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Download Franchising Brochure Contents PAGE Non-Disclosure & Reliance Statement .. .. .. .. .. .. 3 Definition of Franchising .. .. .. .. .. .. .. .. 4 CeX Franchise Opportunity .. .. .. .. .. .. .. .. 5 How the Franchise Works .. .. .. .. .. .. .. .. 9 Franchise Summary .. .. .. .. .. .. .. .. .. 11 CeX Franchise Package .. .. .. .. .. .. .. .. 12 Investment Requirement .. .. .. .. .. .. .. .. 13 Financial Statement .. .. .. .. .. .. .. .. .. 17 Management Team .. .. .. .. .. .. .. .. .. 21 Mission Statement .. .. .. .. .. .. .. .. .. 23 Training & Opening Support .. .. .. .. .. .. .. .. 24 Ongoing Operational Support .. .. .. .. .. .. .. .. 26 Launch Programme Outline .. .. .. .. .. .. .. .. 27 List of Contacts .. .. .. .. .. .. .. .. .. 28 Franchise Agreement Key Point Summary .. .. .. .. .. .. 29 Advantages of Becoming a CeX Franchisee .. .. .. .. .. .. 33 Our Requirements From You .. .. .. .. .. .. .. .. 34 Frequently Asked Questions .. .. .. .. .. .. .. .. 35 Next Steps .. .. .. .. .. .. .. .. .. .. 37 Action Plan Outline .. .. .. .. .. .. .. .. .. 38 Appendices Stores and Trading Results .. .. .. .. .. .. .. .. 39 Glossary of sales terminology.. .. .. .. .. .. .. .. 44 Page 2 Copyright © CeX (Complete Entertainment Exchange) Ltd. All rights reserved. last updated 24/03/2021 Non-Disclosure & Reliance Statement This document is the property of CeX (Complete Entertainment Exchange) and is intended for use by prospective Franchise investors and constitutes a confidential disclosure. CeX Franchising Ltd is the owner of the copyright in all material contained in this document. Other than as permitted by the Copyright Design and Patents Act 1988, no part of this document can be reproduced, copied or transmitted in any form or by any means (electronic, mechanical, microfilming, photocopying, recording, storage in a retrieval system or otherwise), without the prior written permission of a director of the company. It is made available subject to the express condition that it must remain in your personal care at all times and must not be revealed or imparted to any unauthorised person(s) or business(es). The information contained in this document is confidential and is given to you for your use in evaluating the CeX Franchise opportunity and must not be divulged to anyone other than your financial, business and legal advisors. Nothing in this Document is intended to constitute Financial or Professional Advice Prospective Franchisees are requested to make their own enquiries to establish the accuracy of the information provided. CeX Franchising Ltd or any person representing it will not be held liable for any loss sustained by any prospective Franchise investor from relying upon the contents of this document. This document is for guidance only and does not in anyway detract from the terms and conditions laid out in the Franchise Agreement which shall form the legal binding contract between CeX (Complete Entertainment Exchange) Ltd and the Franchisee. Page 3 Copyright © CeX (Complete Entertainment Exchange) Ltd. All rights reserved. last updated 24/03/2021 Definition of Franchising Franchising – a Strategic Partnership Franchising is fundamentally a business partnership between an established company (the Franchisor), wishing to expand its business, and independent third parties (the Franchisees). The partnership is governed by a legally binding contract, the Franchise Agreement, under which the Franchisor permits Franchisees to use its trade name, trademark and confidential business methods. In return, Franchisees accept certain restrictions on the way that business is conducted and financially reward the Franchisor on the level of success achieved. A Business Format Franchise gives the Franchisees the advantage of setting up in business with the support and advice of an organisation that has successfully carried out ‘First Phase’ pilot operations that serve as a blueprint. This system eliminates many of the risks that are involved in a normal business start-up situation. Definition of Franchising – a Strategic Partnership Franchising is a system of marketing goods and/or services and/or technology, which is based upon a close and on-going collaboration between legally and financially separate and independent undertakings, the Franchisor and its individual Franchisees, whereby the Franchisor grants its individual Franchisees the right, and imposes the obligation, to conduct a business in accordance with the Franchisor’s concept. The right entitles and compels individual Franchisees, in exchange for a direct or indirect financial consideration, to use the Franchisor’s trade name, and/or trade mark and/or service mark, know-how, business and technical methods, procedural system, and other industrial and/or intellectual property rights