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FDD Talk 2021: uBreakiFix Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on April 29, 2022 by Franchise Chatter Leave a Comment
in FDD Talk: Service Franchises, Franchise Earnings, Mobile Device Repair Franchise, Technology Franchise



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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 2021 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 2021 FDD
  • Section IV – Number of franchised and company-owned uBreakiFix outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
  • Section V – Presentation and analysis of uBreakiFix’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
  • year 1, year 2, and year 3 average, median, highest, and lowest total revenue, cost of goods sold, and gross profit for all franchisee-operated uBreakiFix stores in operation in the United States on December 31, 2020 that had been operating for 1 year or longer, 2 years or longer, and 3 years or longer
  • 2019 and 2020 average, median, highest, and lowest total revenue, cost of goods sold, and gross profit for all franchisee-operated uBreakiFix stores in operation in the United States on December 31, 2020 that had been operating for 2 years or longer

Section I – Background Information

19 Things You Need to Know About the uBreakiFix Franchise

Launches On-Site Phone Repair Service Nationwide

1.  In late October 2020, uBreakiFix launched its new “We Come to You” repair program, bringing on-demand smartphone repair to customers coast to coast. The growing program currently boasts more than 640 mobile repair vehicles across the U.S., making it one of the largest on-site repair providers in the nation. The company was on track to operate more than 700 repair vehicles across the U.S. and Canada by the end of the year.


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2.  Customers can book a We Come to You repair appointment, often as soon as the same day, and a uBreakiFix professional repair technician will meet them at their home, office, or any location convenient to them to complete the repair on site in two hours or less. Eligible services include smartphone screen repairs and battery replacements for most models, with plans to expand the program to include other types of personal tech devices and repair services in the future.

3.  An authorized service provider for Samsung and Google smartphones, uBreakiFix is the nation’s only repair brand to offer multiple manufacturer-backed OEM repairs on the go. For the customer, this means enjoying the convenience of on-site repair without risking their device’s warranty or compromising features like water resistance. All uBreakiFix We Come to You vehicles are outfitted to accommodate OEM-grade tests, tools, and processes, allowing the mobile technician to properly diagnose, repair, test, and return devices to like-new condition.

4.  Justin Wetherill, co-founder and president of uBreakiFix, said, “At uBreakiFix, our story has been shaped by an unwavering commitment to continually improving the repair experience. The market has shifted significantly over the past 10 years. Customers have less time than ever, and they’re looking for goods and services that offer convenience without sacrificing quality. Our We Come to You program was designed to meet that need by giving customers the flexibility to get their phone fixed whenever and wherever works best for them.”

Opens 600th Store in Texas

5.  In mid-November 2020, uBreakiFix opened its 600th location, in Frisco, Texas. The milestone store offers repairs on smartphones, tablets, computers, and more to help the community stay connected. uBreakiFix Frisco is locally owned by Sam and Monica Patel who credit their hospitality background with fostering a passion for customer service, which led them to uBreakiFix.


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6.  Sam Patel said, “For us, the customer experience is paramount. We knew we wanted to be a part of a culture that puts the customer first, and we found that with uBreakiFix. We are honored to have opened the brand’s 600th location here in Frisco, and we look forward to supporting the community’s tech needs with reliable, high-quality tech repair.”

7.  uBreakiFix offers repair service on anything with a power button, from smartphones, tablets, and computers to drones, hoverboards, and game consoles. To date, uBreakiFix has completed more than 9 million repairs at its nearly 600 locations across North America. While common fixes include shattered screens, software issues, and camera issues, the brand offers support for most technical problems on any electronic device, regardless of make or model.

8.  The Patels hope to continue growing uBreakiFix’s Frisco-area footprint by opening more locations in the surrounding communities. “At uBreakiFix, our work is defined by helping people,” Sam Patel said. “Whether a customer needs their computer fixed for work or school, or needs help backing up photos of their grandchildren, we’re here to provide that support and help get their day back on track.”

9.  Justin Wetherill, co-founder and president of uBreakiFix, said, “At uBreakiFix, our story has been shaped by an unwavering commitment to continually improving the repair experience for customers. We founded this company to fill a need for high-quality, convenient repair with great service at a fair price. We always say we’re a customer service company first, and a tech company second. As we begin serving Frisco and the surrounding communities, we look forward to sharing the care and credibility that define the uBreakiFix experience.”

