Cash America 2010 Annual Report Download - page 37

8
renewing them. In addition, the Company has various other trademark applications pending in the United States and
other countries in which it operates.
Franchises. Each of the Company’s unconsolidated franchised retail services and check cashing locations are
subject to franchise agreements that have varying durations that are negotiated individually with each franchisee. As
of December 31, 2010, the Company had nine unconsolidated franchised retail services locations and 116
unconsolidated franchised check cashing locations.
Personnel. At December 31, 2010, the Company employed 6,017 persons in its operations, of whom 578 were
in executive and administrative functions. In addition to the employee count above, a third-party, Huminal, S.A. de
C.V., a Mexican sociedad anónima de capital variable ("Huminal"), employs 588 persons who provide full-time
services to Prenda Fácil.
Future Expansion
Storefront Expansion
The Company historically has expanded by acquiring existing retail services locations and by establishing new
start-up locations. The Company intends to continue expanding its retail services business within its existing
geographic markets and into other markets that meet its risk/reward considerations. Management believes that such
expansion will continue to provide economies of scale in supervision, purchasing, administration and marketing by
decreasing the overall average cost of such functions per unit owned. By concentrating multiple lending units in
regional and local markets, the Company seeks to expand market penetration, enhance name recognition and leverage
marketing programs.
In October 2010, the Company completed the Maxit acquisition, which expanded the Company’s pawn lending
presence in the States of Washington and Arizona. In December 2008, the Company completed the Prenda Fácil
acquisition, allowing the Company to pursue new growth in Mexico. The Prenda Fácil acquisition initiated the first
expansion into international pawn markets since the Company sold its European pawn lending business in 2004. The
Company plans to continue adding new locations in Mexico while actively evaluating further expansion into other
Latin American countries.
The table below outlines acquisitions, start-ups and closures for Company-owned retail services locations for the
years ended December 31, 2010, 2009 and 2008.
For the year ended December 31,
2010 2009 2008
Retail services locations at beginning of period 913 846 789
Acquired 44 3 113
Start-ups 40 69 1
Combined, or closed (47) (5) (57)
Retail services locations at end of period 950 913 846
When considering acquiring an existing lending location, the Company evaluates, among other things, the
annual volume of loan transactions at that location, the carrying cost of merchandise, outstanding loan balances and
lease terms of the facility or, if it is to be purchased, the facility’s fair market value. When considering the start-up of a
new retail services location, the Company evaluates the location of the prospective site, whether conditions in the
surrounding community indicate a sufficient level of potential customers, and whether a suitable facility is available on
acceptable terms.
After the Company has leased or acquired a suitable location and obtained the required licenses in the United
States, a new retail services location can be ready for business within four to eight weeks. The approximate start-up
costs, which consist of the investment in property (excluding real estate) and equipment, for recently established retail