruited a large team of staff and
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