Announces Strong Q1 Growth with 31 New Stores

10.  In mid-April 2021, uBreakiFix celebrated 31 new store openings in the first quarter of 2021, more than doubling last year’s Q1 growth as demand for electronics repair continues to surge. These first quarter additions bring the company’s total footprint to 643 stores across North America. Notable areas of growth included California, Maryland, and Ontario, each with three new locations, as well as Hawaii, which welcomed its first uBreakiFix location in Kailua in February.


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11.  In addition to growing its brick-and-mortar footprint, uBreakiFix continues to expand its We Come to You service, which brings smartphone repair straight to customers’ doorsteps via a network of more than 600 mobile repair vehicles.

12.  Justin Wetherill, co-founder and president of uBreakiFix, said, “The past year has forever changed the way we live, work, and connect with one another. Part of that change is an increased reliance on personal technology, which has amplified the need for tech repair and support. We have certainly felt the demand in our stores, and it makes our growth that much more rewarding to know we’re able to help more people stay connected to the things that are important to them.”

13.  In addition to the growing need for tech repair, uBreakiFix has also stepped up to meet the rising need for tech recycling. In March, uBreakiFix and Samsung launched the Erase E-Waste Challenge encouraging consumers to sort through their old electronics and recycle unwanted tech at uBreakiFix this spring. The challenge culminated on Earth Day, but uBreakiFix will continue offering free tech recycling in all U.S. stores throughout the year.

14.  Wetherill added, “Tech repair and recycling both play an important role in reducing the environmental impact of e-waste. We’re grateful to work with Samsung to make responsible tech recycling more widely available to consumers, and we look forward to seeing the impact we can have, both by Earth Day and in the long term.”

15.  uBreakiFix looks forward to continuing the first quarter’s momentum in Q2 and beyond. In addition to exploring new ways to serve and support customers, the company plans to open around 40 new locations between April 1 and June 30. The quarter is off to a strong start with new stores already open in New York, Virginia, Pennsylvania, and California.

Company History

16.  uBreakiFix was founded in 2009 by Justin Wetherill and his friends David Reiff and Eddie Trujillo in Orlando, Florida. Wetherill developed the idea for uBreakiFix when he dropped his brand new iPhone 3G and shattered the screen. As an avid tech geek, Wetherill felt that he could fix the phone himself. After purchasing the parts he needed, however, he realized that he bit off more than he could chew.

17.  Wetherill turned to his friend David Reiff to help him fix his phone. They realized that if they, as people who were tech savvy, had trouble fixing a phone, how could other less knowledgeable people deal with their broken phones. Wetherill and Reiff bought broken iPhones to practice and got good at doing glass repairs.

18.  This was the beginning of uBreakiFix, with Wetherill and Reiff offering glass repair services for a flat rate of $79.99. Business was booming and Wetherill and Reiff brought in another friend Eddie Trujillo. The friends and business partners opened the first uBreakiFix storefront in 2009. Within a few years, uBreakiFix grew to 50 locations and Wetherill decided to start franchising the concept in 2012. Today, there are uBreakiFix locations around the United States, Canada, and the Caribbean.

Entrepreneur’s Franchise 500

19.  uBreakiFix ranked No. 18 on Entrepreneur’s 2021 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 2021 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

  • Outlets at the Start of the Year:  326
  • Outlets at the End of the Year:  458
  • Net Change:  +132

2019

  • Outlets at the Start of the Year:  458
  • Outlets at the End of the Year:  528
  • Net Change:  +70

2020

  • Outlets at the Start of the Year:  528
  • Outlets at the End of the Year:  478
  • Net Change:  -50

Company-Owned

2018

  • Outlets at the Start of the Year:  28
  • Outlets at the End of the Year:  18
  • Net Change:  -10

2019

  • Outlets at the Start of the Year:  18
  • Outlets at the End of the Year:  23
  • Net Change:  +5

2020

  • Outlets at the Start of the Year:  23
  • Outlets at the End of the Year:  133
  • Net Change:  +110

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Average Total Revenue, Cost of Goods Sold, and Gross Profit for Franchisee-Operated uBreakiFix Stores in Years 1, 2, and 3 of Operation

