In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Wireless Zone franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Wireless Zone franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Wireless Zone outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Wireless Zone franchise opportunity

Section V – Presentation and analysis of Wireless Zone’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average and median number of Postpay activations, upgrades, and transactions (Postpay activations and upgrades combined) per store per month for the top 10%, bottom 10%, and all 438 Wireless Zone franchise stores that were open during the entire calendar year 2023

• 2023 average, high, and low gross revenue, gross profit, gross profit margin, and net activations and upgrades, by quintile, for the 438 Wireless Zone franchise stores that were open during the entire calendar year 2023

Section VI – Key ratios, comparables, computations, and analyses for the Wireless Zone franchise opportunity (exclusive content for Platinum subscribers)

Section I – Wireless Zone Franchise Costs

• Initial Franchise Fee:  $1,000 to $25,000
• Real Estate/Rent:  not included
• Real Estate Improvements:  $20,000 to $60,000
• Business Equipment and Supplies:  $10,000 to $16,000
• Computer Equipment, Signs, Fixtures, Kiosks, and Displays:  $73,500 to $161,000
• Miscellaneous Opening Costs:  $2,500 to $15,500
• Initial Product Inventory:  $50,000 to $75,000
• Initial Marketing Program:  $5,000
• Sales Tax, Use Tax, Other Similar Tax, Freight and Delivery Charges:  $3,000 to $38,000
• Additional Funds for 3 Months:  $25,000 to $50,000
• Total Estimated Wireless Zone Franchise Costs (excluding real estate costs):  $190,000 to $445,500

Section II – Wireless Zone’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $1,000 to $25,000
• Royalties:  not more than 22% of the Gross Profit you earn through sales at your Store

Section III – Number of Franchised and Company-Owned Wireless Zone Outlets

Franchised

2021

• Outlets at the Start of the Year:  412
• Outlets at the End of the Year:  428
• Net Change:  +16

2022

• Outlets at the Start of the Year:  428
• Outlets at the End of the Year:  447
• Net Change:  +19

2023

• Outlets at the Start of the Year:  447
• Outlets at the End of the Year:  720
• Net Change:  +273

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Wireless Zone Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Wireless Zone Franchise (Item 19, 2024 FDD)

• Wireless Zone franchisees sell and service wireless telephones, wireless data, satellite communications, personal communications devices, and other forms of wireless, wireline, and Internet-based communication devices, services, and accessories, and entertainment and security products and services.

• Below are tables containing financial performance representations based on the Provider’s Postpay activations and upgrades data for all franchised Stores for the calendar year 2023, as provided to Wireless Zone by its Provider. The Provider reports Postpay activations and upgrades data to Wireless Zone using a reporting system applicable to all of the Stores. Wireless Zone has not audited these figures.

Part 1 – Number of Postpay Activation and Upgrade Transactions

• The average number of Postpay activation and upgrade transactions in the tables are net of deactivations.

• Wireless Zone has omitted the first month of data from all new franchise locations in 2023 that were open less than half the month during the first month.

• Wireless Zone offers substantially the same services to all the Stores whose data is reported in the tables below as it does to new franchisees. New Stores will offer substantially the same products and services to consumers as were offered by these Stores.

• The tables below report data for all 438 Stores that were open and operating as franchised Stores during the entire calendar year 2023. Wireless Zone excluded the results of 282 Stores from the charts below because they were not open and operating for the entire 12-month period ended December 31, 2023. Wireless Zone excluded 9 of these Stores as they permanently closed during this time period. 1 of these Stores was open for less than 12 months before closing.

• The rankings of the top 10% and bottom 10% of these 438 Stores were based on the total number of transactions (Postpay activations and upgrades combined) per Store per month.

Franchise Stores Open 12 Full Months in 2023 (438 Stores)

• Average Number of Postpay Activations Per Store Per Month:  51
• Median Number of Postpay Activations Per Store Per Month:  44
• Average Number of Upgrades Per Store Per Month:  92
• Median Number of Upgrades Per Store Per Month:  82
• Average Number of Transactions Per Store Per Month (Postpay Activations and Upgrades Combined):  143
• Median Number of Transactions Per Store Per Month (Postpay Activations and Upgrades Combined):  124

Top 10% of Franchise Stores Open 12 Full Months in 2023 (44 Stores)

• Average Number of Postpay Activations Per Store Per Month:  118
• Median Number of Postpay Activations Per Store Per Month:  113
• Average Number of Upgrades Per Store Per Month:  205
• Median Number of Upgrades Per Store Per Month:  190
• Average Number of Transactions Per Store Per Month (Postpay Activations and Upgrades Combined):  315
• Median Number of Transactions Per Store Per Month (Postpay Activations and Upgrades Combined):  311

Bottom 10% of Franchise Stores Open 12 Full Months in 2023 (44 Stores)

• Average Number of Postpay Activations Per Store Per Month:  17
• Median Number of Postpay Activations Per Store Per Month:  18
• Average Number of Upgrades Per Store Per Month:  30
• Median Number of Upgrades Per Store Per Month:  30
• Average Number of Transactions Per Store Per Month (Postpay Activations and Upgrades Combined):  52
• Median Number of Transactions Per Store Per Month (Postpay Activations and Upgrades Combined):  58

Part 2 – Gross Revenue and Gross Profit Information

• As used in the charts below, the following terms are defined:

• “Allowable Cost” means (i) cost attributable to Wireless Zone-approved devices, products, accessories, goods, and services sold at the Store, as set forth in the WZ LLC Price Sheet; (ii) Fees; (iii) Chargebacks: and (iv) Non-Return Chargebacks.

