Ubreakifix Franchise in 2024: Costs, Fee & FDD
Considering investing in Ubreakifix? Discover the key insights into this rapidly growing tech repair franchise, including costs, earnings potential, and the pros and cons of ownership. Get the full breakdown to make an informed decision.
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Ubreakifix, founded in 2009 by Justin Wetherill, David Reiff, and Eddie Trujillo, has made a name for itself in the rapidly growing electronic repair industry. The founders recognized a significant gap in the market—affordable and reliable tech repair services—and set out to fill it. What started as a solution to a personal problem (Justin’s broken iPhone) quickly evolved into a successful business model. Ubreakifix has since become a leading player in the industry, offering a much-needed service in our tech-dependent world.
At its core, Ubreakifix specializes in repairing smartphones, tablets, computers, and gaming consoles, among other electronic devices. Whether it’s a shattered screen, water damage, or a battery that won’t hold a charge, Ubreakifix has become the go-to solution for tech emergencies. Their services are not just limited to repairs; they also offer device protection plans and sell certified pre-owned devices. The core customer base includes tech-savvy individuals, students, professionals, and anyone who depends heavily on their electronic devices for daily activities.
Ubreakifix’s success is evident in its scale and scope. The franchise has grown to over 700 locations across the United States, Canada, and the Caribbean, and it continues to expand. With such a broad footprint, Ubreakifix serves thousands of customers daily, providing quick and dependable service that keeps people connected. Their wide reach and consistent service have solidified their reputation as a trusted brand in the tech repair industry.
One of the key strengths of Ubreakifix is its robust franchise support system. Franchisees benefit from comprehensive training programs that cover everything from technical repair skills to business management and customer service. Additionally, Ubreakifix provides ongoing support in marketing, operations, and technology, ensuring that franchisees have the tools they need to succeed. The franchise also emphasizes community involvement and customer satisfaction, which are central to its business philosophy. This strong support network and commitment to quality make Ubreakifix an appealing choice for prospective franchisees looking to enter the tech repair industry.
Ubreakifix Franchise Insights
- Low Failure Rate: The franchise boasts a notably low failure rate of just 4% in the past year and 7% over the past three years, which is well below the industry median of 14% over three years. This indicates a stable business model with a higher likelihood of success.
- Investment Range: The initial investment for a Ubreakifix franchise ranges from $151,000 to $447,000. This relatively accessible investment range makes it an attractive option for entrepreneurs looking to enter the tech repair industry.
- Extensive U.S. Presence: With 721 total U.S. locations, including 557 franchised units and 164 corporate units, Ubreakifix has a strong and growing presence across the country, offering significant brand recognition and market penetration.
Ubreakifix Franchise Key indicators
Growth YOY (%)
26%
vs industry 0%
Total U.S. Franchised Units
557
3-Year Failure Rate
7%
vs industry 14%
Sales-to-Investment ratio
1.8:1
How much does it cost to open a Ubreakifix franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Ubreakifix franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Ubreakifix franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Ubreakifix below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $25,000 | $40,000 |
| Initial Training Fee | $0 | $12,500 |
| Initial Inventory of Parts and Accessories | $7,000 | $57,000 |
| Initial Equipment, Tools, Supplies, and POS Hardware | $9,650 | $22,000 |
| Furniture and Fixtures | $15,000 | $30,000 |
| Interior Signage | $1,000 | $4,000 |
| External Signage | $5,000 | $30,000 |
| Wages, Travel, and Living Expenses During Training | $15,000 | $23,000 |
| Wages, Travel, and Living Expenses During Site Review | $0 | $1,000 |
| Legal and Accounting | $1,500 | $11,000 |
| Business Licenses and Permits | $700 | $1,500 |
| First 3 Months Marketing | $0 | $8,000 |
| Insurance | $3,000 | $7,000 |
| Store Rent – 3 Months | $0 | $20,000 |
| Mobile Unit Lease Payments – 3 Months | $0 | $3,150 |
| Store Security Deposits | $0 | $15,000 |
| Construction and Leasehold Improvements | $50,000 | $125,000 |
| Additional Funds – 3 Months | $18,500 | $37,000 |
| Total Estimated Initial Investment | $151,350 | $447,150 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Ubreakifix franchise, the required capital involves both the initial investment costs and a net worth requirement set by Ubreakifix. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $151,000 to $447,000. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Franchisors generally require potential franchisees to have around $50,000 to $100,000 in liquid assets to ensure they have the necessary cash flow to manage the business.
