Wireless Zone Franchise Costs, Fees & FDD

Year Business Began: 1988

Franchising Since: 1989

Headquarters: Fishers, Indiana

Estimated Number of Units: 745

Franchise Description: Wireless Zone LLC is the franchisor. The franchise offered is for a business operated under the “Wireless Zone” service mark that will sell wireless products and wireless services, and accessories, including the sale and service of smartphones, tablets, watches, smartphone and tablet accessories, wireless home internet, and other services and products associated with devices.
Training Overview: Before the store opens, each person signing the Franchise Agreement as franchisee, or each individual who owns a 20% or greater interest in a business entity franchisee, or in certain cases, the store general manager, must complete, to the franchisor’s satisfaction, its mandatory initial training program. The training program for a new franchisee consists of approximately 80 hours. The training program is intended to deliver a foundation of knowledge to support a new Wireless Zone franchisee/owner in the opening and operations of their store(s). The training is conducted in a virtual environment. In addition, the franchisor may conduct periodic training programs, including at its conventions. Attendance at these meetings will be mandatory.

Territory Granted: Franchisees will operate the store at a specific location that the franchisor and its provider in the market must first approve. The franchisor will designate an area that is a two-mile radius around the original location of the store as the “protected territory,” provided, however, that if the store is located in a city with a population of 350,000 or more persons according to the most recent U.S. Census information, the protected territory will be a one-mile radius around the original location of the store. The exception is that if the store is located in an enclosed shopping mall, then the protected territory is the enclosed shopping mall itself. A protected territory will specifically exclude exhibition, convention and/or conference halls and centers. If franchisees are not in default under the Franchise Agreement, the franchisor will not grant Wireless Zone retail franchises within the protected territory, except as described in the FDD regarding alternative channels of distribution, including non-traditional locations, and except that the franchisor also reserves the right to retain any sub-agent it previously established in the protected territory.

Obligations and Restrictions: The franchisor does not require that franchisees participate personally in the direct operation of the store. Franchisees may operate their store through one or more owners or employees, who are acceptable to the franchisor, who they designate in writing in a form acceptable to the franchisor, to serve as their proxy to supervise the operation of the store. Franchisees must designate a general manager to serve as their proxy if neither they nor another owner with at least a 20% interest in the franchisee business entity will devote at least 40 hours per week to the operation of the store. Franchisees and the designated general manager, if any, must meet the franchisor’s educational and experience standards and must attend and satisfactorily complete the initial training program and all future mandatory training programs. Franchisees must offer and sell only that equipment and products and services that the franchisor has approved. The offer and sale of counterfeit, unauthorized or illegal goods is strictly prohibited. Franchisees must offer, on an exclusive basis, all inventory and services that the franchisor designates as being required for all franchisees. Franchisees may only use the provider(s) the franchisor designates.

Term of Agreement and Renewal: The length of the initial franchise term is seven years. One additional term of seven years is available, if requirements are met.

Financial Assistance: Following a credit review by the franchisor, it may provide extended payment terms for purchases of inventory, use of demo lines and other services. The amount of credit the franchisor offers will be adjusted periodically based on sales and payment performance. The franchisor may also adopt a program in the future to offer third-party financing for equipment purchases.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$1,000	$25,000
Lease Security Deposit and 3-Month’s Rent	$6,875	$52,100
Real Estate Improvements	$25,000	$75,000
Business Equipment and Supplies	$10,000	$16,000
Computer Equipment, Signs, Fixtures, Kiosks and Displays	$73,500	$181,000
Miscellaneous Opening Costs	$2,500	$15,500
Initial Product Inventory	$50,000	$75,000
Initial Marketing Program	$5,000	$5,000
Sales Tax, Use Tax, Other Similar Tax, Freight and Delivery Charges	$3,000	$38,000
Additional Funds for 3 Months	$25,000	$50,000
ESTIMATED TOTAL	$201,875	$532,600