• The cost attributable to any device, product, accessory, good, or service will be determined based on the WZ LLC Price Sheet in effect at the time of sale. Allowable Costs do not include administrative costs, sales costs, overhead, business costs, corporate costs, labor, depreciation, inventory, rent, taxes, or any other kind of operational, business, administrative, or regulatory cost or expense.

• “Gross Profit” means, for any calendar month, the Gross Revenue of the Store less Allowable Cost.

• “Gross Revenue” means all revenue received from or in connection with the Store, including but not limited to the following: (i) sale of devices, products, accessories, goods, and services; (ii) commissions; (iii) 50% of residuals; (iv) device trade-ins; (v) customer fees; and (vi) other payments from the Provider or any supplier or vendor to WZ LLC that may be distributed to a store owner.

• Gross Revenue does not include: (i) incentives or other short-term sales program compensation funded by WZ LLC; (ii) market development funds; and (iii) co-op advertising funds.

Quintile 1 (87 Franchised Stores)

• Average Gross Revenue:  $3,354,277
• Highest Gross Revenue:  $6,068,509
• Lowest Gross Revenue:  $2,088,477
• Average Gross Profit:  $987,957
• Highest Gross Profit:  $1,525,513
• Lowest Gross Profit:  $724,349
• Weighted Average Gross Margin Percentage:  30%
• Average Net Activations and Upgrades:  3,152

Quintile 2 (87 Franchised Stores)

• Average Gross Revenue:  $2,165,538
• Highest Gross Revenue:  $2,938,506
• Lowest Gross Revenue:  $1,408,394
• Average Gross Profit:  $612,292
• Highest Gross Profit:  $718,597
• Lowest Gross Profit:  $540,028
• Weighted Average Gross Margin Percentage:  29%
• Average Net Activations and Upgrades:  2,004

Quintile 3 (87 Franchised Stores)

• Average Gross Revenue:  $1,646,911
• Highest Gross Revenue:  $2,161,588
• Lowest Gross Revenue:  $1,257,846
• Average Gross Profit:  $471,492
• Highest Gross Profit:  $539,423
• Lowest Gross Profit:  $409,950
• Weighted Average Gross Margin Percentage:  29%
• Average Net Activations and Upgrades:  1,516

Quintile 4 (88 Franchised Stores)

• Average Gross Revenue:  $1,259,702
• Highest Gross Revenue:  $1,738,320
• Lowest Gross Revenue:  $964,889
• Average Gross Profit:  $356,501
• Highest Gross Profit:  $409,175
• Lowest Gross Profit:  $300,326
• Weighted Average Gross Margin Percentage:  29%
• Average Net Activations and Upgrades:  1,174

Quintile 5 (89 Franchised Stores)

• Average Gross Revenue:  $843,146
• Highest Gross Revenue:  $1,220,831
• Lowest Gross Revenue:  $354,049
• Average Gross Profit:  $235,710
• Highest Gross Profit:  $299,280
• Lowest Gross Profit:  $103,485
• Weighted Average Gross Margin Percentage:  28%
• Average Net Activations and Upgrades:  753

Median (438 Franchised Stores)

• Median Gross Revenue:  $1,632,830
• Median Gross Profit:  $474,937
• Weighted Median Gross Margin Percentage:  29%
• Median Net Activations and Upgrades:  1,492

Average (438 Franchised Stores) – Calculated by Franchise Chatter

• Average Gross Revenue:  $1,847,943
• Average Gross Profit:  $531,031
• Weighted Average Gross Margin Percentage:  29%
• Average Net Activations and Upgrades:  1,714

• The quintiles are ranged based on Gross Profit. The first quintile reflects the 20% of those Stores that had the highest Gross Profit, while the bottom quintile represents the 20% that had the lowest Gross Profit.

• These financial performance representation figures do not reflect the costs of sales, operating expenses, freight expenses, inventory loss expense, royalties, or other costs or expenses that must be deducted from the gross revenue or gross profit figures to obtain your net income or profit.

• The data reported in the table above are averages and could vary greatly by geographic region, the length of time the Store has been in business, sales volume, sales mix, your particular Provider, the length of time that Provider has been operating in the area, the terms of contract with the Provider, the service plan selected by the Store customer, and customer usage.

• Some Stores have earned these amounts. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Wireless Zone Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️