Cartridge World: Crunch time

In recent months, the phrase 'credit crunch' has been well used. On any day, broadsheets, tabloids and broadcasters threaten us with financial gloom, rising risk of recession and falling house prices.

But if you wish to invest in business, not property, will you find funding? Is a franchise a good bet? You bet!

Banks make money by lending money. Banks are willing to lend but have tightened the rules and borrowing has become more expensive. The banks want to invest in a sound business model - but when you are starting a brand-new business, it is doubtful your confidence will reassure the bank manager. Experience shows that in previous times of recession, investment in franchise businesses has bucked the downward trend.  

If your new business is part of an established model, one that is proven to be successful and is, in the case of Cartridge World, the market-leader in its field, you are immediately a lower risk, and undoubtedly less risk than a start-up. The media hype about the credit crunch may be deafening, but banks remain keen to invest in businesses that are proven to be minimal risk. An established franchise like Cartridge World is low risk. Therefore, despite what the papers might say, banks will lend money to new franchises.

Launching a franchise business is an investment, and impressive returns can be made. A recent resale of a Cartridge World franchise realised a profit in excess of 440 per cent on the initial investment of £50,000 made five years ago. The new owner is equally ambitious, and already looking to invest in further stores.  

Cartridge World has been established for 20 years. It is a mature business model with more than 1600 franchises in over 63 countries. It is the market-leading retailer of refilled and remanufactured printer cartridges. Cartridge World can refill almost any inkjet or toner cartridge, matching the manufacturer's original product to ensure consistent quality of print, while making substantial savings on the cost of a new product.  

Cartridge World has been established in the UK since 2001, and now has a network of over 270 franchises. There remain a number of opportunities for prospective franchisees, specifically in Scotland, the south west of England, Northern Ireland and the Republic of Ireland.

The Cartridge World business model has the technical resource to guarantee that it supplies ink to match the original's quality, in the correct proportions, ensuring that the printer cartridge functions exactly as it did brand new.

Franchises also offer a range of peripheral printing-related supplies including original and compatible cartridges, speciality papers and printers.

The Independent recently began a debate about the high cost of original equipment manufacturer (OEM) printer cartridges. By refilling or remanufacturing, consumers are saving substantial amounts: a fact that's important to Cartridge World customers.

But the savings don't stop there. Cartridge World also delivers an environmentally friendly service. According to a study by Recycler Magazine, in 2000 more than 47 million printer cartridges were sent to landfill in the UK. With ownership of PCs and printers rising year-on-year, it is fair to expect this figure has increased since then.

Cartridge World supports this environmentally friendly service with a number of green policies. For instance, Cartridge World replaced plastic bags with paper bags, the 'greener' alternative, four years ago.

But what is it like to be a Cartridge World franchisee? Ashley Smith was awarded Franchisee of the Year in March 2008. He opened his franchise in Rotherham in 2003 and has watched it grow steadily since. The award was based on the store's performance in 2007 when turnover increased by more than 10 per cent year-on-year, with total revenue in excess of £200,000.  

When Ashley opened the store he was working full-time with one part-time member of staff. An additional member of staff who joined him within the week still works for him, as does a second who joined him in the first four months. He now has seven people on the payroll.

Ashley says: 'I certainly have more responsibility now but my life has changed completely, for the better. I'm financially more secure and I've more freedom.

'If you're thinking of investing in a franchise, my recommendation would be "go for it!" Cartridge World is superb, saving customers money, effort and time. Emphasis on the best possible customer service has made a difference. If any customer has a problem, they know they can come back. Increasingly the environmentally friendly aspect of refilling rather than sending cartridges to landfill is bringing in new customers. Home users and businesses don't want to send anything to landfill if there's an alternative. Cartridge World is the alternative.'

On the benefits of being a Cartridge World franchisee, Ashley says: 'The real safety net is you know you can always talk to someone. You're never on your own. There's someone at the end of the phone who's there to provide the answers you need.'

With over 270 established franchises operated by people like Ashley, a new franchisee can be confident of all the support they may require. Cartridge World offers investors a viable business model. It offers comprehensive initial training and ongoing support.

Because a proven franchise system is a recognised route into business, many leading banks will lend a substantial proportion of the initial investment required. With the potential to achieve turnover in excess of £200,000 per annum and high profit margins, the time is right to invest in a Cartridge World franchise.

The global financial turmoil can be beaten.

Investment level:£39,950 + VAT is the initial set-up fee £48,000 + VAT is Capital Equipment, which consists of production machines, store fit-out and vehicle. This can be subsudised two ways:
• Lease option
• Outright payment, own funding or bank loan £15-£20k as a working capital for the first 3/12 months of trading
Website: www.cartridgeworld.co.uk
Email: franchise@cartridgeworld.co.uk
Phone: 01423 878520
Franchise classification: Re-filling of laser and ink cartridges, B2B/Retail, Re-cycling