In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the uBreakiFix franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a uBreakiFix franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a uBreakiFix franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned uBreakiFix outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of uBreakiFix’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- average, median, highest, and lowest total revenue, cost of goods sold, and gross profit for uBreakiFix franchisee-operated stores that were 1 year or older over the six-year period from January 1, 2014 through December 31, 2019 (1st, 2nd, 3rd year of operations)
- average, median, highest, and lowest total revenue, cost of goods sold, and gross profit for the top 25 uBreakiFix franchisee-operated stores that were 1 year or older over the six-year period from January 1, 2014 through December 31, 2019 (1st, 2nd, 3rd year of operations)
- average, median, highest, and lowest total revenue, cost of goods sold, and gross profit for the bottom 25 uBreakiFix franchisee-operated stores that were 1 year or older over the six-year period from January 1, 2014 through December 31, 2019 (1st, 2nd, 3rd year of operations)
Section I – Background Information
18 Things You Need to Know About the uBreakiFix Franchise
Finds a Sweet Spot During Ongoing COVID-19 Crisis
1. In late July 2020, uBreakiFix revealed that the company was already well-positioned to navigate the COVID-19 outbreak and has actually excelled as demand for tech support and repair has grown. A point illustrated by the fact that uBreakiFix reported its best sales weeks of 2020 in just the past several weeks while many states were still closed or only partially open. “I think that’s a huge testament to the demand for our services and the ability to adapt quickly to changing circumstances,” said Justin Wetherill, CEO of uBreakiFix.
2. As Covid-19 began spreading around the world this past spring, uBreakiFix was ahead of the curve by offering contactless curbside services, mail-in options, and at-home repairs for a new world characterized by social distancing. The company says its “We Come to You” service is here to stay because of the positive response from customers and the great results for business. Adapting in these ways allows uBreakiFix to continue providing critical tech support and repair to those working remotely, homeschooling, or connecting virtually with friends and loved ones.
3. Wetherill added, “When shelter-in-place orders began, the whole country went virtual – for work, school, entertainment, socializing, and more. As technology became even more critical to keep communities connected, so did our services.”
4. Meanwhile, the brand supported its franchise operators by providing updated public health guidelines on hand washing, cleaning workspaces and high-touch surfaces, wearing gloves when handling devices and wearing mask coverings where required by applicable law, and the sanitation of all devices upon receipt and return.
5. With its unique services and proven business model, uBreakiFix was uniquely positioned to navigate the pandemic and become an even stronger company. This will only continue as demand for tech support and repair continues to grow post-COVID.
Partners with Google to Offer Free Pixel Smartphone Repairs to Those on the Frontlines of the COVID-19 Crisis
6. In late April 2020, uBreakiFix teamed up with Google to offer free Pixel smartphone repairs for first responders and healthcare heroes in the United States, including law enforcement, police officers, emergency medical technicians (EMTs), firefighters, doctors, nurses, pharmacists, and nursing home and hospital staff.
7. An emergency responder or healthcare professional with a Google Pixel smartphone can present his or her ID badge at any of uBreakiFix’s more than 500 participating U.S. locations to receive one free repair, regardless of the device model or type of damage. Common repairs include screen damage, charging port issues, battery replacements, camera issues, speaker issues, and even liquid damage in some cases.
8. Free Pixel phone repairs were available to first responders and healthcare workers in the United States through June 30 or while supplies lasted and were eligible for carry-in or curbside service.
9. According to Eddie Trujillo, vice president of partnerships for uBreakiFix, “At uBreakiFix, we know that ‘together’ is the only way to get through this. We’re grateful to work with our friends at Google to honor those serving on the frontlines of this crisis. We know that a broken smartphone is more than just an inconvenience right now, and it’s our privilege to do what we can to help first responders and healthcare heroes stay connected to what matters most during this time.”
10. Earlier in April, uBreakiFix expanded its repair service model to include contactless curbside service, mail-in availability, and “We Come to You” appointments. These changes allow uBreakiFix to continue providing critical tech support and repair as communities nationwide transitioned to working remotely, homeschooling, connecting virtually with friends and loved ones, entertaining themselves from home, and more.
Ends 2019 with 559 Locations
11. At the end of January 2020, uBreakiFix announced steady growth during the fourth quarter of 2019 with a total of 14 new locations. These Q4 additions brought the brand’s total footprint to 559 stores across North America. From Jan. 1 to Dec. 31, uBreakiFix opened a total of 95 locations, including significant growth in Texas with 11 new stores, Ontario with eight, and Virginia and Illinois each with six. Texas remains one of the brand’s highest volume states with 50 total locations, ranking second to its home state of Florida, which boasts 84 uBreakiFix stores.