  • On December 31, 2020, 478 franchisee-operated uBreakiFix Stores were in operation, 434 of which were in the United States, and 44 of which were in Canada or Trinidad. This section of Item 19 includes information only on the Stores in the United States.
  • Of the 434 Stores in the United States, 51 had been operating less than 1 year, and 383 had been operating 1 year or longer. Of the Stores operating 1 year or longer, 315 also had been operating 2 years or longer, and 175 also had been operating 3 years or longer. This section of Item 19 includes information only on the Stores operating 1 year or longer (including those operating 2 years or longer and 3 years or longer).
  • The table below shows Total Revenue, Cost of Goods Sold (COGS), and Gross Profit numbers for all of the Stores in operation in the United States on December 31, 2020 that had been operating for 1 year or longer (including those operating 2 years or longer and 3 years or longer).
  • “Year 1” numbers indicate results achieved in the Stores’ first 12 months of operation. “Year 2” numbers indicate results achieved in the Stores’ second 12 months of operation. “Year 3” numbers indicate results achieved in the Stores’ third 12 months of operation.
  • For Stores operating 1 year or longer but not 2 years or longer, only their Year 1 results are incorporated into the numbers. For Stores operating 2 years or longer but not 3 years or longer, their Year 1 and Year 2 results are incorporated into the numbers. For Stores operating 3 years or longer, their Year 1, Year 2, and Year 3 results are incorporated into the numbers, unless their Year 1, Year 2, and/or Year 3 results were achieved fully or partially before January 1, 2015.
  • During the 6-year period from January 1, 2015 to December 31, 2020, in the United States, 0 franchised Stores ceased operations due to terminations, 118 franchised Stores ceased operations due to reacquisitions by uBreakiFix, 28 Stores ceased operations for other reasons, and 11 franchised Stores both began and ceased operations within any 12-month period.
  • While the averages indicate a general increase in Total Revenue in the Stores’ first 3 years of operation, the Total Revenue of each Store did not increase every year, and not all Stores experienced the same pace or level of growth, or any year-over-year growth. Some Stores experienced year-over-year reductions in Total Revenue.
  • Numbers are not adjusted for inflation.

Year 1

  • Number of Stores:  324
  • Average Total Revenue:  $326,534
  • Median Total Revenue:  $307,867
  • Highest Total Revenue:  $1,222,634
  • Lowest Total Revenue:  $72,316
  • Number and Percent of Stores Higher Than Group Average:  146/45%
  • Average COGS:  $124,086
  • Median COGS:  $113,055
  • Highest COGS:  $537,988
  • Lowest COGS:  $4,349
  • Number and Percent of Stores Higher Than Group Average:  124/38%
  • Average Gross Profit:  $202,448
  • Median Gross Profit:  $192,402
  • Highest Gross Profit:  $684,646
  • Lowest Gross Profit:  $37,995
  • Number and Percent of Stores Higher Than Group Average:  143/44%

Year 2

  • Number of Stores:  281
  • Average Total Revenue:  $441,365
  • Median Total Revenue:  $407,976
  • Highest Total Revenue:  $1,348,334
  • Lowest Total Revenue:  $41,600
  • Number and Percent of Stores Higher Than Group Average:  117/42%
  • Average COGS:  $164,484
  • Median COGS:  $149,296
  • Highest COGS:  $502,167
  • Lowest COGS:  $13,339
  • Number and Percent of Stores Higher Than Group Average:  114/41%
  • Average Gross Profit:  $276,880
  • Median Gross Profit:  $265,597
  • Highest Gross Profit:  $867,457
  • Lowest Gross Profit:  $28,262
  • Number and Percent of Stores Higher Than Group Average:  116/41%

Year 3

  • Number of Stores:  190
  • Average Total Revenue:  $459,111
  • Median Total Revenue:  $439,170
  • Highest Total Revenue:  $1,127,914
  • Lowest Total Revenue:  $133,757
  • Number and Percent of Stores Higher Than Group Average:  88/46%
  • Average COGS:  $171,230
  • Median COGS:  $155,042
  • Highest COGS:  $504,561
  • Lowest COGS:  $4,417
  • Number and Percent of Stores Higher Than Group Average:  77/41%
  • Average Gross Profit:  $287,881
  • Median Gross Profit:  $276,575
  • Highest Gross Profit:  $672,580
  • Lowest Gross Profit:  $77,990
  • Number and Percent of Stores Higher Than Group Average:  90/47%
  • Total Revenue is the sum of all income received from the sale of repair services and accessories. This amount also includes any sales tax amount collected.
  • Cost of Goods Sold (COGS) is the sum of the cost of all parts and 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 COGS. It does not reflect net profit.
  • In this Item 19, uBreakiFx reports information on Total Revenue, COGS, and Gross Profits (as those terms are defined above). The reported information excludes all other expenses that you will incur in operating your Store and Mobile Unit(s), including, without limitation:
  • (a) general and administrative expenses related to the day-to-day operation of a Store, bank service charges, insurance expenses, shipping costs, accounting/professional fees, security costs, and other miscellaneous cost;
  • (b) interest, income taxes, depreciation, and amortization;
  • (c) Store occupancy rental payments, Mobile Unit rental payments, common area maintenance charges (CAM), and other lease payments;
  • (d) property taxes and real estate insurance premiums;
  • (e) internet, telephone, general supplies, electric, water and gas costs;
  • (f) personnel and payroll costs, including salaries and hourly pay for full-time and part-time employees, employee and employer contributions for F.I.C.A. taxes, federal unemployment taxes, state unemployment taxes, worker’s compensation insurance premiums, group health insurance premiums (if any), and payroll processing fees; and
  • (g) fees and charges payable to uBreakiFix as detailed in Item 6, including Continuing Royalties, Advertising Fees, National Account Administrative Fees, Dispatch Fees, Referral Commissions, Internet Referral Source Administrative Fees, and Customer Service Fees.
  • The information in this Item 19 is compiled from unaudited data supplied by the franchisees, which uBreakiFix has not audited or independently verified.

