This recession-resistant franchise is crushing it:
- Low employees
- Strong-unit sales
- Low build-out costs
Let’s dive into PayMore:
Business Model
Buy, sell, & trade used consumer electronics:
Cell phones, tablets, laptops, gaming systems, & more. It’s basically a modern pawn-shop with a twist.
The retail locations primarily serve as collection sites.
Locations are nice areas where higher-income people have devices to sell. Their goal is to sell the product online within a few days (if not hours!)
Your gross profit is the difference between an instant cash offer vs. the work to sell it online.
The brain of the operation is a custom-built point-of-sale software.
This software guides employees on every product’s real-time trade-in, wholesale, & retail value. This takes all of the valuation, negotiating & decision-making out of the employee’s hands.
This is a HUGE benefit for scaling a franchise. The fewer decisions an individual has to make and the more the business is driven by a process, the better.
Earnings Potential
In the 2024 FDD Item 19 they report the annual sales for 1 affiliate location + 8 franchise locations that were open for a full 12 months in 2023.
This is the only financial information they disclose. As with all franchises, you’ll have to perform market research and due diligence by speaking to existing franchisees to estimate net profit margins.
Start-Up Costs & Ideal Owners
Single Unit: $139k to $266k for a 700 to 2,000 sq ft retail center.
They are looking for tech-savvy, driven entrepreneurs who want to develop multiple locations within a market. Right now they have a 5-unit minimum.
They offer very favorable multi-unit development terms, under which you pay a portion of the franchisee fee up-front plus the balance when the lease is signed. This reduces your up-front cash investment.
You don’t incur any of the build-out, marketing, or inventory costs until you find & open the location.
Items 5 & 7 of the 2024 FDD provide a full breakdown of the development schedule and up-front investment.
They require multi-unit owners to utilize a hub-and-spoke model, where a large “hub” stores inventory, lists products online, and ships them.
You’ll have smaller “spoke” locations to collect products & do light retail.
Open Markets & Next Steps
Reply to this email with your name, phone # & zip code to learn more
We’ll check if your market is open and connect you to the Paymore team.
We also provide you with checklists & resources to help you through the discovery process.
Many major markets have been bought by major developers
Here are some wide-open markets as of today
Cheers!