12. Justin Wetherill, co-founder and CEO of uBreakiFix, said, “2019 was defined by growing the right way with the right people – those who care about furthering the industry while also creating an exceptional experience for customers. We welcomed many eager franchisees into the system and helped existing owners expand in their territories. We were also acquired by global tech care company Asurion in August and look forward to seeing the impact of our combined forces in 2020 as we amplify our franchise growth, increase corporate support, and elevate the customer experience.”
13. uBreakiFix plans to increase momentum in 2020, projecting 35 store openings during the first quarter. January was off to a strong start with one location already open, plus recognition on Entrepreneur’s annual Franchise 500 list. uBreakiFix ranked No. 21 on the magazine’s 2020 list for outstanding performance in areas including unit growth, financial strength and stability, and brand power.
14. Wetherill added, “We are honored to rank No. 21 on this year’s Franchise 500 list. This award takes several factors into account, but I firmly believe you can boil it down to one simple thing: doing right by our customers, franchisees, and team members. Prioritizing people is the first step to creating a brand that people want to be a part of.”
15. uBreakiFix was founded in 2009 by Justin Wetherill and his friends David Reiff and Eddie Trujillo in Orlando, Florida. Wetherill came up with the idea for a phone repair service business after he dropped his brand new iPhone 3G and shattered the screen.
16. As an avid tech geek, Wetherill figured he could repair the phone himself, but ended up biting off more than he could chew. Wetherill turned to his friend David Reiff for help and they both realized that there was a need for high-quality smartphone repairs. After working out the kinks and repairing Wetherill’s phone, he and Reiff started offering iPhone glass repairs at a flat rate of $79.99 on eBay.
17. Wetherill and Reiff’s business was an instant success and they decided to open a proper storefront in 2009 after recruiting another fried Eddie Trujillo. Within a few short years, uBreakiFix grew to 50 locations and Wetherill was ready to start franchising the concept in 2012. Today, there are uBreakiFix stores all around the U.S. and Canada.
Entrepreneur’s Franchise 500
18. uBreakiFix ranked No. 21 on Entrepreneur’s 2020 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of uBreakiFix franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on uBreakiFix’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 257
- Outlets at the End of the Year: 326
- Net Change: +69
- Outlets at the Start of the Year: 326
- Outlets at the End of the Year: 458
- Net Change: +132
- Outlets at the Start of the Year: 458
- Outlets at the End of the Year: 528
- Net Change: +70
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 28
- Net Change: +9
- Outlets at the Start of the Year: 28
- Outlets at the End of the Year: 18
- Net Change: -10
- Outlets at the Start of the Year: 18
- Outlets at the End of the Year: 23
- Net Change: +5
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
Part 1 – Average Revenues, Cost of Goods Sold, and Gross Profit for uBreakiFix Franchisee-Operated Stores
- As of December 31, 2019, there were 528 franchisee-operated uBreakiFix Stores in operation. 478 franchisee-operated uBreakiFix Stores were in the United States and 50 franchisee-operated uBreakiFix Stores are international stores. This Item 19 only includes financial information on United States-based Stores.
- This financial performance representation (“FPR”) reflects the averages for each identified category of Total Revenue, Cost of Goods Sold, and Gross Profit. This FPR does not reflect any averages for categories that fall under operating expenses, advertising, occupancy, payroll, or other miscellaneous expenses, neither does it reflect averages for net income.
- Total Revenue is the sum of all income received from the sale of repair services and the sale of accessories. This amount also includes any sales tax amount collected.
- Cost of Goods Sold is the sum of all parts or materials consumed in performing repair services and the purchase of inventory for the sale of accessories, less any credit applicable for parts or materials returned for refurbishment.
- Gross Profit is calculated as Total Revenue less the Cost of Goods Sold. It does not reflect net profits.
- uBreakiFix relies upon the franchisee-operated Stores to submit financial expense information in a timely and accurate manner in order to make a financial representation. uBreakiFix has not audited or independently verified the franchisee-supplied information.
- In this FPR, each identified category of Total Revenue, Cost of Goods Sold, and Gross Profit is represented for 3 years of operations for stores that were 1 year or older (i.e., a total of 349 stores out of 478) over the six-year period from January 1, 2014 through December 31, 2019 (the “Six-Year Reporting Period”).
- During the Six-Year Reporting Period, there were 349 stores that were one 1 year or older, 271 stores that were 2 years or older, and 196 stores that were 3 years or older.
- In the accompanying tables, each identified category is represented as an average for each year of the 3 years of operations. Additionally, derivations are represented showing the highest, lowest, average, median, store count above the average, and percent (%) of stores above the average.
A. Statement of Average Total Revenue, Cost of Goods Sold, and Gross Profit for uBreakiFix Franchisee-Operated Stores – 1st, 2nd, 3rd Year of Operations