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Cell Phone Repair Franchise ProfileComputer & Internet Franchises > Computer Repair |
What Are the Initial Investment Requirements for a Cell Phone Repair Franchise?
To start a Cell Phone Repair franchise, you will need to consider the initial investment, which ranges from $39,900 to $279,400. This includes a franchise fee of $19,900. Additionally, you should have cash available between $76,750 and $279,400, and a net worth requirement of $100,000 to $2,000,000 to ensure you can support the business as it gets off the ground.
What Are the Financial Performance Metrics for a Cell Phone Repair Franchise?
The average annual revenue per unit for a Cell Phone Repair franchise is impressive, standing at $1,052,671. However, revenue can vary significantly, with the lowest annual revenue at $15,240 and the highest at $1,624,424. The breakeven time is around 16 months, while you can expect to see a payback on your investment within 12 months, making it a potentially lucrative opportunity for franchisees.
What Ongoing Fees Should You Expect as a Cell Phone Repair Franchisee?
As a franchisee, you will be responsible for ongoing fees, including a royalty fee of 5.8% of your revenue and a marketing fee of 2%. These fees contribute to the overall support and brand recognition that the franchise provides, helping you to attract and retain customers. Understanding these costs is crucial for budgeting and ensuring the long-term profitability of your unit.
What Are the Average Operating Expenses for a Cell Phone Repair Franchise?
Operating expenses for a Cell Phone Repair franchise average around $62,400 annually. Key costs include rent, which is approximately $12,000, insurance at $8,000, and administrative salaries totaling $30,000. It's important to factor in these expenses when evaluating the overall financial health of the franchise, as they can significantly impact your bottom line.
Cell Phone Repair Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Cell Phone Repair Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 470 | 430 | 424 |
| Net Change YoY | -40 | -6 | |
| Franchised Units | 469 | 429 | 423 |
| Net Change YoY | -40 | -6 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Initial Investment
The cell phone repair franchise offers a low initial investment starting at $39,900, with a high end of $279,400. This range allows aspiring franchisees to assess their financial capacity and choose an investment level that suits their budget while entering a growing industry focused on technology repair.
Franchise Fees
Franchisees are required to pay an initial franchise fee of $19,900. Additionally, ongoing royalty and marketing fees are set at 5.8% and 2%, respectively. These fees contribute to the support and resources provided by the franchisor, ensuring franchisees have the tools they need to succeed.
Financial Performance
The average annual revenue per unit for the franchise is reported at $1,052,671, with a median revenue also at this figure. This impressive performance highlights the potential profitability of investing in a cell phone repair franchise, although individual results may vary based on location and management.
Breakeven and Payback
Franchisees can expect a breakeven period of approximately 16 months, with a payback on their investment occurring around 12 months. This timeline is crucial for prospective franchisees to understand, as it indicates the speed at which they can start seeing returns on their investment.
Franchise Growth
The franchise has seen a slight decline in the number of franchised units over the last three years, from 469 in 2021 to 423 in 2023. Despite this decrease, the brand maintains a robust presence in the market, with a single corporate unit that serves as a model for franchise operations.
Operating Expenses
Average annual operating expenses for a franchise unit total approximately $62,400. Key costs include rent, insurance, utilities, and administrative salaries. Understanding these expenses is vital for franchisees to effectively manage their financial performance and optimize profitability in their operations.
Frequently Asked Questions
The total initial investment for a Cell Phone Repair franchise ranges from $39,900 to $279,400, which includes the franchise fee and other startup costs.