 
Other Fees

Type of Fee	Amount
Royalties	Not more than 22% of the gross profit franchisees earn through sales at their store.
New Program Fees	Amount the franchisor determines.
Foundation Contribution	The amount the franchisor designates. The franchisor currently requires that franchisees contribute $0.25 for each account activation and upgrade transaction.
Audits	Cost of audit, plus amount of underpayment with interest on underpayment.
Interest	1.5% per month.
Sales Tax, Use Tax, Gross Receipts Tax, Excise Tax	The amount imposed by the taxing authority.
Bank Charges, Administrative Costs; and Credit Card Fees	The then-current fees, equal to the amount of the bank or credit card company charge to the franchisor, plus an administrative fee, not to exceed $50 per month or per transaction, depending upon the circumstances.
Renewal Fee	$1,000.
Holdover Fee	$500 per month.
Training “No-Show” Fee	The then-current fee; the current fee ranges from $500 - $2,000 per “no-show.” Fee range is dependent on type and duration of the training class, meeting or seminar and franchisees will be notified of “no-show” fees in excess of $500 when registering for a training class, meeting or seminar.
Transfer Fee	Transfer fee in effect at the time of transfer for the store. Currently the transfer fee is $1,000.
Software License Fees and Additional Point of Sale License	Vendor’s then-current ongoing fee per store location, plus a pro-rata share of the vendor’s then-current program fees. The current ongoing fee is $103 per month, which will include up to 6 point of sale licenses. A Store’s pro rata share of the vendor’s program fee is currently 10% of the monthly fee or less.
Signs, Fixtures, Kiosks and Displays	The then-current costs for signs, fixtures, kiosk and displays. Current costs range from $65,000 to $170,000 or more, depending on the size of store, scope of the project and market.
Computer Equipment, Support, Monitoring, Store System and Equipment Management, Security, and PCI Compliance Services (WSS Technology and Support Model)	$7,000-$9,000 depending upon the store configuration, plus a fee of $100 per month.
Digital Video and Radio Services	Vendor’s then current ongoing fee; the current fee ranges from $20 to $40 per month per store. Fee range is dependent on type of services provided.
Retail Direct Shop	$10 service fee per transaction deducted from commissions for all transactions closed by the franchisor’s remote call-in customer center on the franchisee’s behalf.
Automated Messaging Platform	Vendor’s then current ongoing fee. Current fee ranges from $30 to $50 per store.
ReBiz	Franchisees must install a traffic counting monitoring and reporting system. Currently, the installation fee is $1,600 per store and a service fee of $180 per month per store.
Additional Training	Between $1,000 and $10,000 depending on the type and duration of the training class, meeting, or seminar. Franchisees must also reimburse the franchisor for travel, lodging, meals, and additional expenses of the franchisor’s representatives, if applicable. The franchisor may also provide additional training online or through other forms of electronic communication. The fee for delivering training online or through other electronic forms will not exceed the fee for on-site training.
Ongoing Product Inventory Purchases	$80,000 to $225,000 per month depending upon the franchisee’s sales level, customer demand, time of year and delivery schedule.
Insurance Procurement Fee	The cost for the coverage plus any third-party expenses the franchisor incurs to obtain insurance for the franchisee.
Customer Service Charges	Cost to the franchisor to resolve any service issues with the franchisee’s customers.
Step-in Rights Exercise	The franchisor’s incurred when exercising its step-in rights. Franchisees will also indemnify the franchisor.
Reserve for Charge-Backs	An amount based on historical data to fund charge-backs against commissions expected to occur 6 months following termination or expiration of the Franchise Agreement.
Provider Allowances	The amount of provider charge-backs for signs and store build out allowance.
Intellectual Property Infringement Liquidated Damages	$1,000 per day.
Signs, Kiosks, Displays, Inventory and Other WZ LLC Property Removal Costs	The franchisor’s costs to obtain its property or third party property after termination or expiration, or costs of items if unable to obtain return.
Marketing Development Funds Termination Fees	Franchisees must repay any marketing development funds they received if they (or their transferee) close their store or otherwise terminate the Franchise Agreement after beginning operations within a time period specified by a provider. Also, franchisees will repay a pro rata portion of any marketing development funds they received, based on their shortfall, if they fail to achieve the minimum number of net activations of postpay service that a provider requires that franchisees achieve during their initial period of operation.
Non-Competition and Non-Disclosure Damages and Costs	$100,000 for each violation plus the franchisor’s attorneys’ fees and costs for enforcement.
Non-Compliance with Provider Compliance Agreement	Currently, the fees are $500 per subscriber mobile phone impacted. Up to $2,000 per day and up to $1,000 per location.
Indemnification	Amount of loss or damages plus costs.
Attorneys’ Fees	Varies.

The above information has been compiled from the FDD of Wireless Zone. Year of FDD: 2025.
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