Part 2 – Total Revenue, COGS, and Gross Profit of Franchisee-Operated uBreakiFix Stores in the United States in 2019 and 2020

  • On December 31, 2020, as indicated above, 434 franchisee-operated uBreakiFix Stores were in operation in the United States. Of those Stores in the United States, 119 had been operating less than 2 years, and 315 had been operating for 2 years or longer. This section of Item 19 includes 2019 and 2020 information on the Stores operating for 2 years or longer.
  • During the 2-year period from January 1, 2019 to December 31, 2020, in the United States, 0 franchised Stores ceased operations due to terminations, 114 franchised Stores ceased operations due to reacquisitions by uBreakiFix, 20 Stores ceased operations for other reasons, and 6 franchised Stores both began and ceased operations within any 12-month period.

2019

  • Number of Stores:  178
  • Average Total Revenue:  $474,925
  • Median Total Revenue:  $464,862
  • Highest Total Revenue:  $1,015,785
  • Lowest Total Revenue:  $156,354
  • Number and Percent of Stores Higher Than Group Average:  82/46%
  • Average COGS:  $183,492
  • Median COGS:  $174,739
  • Highest COGS:  $639,915
  • Lowest COGS:  $26,326
  • Number and Percent of Stores Higher Than Group Average:  82/46%
  • Average Gross Profit:  $291,433
  • Median Gross Profit:  $283,829
  • Highest Gross Profit:  $699,992
  • Lowest Gross Profit:  $104,563
  • Number and Percent of Stores Higher Than Group Average:  85/48%

2020

  • Number of Stores:  229
  • Average Total Revenue:  $647,805
  • Median Total Revenue:  $599,803
  • Highest Total Revenue:  $1,927,662
  • Lowest Total Revenue:  $164,892
  • Number and Percent of Stores Higher Than Group Average:  94/41%
  • Average COGS:  $264,143
  • Median COGS:  $242,213
  • Highest COGS:  $1,258,701
  • Lowest COGS:  $15,465
  • Number and Percent of Stores Higher Than Group Average:  95/41%
  • Average Gross Profit:  $383,661
  • Median Gross Profit:  $351,647
  • Highest Gross Profit:  $1,046,879
  • Lowest Gross Profit:  $104,042
  • Number and Percent of Stores Higher Than Group Average:  97/42%

Part 3 – Average and Median Total Revenue for Franchisee-Operated uBreakiFix Stores in 2019 and 2020, Full Year and by Month

  • The table below shows 2019 and 2020 average and median Total Revenue for all Stores that had been operating for 2 years or longer, broken down by full year and by month (January through December).

2019

  • Full Year:  $474,925
  • January:  $36,547
  • February:  $33,720
  • March:  $39,778
  • April:  $36,544
  • May:  $38,268
  • June:  $38,955
  • July:  $40,620
  • August:  $43,508
  • September:  $38,937
  • October:  $40,259
  • November:  $41,764
  • December:  $46,026

2020

  • Full Year:  $647,805
  • January:  $47,708
  • February:  $44,723
  • March:  $42,696
  • April:  $39,166
  • May:  $54,658
  • June:  $59,984
  • July:  $61,025
  • August:  $63,226
  • September:  $60,071
  • October:  $59,889
  • November:  $55,599
  • December:  $59,061
  • Some franchises have earned these amounts. Your individual results may differ. There is no assurance that you will earn or sell as much.

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