There’s no shortage of factors that play a role in helping aspiring franchisees chose which brand to invest in. From corporate support teams and simple business models to affordable startup costs that have the potential to lead to strong returns, entrepreneurs take a close look at a brand’s entire opportunity before making the leap to become an owner. And that means thoroughly reading brands’ Franchise Disclosure Documents, or FDDs.
One of the most important parts of a FDD for candidates to review is its Item 19, which highlights a brand’s financial performance. And Wireless Zone, the nation’s largest Verizon Wireless retail franchise, consistently reports strong—and increasing—same store sales. That’s partially because it takes a completely comprehensive look at the brand’s financial performance—not only does it break down its store sales by month, but it also both highlights top and bottom performers in its system.
“When updating our financial performance every year, we set out to tell prospective franchisees a full story. We want them to join our team already having a realistic sense of where they might fit into our system when it comes to sales. That’s an advantage that few franchisors provide,” said Keith Dziki, director of franchise sales for Wireless Zone. “Wireless Zone continues to stand out as the brand to beat because our revenues can’t be matched. We make it our top priority to keep sales up and other costs down, ultimately positioning our franchisees to thrive in their local communities.”
In the fourth quarter of 2016 alone, between the months of October and December, for example, the median average gross revenue for all 302 of the brand’s locations on the gross profit royalty model was $426,257, with the median average gross profit reaching 119,874*. That’s an increase over the previous third quarter between the months of July and September, where the average gross revenue of all 184 franchised locations on the gross profit royalty model was $328,054, with the median average gross profit coming in at $108,794. The fourth quarter is traditionally when Wireless Zone experiences its strongest sales—the holiday shopping season typically leads to heightened retail activity.
That type of positive growth and activity proves that Wireless Zone’s revenues are succeeding in attracting top quality candidates to its system. By giving prospective franchisees the opportunity to examine its financial performance data at their own pace, they have the ability to learn what it takes to make the brand’s system work and decide if they’re in a position to make that happen.
“Breaking into the wireless industry can be very complex. Because phones are so expensive, making a mistake has the potential to be very costly. But Wireless Zine brings a level of support and stability to the table that would otherwise be missing,” said James Altiery, a multi-unit Wireless Zone franchisee based in Dallas, Texas. “But Wireless Zone’s business model goes so far beyond that support. If you follow the system and focus on customer service, it’s easy to boost your sales. They really make it easy for you to succeed.”
As Wireless Zone continues to add new franchisees to its system and improve upon its sales increases, the brand is positioned for rapid growth in the months and years ahead. And with demand for wireless products increasingly on the rise, there’s no doubt that the brand will be able to tap into previously unreached growth potential.
“The role that wireless technology plays in today’s society is only going to get bigger, and we’re planning to make the most out of that opportunity to expand,” said Dziki. “We’re eager to work with franchisees who will improve our sales and continue to give our FDD its unrivaled competitive edge.”
* Wireless Zone FDD – May 2017, Item 19, page 61. The data contains information only from the 302 franchised locations on the Gross Profit Royalty Model during 4th Quarter, 2016.