- Net Worth A general estimate for net worth requirements in this industry might range from $200,000 to $500,000, ensuring the franchisee has sufficient financial backing to support the business long-term.
How much does a Ubreakifix franchise owner make?
Calculating the salary of a Ubreakifix franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Ubreakifix franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Ubreakifix Revenue & Gross Sales
Based on most recent analysis, Ubreakifix franchises have a median gross sales of $526,994, reflecting a general increase. This strong financial performance underscores the brand’s robust consumer demand and potential for significant revenue generation.
Which key factors impact the average revenue performance of Ubreakifix franchisees?
The performance of U.S. franchisee median gross sales for Ubreakifix over the past year can likely be attributed to several key factors. First, the continued reliance on electronic devices for work, education, and communication has driven consistent demand for repair services, especially as more people opted to repair rather than replace expensive gadgets. Additionally, the brand’s expanding footprint, with over 700 locations, has increased its visibility and market reach, contributing to higher sales. Moreover, Ubreakifix’s strong reputation for quality service and customer satisfaction likely encouraged repeat business and word-of-mouth referrals, further boosting sales. Lastly, strategic marketing efforts and partnerships with companies like Google and Samsung have solidified Ubreakifix’s position as a trusted provider, likely contributing to increased sales figures year over year.
Ubreakifix Franchise Operational Costs
When opening a Ubreakifix franchise, several key ongoing operational costs are specific to this type of business that you’ll need to consider:
- Employee Salaries and Benefits Staffing is a significant cost, as you’ll need skilled technicians to handle repairs, as well as customer service personnel. Offering competitive wages and benefits is crucial to retaining quality staff.
- Inventory Costs Regularly replenishing parts and supplies for various devices is an ongoing expense. This includes screens, batteries, and other components needed for repairs.
- Lease and Utilities Renting a retail space in a high-traffic area is essential for attracting customers, and the associated utilities (electricity, water, internet) are recurring costs.
- Equipment Maintenance The repair equipment and diagnostic tools require regular maintenance and occasional upgrades to ensure they are functioning optimally and meet the latest technology standards.
- Marketing and Local Advertising While there may be a national marketing fund, local advertising, including digital marketing, community events, and promotions, will be necessary to drive traffic to your specific location.
- Technology and Software Licensing Managing operations smoothly often requires investing in point-of-sale systems, inventory management software, and other tech tools that incur ongoing subscription fees.
These are the primary operational costs you’ll need to budget for as part of your ongoing expenses when running a Ubreakifix franchise.
Ubreakifix Franchise Fees
When considering a Ubreakifix franchise, it’s crucial to be aware of the ongoing fees that will impact your operational budget. Here are the relevant ongoing fees you should take into account:
- Continuing Royalty Franchisees are required to pay 7% of non-recommerce revenue and 4% of recommerce revenue as an ongoing royalty fee. This fee supports the overall brand and provides access to the franchisor’s continued support and resources.
- Advertising Fee Ubreakifix may establish an advertising fund, and when they do, you’ll be required to contribute up to 2% of your gross sales to this fund. This contribution helps support national and regional marketing efforts that benefit the entire franchise network.
- Additional Fees There might be other fees associated with software licensing, additional training, or upgrades that are necessary for maintaining the franchise’s standards.
