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Retail

Wireless Zone Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$201,875 – $532,600

Franchise Fee

$25,000

Royalty Rate

22.0%

Initial Investment Range

Low: $201,875 High: $532,600

The total initial investment to open a Wireless Zone franchise ranges from $201,875 to $532,600, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $25,000.

Midpoint estimate: $367,238

Franchise Fee

$25,000

One-time initial fee

The Wireless Zone franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Wireless Zone brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

22.0%

of gross revenue

Ad/Marketing Fund

N/A

Other Ongoing Fees

Fee Type Rate Type Notes
Royalties 22.0 VARIABLE 22% on Gross Profit of $5,000 or less per month, decreasing for each additional $5,000 of Gross Profit, down to 9% on all Gross Profit above $100,000 per calendar month. Incentive programs may allow qualifying franchisees to reduce the royalty rate. Deducted from Commissions and Residuals before payment.
Foundation Contribution 0.25 FIXED Mandatory contribution for philanthropic programs including Foundation support. Due when customer sale is made.
Interest 1.5 PCT Charged on outstanding balance owed unless limited by law. Payable on demand.
Renewal Fee 1000.0 FIXED Due at time of signing new franchise agreement, no later than expiration date of existing agreement.
Holdover Fee 500.0 FIXED Payable if franchisee continues to operate after Franchise Agreement expires, in addition to all other fees. Not credited against renewal fee.
Training No-Show Fee 500.0 VARIABLE Fee range depends on type and duration of training class, meeting, or seminar. Payable if franchisee or employees register but fail to attend.
Transfer Fee 1000.0 FIXED Currently $1,000, not to exceed $5,000. May be reduced by 50% if acquiring multiple Stores at one time. Due on or before date of transfer.
Software License Fees and Point of Sale License 103.0 FIXED Includes up to 6 point of sale licenses. Store's pro rata share of Vendor's program fee is currently 10% of monthly fee or less. Collected on behalf of third-party vendor.
Computer Equipment, Support, Monitoring, Store System and Equipment Management, Security, and PCI Compliance Services (WSS Technology and Support Model) 100.0 FIXED Initial setup cost $7,000-$9,000 depending on Store configuration. Monthly fee dependent upon choice of point-of-sale system installation options.
Digital Video and Radio Services 30.0 VARIABLE Range $20-$40 per month depending on type of services provided. Collected on behalf of third-party vendor.
Retail Direct Ship 10.0 FIXED Service fee deducted from Commissions for all transactions closed by remote call-in customer center. May increase by up to $10 per transaction once each year.
Automated Messaging Platform 40.0 VARIABLE Currently $30-$50 per month per Store. Collected on behalf of third-party vendor.
ReBiz 180.0 FIXED Traffic counting monitoring and reporting system. Installation fee $1,600 per Store. Service fee $180 per month per Store. Collected on behalf of third-party vendor.
Audit N/A VARIABLE Payable if franchisee understates Royalties by 2% or more, or fails to produce business books and records. Due within 10 days of billing.
Bank Charges, Administrative Costs; and Credit Card Fees N/A VARIABLE Administrative fee not to exceed $50 per month or per transaction. Charged for unsuccessful electronic funds transfers, closed operating accounts, returned payments, or credit card payments.
Additional Training N/A VARIABLE Between $1,000 and $10,000 depending on type and duration. Franchisee must reimburse travel, lodging, meals, and additional expenses if applicable. Online training fee will not exceed on-site training fee.
Ongoing Product Inventory Purchases N/A VARIABLE $80,000 to $225,000 per month depending on sales level, customer demand, time of year and delivery schedule. Payment in advance unless payment terms of up to 65 days offered.
Non-Competition and Non-Disclosure Damages and Costs 100000.0 FIXED $100,000 for each violation plus attorneys' fees and costs for enforcement. Payable as liquidated damages, not a penalty.
Intellectual Property Infringement Liquidated Damages 1000.0 FIXED Liquidated damages for continuing to use intellectual property rights following termination or expiration of Franchise Agreement (with holdover exception).
Noncompliance with Provider Compliance Agreement 500.0 VARIABLE Currently $500 per subscriber mobile phone impacted and up to $2,000 per day and up to $1,000 per location per day for breach of Personal Information section.

What You Get

Category

Retail

Franchise Score

70

out of 100

Wireless Zone operates as a mobile device retailer offering wireless products, accessories, and services to consumers. The franchise provides device sales, trade-ins, and wireless plan consultations at convenient retail locations.

Financial Performance (Item 19)

Median Revenue

$1,741,647

per year, per location

Mean Revenue

$1,741,647

per year, per location

Profitability Estimate

Estimated Owner Profit

$-104,499

per year

Profit Margin

-6.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): -3.5 years

Based on midpoint investment of $367,238 and estimated annual owner profit of $-104,499.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

2.3%

Low risk — below industry average

Net Unit Growth

-428 units

From 2022 to 2025

Unit Activity History

Year Start Opened Closed Transfers End
2022 428 +29 -11 446
2023 446 +283 -9 720
2024 720 +42 -17 745
2025

Is a Wireless Zone Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Wireless Zone franchise opportunity:

Overall Score

70/100

Strong opportunity

Est. Payback Period

N/A

Risk Level

Low

2.3% annual closure rate

Wireless Zone scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,741,647 , prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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