How To's
What is the Actual Cost of A Wireless Zone Franchise?
Founded in 1988, Wireless Zone LLC offered its franchise the following year. As a franchisee, you will sell wireless and wired communication devices such as mobile phones, smartphones, internet-based communication devices, wireless data services, mobile hotspots, and many others.
With strong revenue, more than 800 employees in 431 locations in the US, this is potentially a lucrative franchise for savvy investors.
Franchise Description
As the name suggests, the franchise sells wireless and wired communication devices. Satellite communications and entertainment and security products and services, mobile and data plans are part of the deal. You will also be selling satellite and/or cable television and radio systems, among many others.
Training
Franchisees must complete Wireless Zone’s 120 to 160-hour initial training program before your store’s opening. It consists of store management training, product training, carrier relations, marketing and sales strategies, and floor sales training.
The franchisor may include additional training and meetings that will be mandatory. These may be held in various locations and may consist of updates on procedures, strategies, and other product information.
Territory
The location where you will open your franchise will require the franchisor’s approval. They will designate a “protected territory” within a two-mile radius around your store’s original location. This will change to a one-mile radius if the area has a population of 350,000 or more.
There will be exceptions if your location is inside a shopping mall which will automatically be the protected territory. However, this protected territory will not include areas where exhibitions, conferences, or conventions are held.
Obligations
The franchisor does not require franchisees to participate directly in the store operations. They will have to manage the store by having employees who the franchisor will find acceptable. These employees will serve as the franchisee’s proxy, which they will request through a form that the franchisor will approve.
However, they are required to assign a manager if they cannot devote at least 40 hours every week for store operations. The designated manager must complete training to the satisfaction of the franchisor.
In addition, the franchisor prohibits the selling of counterfeit, unauthorized, and illegal goods. They also require franchisees to exclusively offer inventory and services that are part of their requirements.
Term of Agreement
Seven years is the length of a franchise term for Wireless Zone. If you meet the requirements, an additional seven-year period is available.
Financial Assistance
If you’re looking for financial assistance, Wireless Zone will not offer monetary help for the initial franchise investment. They also do not have an obligation to assist you with financing the equipment or the continued operation of your franchise. You are encouraged to find financing elsewhere.
On the other hand, the franchisor has credit standards that if the franchisees meet, Wireless Zone may offer financial assistance for all or part of the initial franchise or renewal fees.
Did you Know?
Here are a few fun facts about Wireless Zone if you want to learn more about it:
- They are the largest Verizon franchisor in the US, with over 400 locations
- They have consistently won awards from Entrepreneur, Franchise Times, and Franchise Gator
- Plus, they have consistently donated to charities. A few of their recipients were Sandy Hook Promise, No Kid Hungry, and its philanthropic arm, the Wireless Zone Foundation for Giving
- Originally known as “The Car Phone Store”
Your Investment
The list below will show you how much a Wireless Zone franchise is going to cost. Take note that this may change without prior notice. We recommend contacting their franchise team to get the precise details and pricing.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $1,000 | $25,000 |
| Travel and Living Expenses While Training (per person) | $2,500 | $8,000 |
| Real Estate/Rent | Not Included | |
| Real Estate Improvements | $10,000 | $50,000 |
| Business Equipment and Supplies | $10,000 | $16,000 |
| Computer Equipment, Signs, Fixtures, Kiosks and Displays | $51,000 | $132,000 |
| Miscellaneous Opening Costs | $2,500 | $15,500 |
| Initial Product Inventory | $50,000 | $75,000 |
| Initial Marketing Program | $5,000 | $5,000 |
| Sales Tax, Use Tax, Other Similar Tax, Freight and Delivery Charges | $3,000 | $38,000 |
| Additional Funds – 3 months | $25,000 | $50,000 |
| ESTIMATED TOTAL (excluding real estate costs) | $160,000 | $414,500 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalties | Not more than 22% of the gross profit |
| New Program Fees | A royalty or another pre-determined fee payment. |
| Foundation Contribution | $0.25 contribution for each account activation and upgrade transaction. |
| Audits | Cost of audit, plus amount of underpayment with interest |
| Interest | 1.5% per month. |
| Sales, Use, Gross Receipts, & Excise Taxes | The amount imposed by the taxing authority. |
| Bank Charges, Administrative Costs; & Credit Card Fees | The current fees, plus administrative fee. |
| Renewal Fee | The renewal fee is $7,500. |
| Holdover Fee | $500 per month. |
| Training “No-Show” Fee | The current fee |
| Transfer Fee & Sales Commission | Current transfer fee |
| Software License Fees and Additional POS License | Ongoing fee is $100/mo including up to 3 POS licenses per store. |
| Equipment | The then-current costs for these items. |
| PCI Compliance Vendor Services | The vendor has a 3-year service fee of $75/mo/store. Termination fees apply. |
| Digital Video and Radio Services | Vendor’s then current ongoing fee. |
| Retail Direct Shop | $10 service fee/transaction deducted from commissions for all transactions |
| Gift Card Program | Vendor’s current ongoing fee. |
| Rewards Program | Vendor’s current fee. |
| Chatterspot | Vendor’s current ongoing fee. |
| Listen360 | Vendor’s then current ongoing fee. |
| ReBiz | Franchisees must install a traffic counting monitoring and reporting system. |
| Backpacks | Currently, the fee is between $8 and $9 per unit. |
| New Franchisee Training Fee | The then-current fee for additional attendees |
| Additional Training | The applicable fee for individualized training |
| Ongoing Product Inventory Purchases | Varies |
| Insurance Procurement Fee | The cost for the franchisor’s coverage. |
| Cleaning Costs | Cost of cleaning services. |
| Customer Service Charges | Varies |
| Step-in Rights Exercise | Will not exceed 10% of gross revenue; franchisees will also indemnify the franchisor. |
| Reserve for Charge-Backs | An amount based on historical data |
| Provider Allowances | The amount of provider charge-backs for signs and store build out allowance. |
| Intellectual Property Infringement Liquidated Damages | $1,000/day |
| Removal Costs | The franchisor’s costs. |
| Marketing Development Funds Termination Fees | Franchisees will repay any marketing development funds they received. |
| Non-Competition and Non-Disclosure Damages and Costs | $100,000 for each violation plus the franchisor’s attorneys’ fees and costs for enforcement. |
| Indemnification | Amount of loss or damages plus costs. |
| Cure of Lease Defaults and Reletting Expenses | Amount the franchisor must pay to cure the franchisee’s defaults, plus additional costs. |
| Attorneys’ Fees | Varies. |
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