|
ZAGG Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a ZAGG Franchise?
To open a ZAGG franchise, the initial investment ranges from $49,000 to $109,000. This includes a franchise fee of $15,000. Potential franchisees should also have liquid cash available between $10,000 and $35,000 and a net worth of $150,000 to $500,000. Understanding these financial commitments is crucial for aspiring franchise owners to ensure they are adequately prepared for the investment.
What Are the Ongoing Fees for ZAGG Franchisees?
ZAGG franchisees are required to pay a royalty fee of 5% on their gross sales, along with a marketing fee of 2.5%. These ongoing fees are essential to consider as they impact the overall profitability of the franchise. Franchisees should plan accordingly to ensure that they can cover these expenses while maintaining a healthy profit margin.
What Is the Potential Revenue and Profitability for a ZAGG Franchise?
On average, ZAGG franchise units generate annual revenues of approximately $303,569, with a median revenue of $248,000. The highest revenue recorded per unit is an impressive $1,120,140, showcasing the potential for profitability. With a breakeven timeframe of about 12 months and an investment payback period of around 24 months, ZAGG presents a compelling opportunity for those looking to enter the franchise market.
What Are the Operational Costs for Running a ZAGG Franchise?
Running a ZAGG franchise involves various operational costs, including rent, utilities, marketing, and salaries. Annual rent can range from $10,000 to $30,000, while utilities are around $1,920. Marketing and advertising expenses may vary between $6,000 and $12,000. Total running expenses can range from approximately $52,324 to $107,324 annually. Understanding these costs is vital for effective financial planning and operational management.
ZAGG 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:
ZAGG Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 97 | 109 | 104 |
| Net Change YoY | 12 | -5 | |
| Franchised Units | 92 | 105 | 100 |
| Net Change YoY | 13 | -5 | |
| Corporate Units | 5 | 4 | 4 |
| Net Change YoY | -1 | 0 |
Initial Investment
The ZAGG franchise offers a range of initial investment options, with a low end of $49,000 and a high end of $109,000. This investment includes a franchise fee of $15,000, allowing aspiring entrepreneurs to enter the mobile accessories market with a manageable financial commitment.
Financial Performance
Franchisees can expect an average annual revenue of $303,569 per unit, with a median revenue of $248,000. The revenue range varies significantly, with the lowest annual revenue reported at $81,000 and the highest at $1,120,140, showcasing the potential for profitability within the franchise.
Royalty and Marketing Fees
ZAGG requires a royalty fee of 5% on gross sales, along with a marketing fee of 2.5%. These fees contribute to the overall support and brand presence that ZAGG provides to its franchisees, ensuring a strong marketing strategy and operational guidance.
Breakeven and Payback Period
Franchisees typically reach breakeven within 12 months of operation, with an investment payback period of around 24 months. This timeline indicates a relatively quick return on investment, making ZAGG an attractive option for those looking to enter the franchise space.
Corporate and Franchised Units
As of 2022, ZAGG operates a total of 104 units, with 100 franchised locations and 4 corporate units. This growth reflects a steady increase in franchised units from previous years, indicating a strong demand for ZAGG's products and services in the market.
Required Financial Qualifications
To qualify for a ZAGG franchise, candidates must have a net worth ranging from $150,000 to $500,000, with liquid cash requirements between $10,000 and $35,000. These financial criteria ensure that franchisees are well-prepared to manage their business effectively and contribute to the brand's success.
Frequently Asked Questions
The initial investment for a ZAGG franchise ranges from $49,000 to $109,000, including a franchise fee of $15,000.