Zagg is a retail store offering protective accessories and repair services for electronic devices. The franchise sells phone covers, screen protectors, and other products while providing repair services for smartphones and electronics.
Key Insights
- Zagg began with a focus on protecting and enhancing mobile devices, quickly expanding its product offerings to include audio accessories, power solutions, and screen protection, evolving into a comprehensive brand for device personalization and utility. The business has developed a broad customer base through continuous innovation and a commitment to quality.
- The franchise operates a multi-channel sales strategy, encompassing retail partnerships, direct-to-consumer online sales, and a growing presence in airport and high-traffic retail locations. This approach ensures wide accessibility and caters to diverse consumer purchasing habits.
- Zagg operates within the rapidly growing mobile accessory market, a sector driven by the constant introduction of new electronic devices and consumer demand for personalization, protection, and enhanced functionality. The industry is characterized by evolving technology and sustained consumer interest.
Franchise Fee and Costs to Open
Exploring the financial picture of Zagg gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $49,000 - $109,000, along with a franchise fee of $5,000 - $15,000.
Financial Performance and Revenue
Yearly gross sales of $296,188 and estimated earnings of $29,619 - $35,543 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 2.9-4.9 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Zagg provides comprehensive training for new franchisees. Initial training spans two weeks and is conducted at Zagg's corporate headquarters. This program offers instruction on operational procedures and brand standards. Zagg also provides access to ongoing resources to support franchise success.
Legal Considerations
Legal considerations for a Zagg franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
Operating a franchise in the retail sector, particularly one with a product focus akin to Zagg's, presents several considerations. Navigating local market competition requires understanding existing players and differentiating offerings. The operational complexity of managing inventory, staff, and customer service for a diverse product range is a constant factor. Reliance on specific supply chains for accessories and protection products means ensuring consistent product availability and quality from franchisor-approved vendors.
Franchise Datasheet
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