Franchise Spotlight: Pawn Broker
Pawn Brokerage industry trends show that this is a sector with a long history which is teeming with franchise opportunity.
The pawn brokerage industry works on a simple transaction - an individual gives an item (the pawn or pledge) to a pawnbroker who values the item and gives the consumer money. The consumer can redeem the pawned item by paying what has been agreed upon within a fixed time. If the consumer cannot repay the loan then the pawnbroker can sell the item to recover their money.
Strictly regulated by local law enforcement as well as federal governments, pawn shops in Canada have helped people to access money quickly for many years. Franchisees will need to be able to quickly and correctly value items such as jewelry and electronics and stay up to date with market trends to understand what people are likely to be keen to pay for certain items.
Understanding interest rates and fee structures will be vital as well as being able to provide customers with financial advice and establish good relationships. Cash Converters Canada is a successfully franchised pawn brokerage business that benefits from consumers who are looking to turn their unwanted goods into instant cash, with buy-back potential.
Pawn Broker Industry Analysis
The pawn brokerage sector is a competitive and robust market where franchisees will benefit from the brand name and customer base of an established company. Franchisees will need to have good communication and organization skills to succeed in this people-focused role. Establishing and maintaining good customer relationships will ensure repeat business and enhance the reputation of your business.
Most franchisors will provide extensive training and ensure that franchisees feel confident valuing items and managing procedures. With people needing to use the services of pawnbrokers during times of financial instability, franchisees can benefit from investing in this recession-proof industry.