Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
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  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
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Franchise Costs: Detailed Estimates of Wireless Zone Franchise Costs (2015 FDD)

by Franchise Chatter on June 29, 2014

in Franchise Costs, Retail Franchise



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Wireless Zone 1

This post was updated on July 9, 2015 to reflect information from Wireless Zone’s 2015 FDD (Item 7).

Detailed Estimates of Wireless Zone Franchise Costs Based on Item 7 (Estimated Initial Investment) of Wireless Zone’s 2015 Franchise Disclosure Document

1.  Initial Franchise Fee:  $1,000 to $30,000

  • The franchisor may finance up to 50% (for a new franchisee entering the System) or 100% (for an existing franchisee) of the initial franchise fee for 12 months, subject to approval of your credit.

2.  Travel and Living Expenses While Training:  $1,500 to $6,000 per person

3.  Real Estate/Rent:  Not Included

  • Typical locations will include high traffic plazas, enclosed malls (where the location will be a kiosk, in-line Store or cart), and strip mall locations.
  • The franchisor estimates rent for a kiosk or a Store location will be between $13,200 and $70,000 per year, depending upon size, condition, and location of the leased premises, the condition of leasehold improvements, and the prevailing rents in the area.
  • The typical Store has between 1,100 and 2,000 square feet of space.
  • These rent figures for a Store are based on estimates of between $12 and $35 per square foot, plus common area charges, insurance, and taxes, but might be higher in communities and malls which typically command higher rent.
  • The table does not include any lease deposit or rent payable to the landlord.

4.  Real Estate Improvements:  $10,000 to $30,000

  • Improvements may include completion of interior walls, painting, and installation of flooring and doors.

5.  Business Equipment and Supplies:  $9,000 to $15,000

  • Business equipment and supplies may include fax and copy machines, telephones, and furniture.

6.  Computer Equipment:  $5,000 to $10,000

  • You must purchase 1 or more computer Point-of-Sale workstation setups to use in the operation of your Store.
  • The franchisor may offer to finance the cost of the POS workstation setup, and signs, fixtures, displays, and if applicable, a kiosk, up to a maximum loan amount of $20,000 for all items combined, for a varying term of 1 to 3 years, depending on the amount of the note.

7.  Signs, Fixtures, Kiosks, and Displays:  $15,000 to $95,000

  • In certain geographic areas, a Provider may reimburse the franchisor for all or a portion of the cost of these items (other than fixtures), and the franchisor may pass along to you all or a portion of the reimbursement.
  • Displays may cost you up to $60,000, and signs may cost up to $35,000 each, depending on the programs offered by a Provider, not including shipping, which will vary.
  • The cost of these items for a kiosk location may be less. A free-standing kiosk for a mall or similar location may cost up to $60,000, not including shipping, which will vary.
  • Signs will be the franchisor’s property and/or a Provider’s property, regardless of whether the franchisor or the Provider subsidizes all or a portion of the costs of your signs.
  • The franchisor or a Provider may offer to subsidize all or a portion of your cost (after any subsidies described above) for any signs, fixtures, displays, and if applicable, your kiosk cost.

8.  Miscellaneous Opening Costs:  $2,000 to $13,500

  • The miscellaneous opening costs include security deposits, utility deposits, incorporation expenses and professional fees, telephone systems, furniture, and startup and Internet-based training fees for the Point-of-Sale software.

9.  Initial Product Inventory:  $50,000 to $100,000

  • Payment for your initial product inventory may be due in full before delivery.

10.  Initial Marketing Program:  $5,000

  • The Initial Marketing Program expenses are usually incurred after your Store begins operation. The franchisor may offer to finance the $5,000 minimum requirement.

11.  Sales Tax, Use Tax, Other Similar Tax, Freight and Delivery Charges:  $3,000 to $38,000

  • You are responsible for the payment of any sales tax, use tax, gross receipts tax, excise tax, or other similar tax or freight and delivery charges associated with the franchise. These costs vary from state to state.

12.  Additional Funds for 3 Months:  $25,000 to $50,000

  • This is an estimate for additional funds you will require during your first 3 months of operation, which includes your initial start-up expenses, supplies, certain inventory (including upfront fixed payments for wireless devices), and payroll costs, but does not include insurance or any security deposit or rent you pay to the landlord.

13.  Total (excluding real estate costs):  $126,500 to $392,500

  • The franchisor has prepared these estimates based on over 25 years of experience operating and/or franchising Stores.



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