Check Cashing has only become more and more popular in the USA and since the demand is growing among users, the supply is also growing, with a simple business model that they charge anywhere between 2% to 12% depnding upon state more and more check cashing stores are opening in he USA.
Currently USA has more than 14000+ stores and check cashing is an 100 Billion Market and is growing steadily.
So, If you are also considering opening a check cashing store then this article is for you. We will tell you everything you need to know, whether you are considering opening a franchise or setting up your own store.
For opening a check cashing store you have two ways i.e. taking up a franchise or opening your own store, each comes with its own set of conditions and now let’s look at them.
Franchising
Now, If you are considering taking a franchise of check cashing store you have a few options like United Check Cashing, Family Financial Centers, Ace Cash Express and Cash Plus.
Note: We have only included the franchises who have a working website and have a good online presence, hence some small franchises may have been missed.
If you want to find any other franchise then you can search it here and know about it in detail
If you are completely new to this business without any help then considering and learning through a franchise is pretty good option, as they provide you a lot of assistance regarding it and also covers a lot under their hood like the advertising, marketing, acquiring licenses etc.
So, here are a few franchise options you can consider :
United Check Cashing
Based out of Philadelphia they Been in Business for around 30 years and has over 100 locations in the United States.
| Initial Investment | $226,000 – $297,000 |
| Net Worth Requirement | $350,000 |
| Liquid Cash Requirement | $120,000 |
| Initial Franchise Fees | $30,000 |
| Royalty | Varies |
| Ad Royallty Fee | $1000/year |
| On the Job Training | 1 week |
| Classroom training | 2 Weeks |
| Number of employes needed | 2-3 |
You can call on this toll free number to know more: 1-800-626-0787
You can Contact them for franchising here http://www.unitedcheckcashing.com/contact-us
Family Financial Centres
Founded in 2004, FFC has 15 years of experience in this field and has 50 franchises all over the United States.
| Initial Investment | $153,710 – $307,010 |
| Net Worth Requirement | $500,000 – $1,000,000 |
| Liquid Cash Requirement | $60,000 – $1,000,000 |
| Initial Franchise Fees | $40500 |
| Royalty | Varies |
| Ad Royallty Fee | $1000/year |
| On the Job Training | 40 hours |
| Classroom training | 40 hours |
| Number of employes needed | 1-2 |
| Field Training | NA |
Learn about the activities of FFC here https://www.ffcfranchising.com/training-and-support/
Know about different prices of the franchise in detail and different options https://www.ffcfranchising.com/investment/
You can Contact them here https://www.ffcfranchising.com/get-started/
Ace Cash Express
With more than 900 locations over the United States, it is among the biggest franchises in the united States for check cashing.
Since they have not provided a lot of Info Online so you need to call them for getting the details
Key Points and Requirements
| Initial Investment | $143200 – 279100 |
| Net Worth Requirement | $500,000 – $1,000,000 |
| Liquid Cash Requirement | $60,000 – $1,000,000 |
| INitial Franchise Fees | $15000-$30000 |
| Royalty | 6% |
| Terms of Agreement | 10 yrs |
| Renewal Fees | $500 |
Official Website https://www.acecashexpress.com/check-cashing
You can all on this Number for more info here 866.223.2274
Cash Plus
Cash Plus is an awesome business with many franchises around the United States. but they have mentioned very little information about their franchising program. So, you need to call them for getting more info
| Initial Investment | $198200-$284700 |
| Net Worth Requirement | $400,000 |
| Liquid Cash Requirement | $100,000 |
You can Call on the following number to find more information 1-877-227-4758
Official Website: https://cashplusinc.com
Setting up your Own Store
Now If you are looking to open your own store then, you need to prepare following things
Business Plan
You need to prepare a full Business plan for yourself and think of marketing budget, location, employee, cash ,upfront costs ,equipments ,sales projections ,debt ,business expansion etc.
Also talk to people already in this business and learn from their experiences.
Acquire Capital
This is a Cash Intensive Business because people come in with checks and want Instant Cash for their checks and you will receive money for that in 3-4 working days depending upon the amount. Hence, You will need capital for running the business so think of it as to how will you get the capital for all the activities like Renting the building, Buying the machines, and giving people cash in return of checks.
License and registration
Check cashing Businesses are high cash Intensive business and hence referred to as MSB (Money service Business) and due to this fact they are on radar for money laundering, and other money frauds that’s why USA government pays extra attention to these businesses and since you are the owner so You need to register with IRS as an MSB but if you are with a franchise then they can easily take care of this for you.
Register your Business here with IRS here
Also You need to follow certain rules laid down by the government , you can check the rules you need to follow as a MSB laid down by the government here https://www.fincen.gov/fact-sheet-msb-registration-rule
Hire a CPA
You should also hire a CPA for setting you up for you the technicalities of the business in the initial days so that you focus on running the business and also since it is such a cash intensive business, any business owner can break a law in his initial days so it’s better to hire a professional to maintain that.
Find a Retail Location
Locations plays a very important role in running cashing store because of the urgent need people have for it. So choose the location wisely and if you can acquire a previous cashing store which was shut due to any reason it is very good as people are already used to that place.
You need to find a busy location with offices near by as many employees cash their checks for various purposes.
Buy the Check Cashing machine
This is a very important machine as it lets you see all the databases for any issues and fraudsters etc. and help you to run in compliance with the government policies.
Also it helps you in checking the validity of the checks. You need to buy the machine as soon as the operation starts.
Focus on Security
Since it is such a Cash intensive business hence you can attract a lot of problems and also you can face problems like an employee turning their backs against you, chances of theft at your place.
So you need to pay attention to security in high details like installing security cameras, additional locking measures etc.
Also you should get an insurance as running this business can involve high risk. Many Insurance providers cover MSB’s and offer following coverages
- Employee Dishonesty Coverage
- On Premises Coverage
- In Transit Coverage
- Forgery Or Alteration
- Extortion / Kidnap Ransom
You can follow this guide for security procedures to follow when you start your own check cashing centre
Hire employees
Although a lot of employees are not needed in this but still you need 1-2 employees to run the operations smoothy so hire the people as soon as the business starts making good profit.
Final Words
We hope we were able to clear all your doubts about starting a check cashing business and it is similar for all the states in United States.
Rest can be verified by a CPA, but still if you have any questions comment down below and we will answer them as soon as possible