supported by continuing provision of commercial and technical assistance, within the framework and for the term of a written Franchise Agreement, concluded between parties for this purpose. Source: British Franchise Association The Franchisor develops the operating blueprint, has obligations to market and develop the Franchise as a whole and to help Franchisees improve their performance, at the same time maintaining and improving standards of quality and service. The Franchisor provides the Brand, Experience, Expertise and complete Know-how which all helps to reduce the learning curve, which is expensive in terms of both time and money. The Franchisee has obligations to uphold the good name of the Franchisor, to maintain and improve standards of quality and service, and to operate the business in accordance with the standard format/system. The operation will be to locally promote, sell and provide the product/service of the Franchise. The Franchisees provide the benefit of Entrepreneurial drive, motivation and ambition. Page 4 Copyright © CeX (Complete Entertainment Exchange) Ltd. All rights reserved. last updated 24/03/2021 CeX Franchise Opportunity The CeX Concept – Buy/Sell/Exchange Our business model is based on buying and selling from the same source: our customers. To succeed in such a business and overcome stock shortages or surpluses, we aim to achieve two optimal positions on all our products: 1. An optimal selling price which is competitive in comparison to buying the same product new – a price at which the product will sell. 2. An optimal purchase price – a price which customers are willing to supply the product. We constantly look at product supply and demand curves and adjust our prices according to our experience and using the sophisticated tools we have developed over the last 24 years. The Products The CeX (Complete Entertainment Exchange) brand is synonymous with technology led entertainment products. We currently group our product lines into the following six main categories, which we call super categories: Games, DVD, Computing, Electronics and Mobile Phones. Games Video Games are in the 6th Generation technology. From humble beginnings, with the likes of Atari and Sega, the video game business is now BIG business with its estimated value higher than that of any other sector in the entertainments industry. We currently store the buy and sell prices of over 100,000 lines. Movies Despite the rise of digital streaming services, DVD and Blu-ray remain a popular format for people to watch and collect their cinematic favourites. Computing In the fast moving world of computers, upgrading to keep ahead is paramount for technology buffs. You can do it cheaply with CeX. The goods that these technology buffs trade in, we then sell on to the rest of us at a bargain price. “£200 for a laptop anyone?” Page 5 Copyright © CeX (Complete Entertainment Exchange) Ltd. All rights reserved. last updated 24/03/2021 CeX Franchise Opportunity Mobile Phones We all have Mobile phones. But how many do we have stashed in a drawer doing absolutely nothing? Trade it in, upgrade it or get good money for it from CeX. Got a free upgrade you don’t need? Trade it in at CeX because we know everything sells for the right price. That’s the crux of the matter: getting the right price. We’ve got a team working on thousands of prices every day to ensure that you buy the stock in and sell it on quickly with a healthy margin which no new retailer could ever dream of making. Electronics From MP3 players to memory sticks to digital cameras, electronics is our fastest growing 'Supercat'. With ever more exciting inventions entering the market through the decades, a lot of older electronic gadgets can be got for bargain prices at CeX rather than gathering dust in someone’s loft. Bring it to CeX and get cash!. Future Categories New technologies appear all the time and as we genuinely love this stuff we want to trade them and make money. We are constantly monitoring the market for any new products on which money can be made. One of the best aspects of working on the shop floor is not knowing what the next bit of stock through the door will be. If it is not on our systems, instant message or phone our Pricing Team and we can agree a price that the customer is happy with and sell it for a price that makes money. It’s fun and gives us a range that no one else can offer from simply buying wholesale. Branded Accessories and Repairs Alongside one of our trusted service providers and as a compliment to our product range we now offer an extensive range of branded CeX accessories and a full electronics and phone repair service. Page 6 Copyright © CeX (Complete Entertainment Exchange) Ltd. All rights reserved. last updated 24/03/2021 CeX Franchise Opportunity The
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