Understanding these fees is essential for planning and managing your franchise’s finances effectively. Make sure to factor them into your business plan to ensure long-term success.
Ubreakifix Franchise Earnings
Based on the most recent data, the median gross sales for a Ubreakifix franchise are approximately $526,994. For an owner-operator, this level of sales typically translates to earnings of around $63,239. These earnings reflect the potential income after accounting for the costs of running the business, including staffing, inventory, and other operational expenses.
Comparatively with the previous years, this indicates a modest yet steady growth in both sales and earnings, suggesting a healthy business model with potential for consistent income. As a potential franchisee, these figures can help you estimate your expected returns and plan your finances accordingly.
How to Open a Ubreakifix Franchise
Becoming a Ubreakifix franchisee involves a structured process designed to ensure that both the franchisor and the prospective franchisee are a good fit for each other. Here’s an overview of the steps involved:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Preliminary Meeting After your inquiry is reviewed, you’ll typically be invited to a preliminary meeting or phone call with a franchise representative. This conversation helps both parties understand expectations and clarify any initial questions you might have about the business model, financial requirements, and the overall process.
- Application and Financial Review If both parties are still interested, you’ll be asked to complete a formal franchise application. This includes providing detailed financial information to ensure you meet the necessary requirements, such as liquid assets and net worth. Ubreakifix will also review your business background and experience to assess your suitability as a franchisee.
- Discovery Day Ubreakifix may invite you to a Discovery Day, where you visit the corporate headquarters. This is an opportunity to meet the leadership team, learn more about the business operations, and see the support systems in place. It’s also a chance for Ubreakifix to evaluate your commitment and fit for their brand.
- Franchise Agreement Signing If you decide to move forward, the next step is signing the Franchise Agreement. This legally binds you to the terms outlined in the FDD and formally grants you the rights to operate a Ubreakifix franchise.
- Securing Financing With the Franchise Agreement in hand, you’ll need to secure financing if necessary. This might involve working with banks, investors, or using personal savings to cover the initial investment, which includes the franchise fee, equipment, leasehold improvements, and other startup costs.
- Site Selection and Lease Negotiation Ubreakifix will assist you in selecting a suitable location for your franchise, based on factors like visibility, traffic, and market demand. Once a location is identified, you’ll negotiate and secure a lease.
- Training and Preparation Before opening, you’ll undergo comprehensive training at the Ubreakifix headquarters. This training covers everything from technical repair skills to business management, marketing, and customer service. You’ll also prepare your location, ensuring it meets the franchise’s design and operational standards.
- Grand Opening Once your location is ready and you’ve completed training, you’ll proceed to the grand opening of your Ubreakifix franchise. The franchisor typically provides support during this phase, helping you with marketing, promotions, and ensuring a smooth launch.
- Ongoing Operations After the grand opening, you’ll transition to the ongoing operations phase, where you’ll manage the day-to-day business activities. Ubreakifix provides continued support in marketing, operations, and training to help ensure your franchise’s success.
Pros & Cons
Pros
Strong Market Demand: With the increasing reliance on electronic devices, there’s a steady demand for repair services, making Ubreakifix a recession-resistant business.
Proven Business Model: Ubreakifix has a well-established and scalable business model, as evidenced by its significant growth and large network of over 700 locations across the U.S., Canada, and the Caribbean.
Brand Partnerships: Ubreakifix has strong partnerships with major tech brands like Google and Samsung, providing credibility and attracting a steady stream of customers.
Cons
Intense Competition: The tech repair industry is competitive, with numerous small local shops and other franchise brands vying for market share.
Not Eligible for E-2 Visa: If you’re an international investor, it’s important to note that Ubreakifix is not eligible for the E-2 visa, which could limit your ability to use the franchise as a pathway to U.S. residency.
Operational Complexity: Managing a tech repair business requires a good grasp of technical skills and operational efficiency, which may be challenging if you lack experience in this field.
