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Description
Investment Icon

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.

Fees Icon

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.

Revenue Icon

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.

Breakeven Icon

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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$150,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$15,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2.5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$49,000 - $109,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$10,000 - $35,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$303,569
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$248,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,120,140
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$81,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Retail Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Retail
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Randy Hales
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

910 W. Legacy Center Way, Ste. 500 Midvale, UT 84047
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2007
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

ZAGG Inc.

ZAGG Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

104
The number of locations owned by independent franchisees.

Franchised Units i

100
The number of locations owned and run by the franchisor.

Corporate Units i

4
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
Investment About

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.

Potential About

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.

Metrics About

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.

Fees About

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.

Breakeven About

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.

Units About

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.