Risk Score
Pending analysis
Investment Range
$49,000 - $109,000
Min Cash Required
$10,000
Total US Locations
99
Business Summary
ZAGG franchisees operate retail outlets under the ZAGG brand name. These outlets are located in retail spaces, kiosks, or mall carts within shopping centers. ZAGG locations sell a variety of products for consumer electronics and handheld devices, including protective glass, films, covers, audio products, accessories, battery cases, wireless charging solutions, and power solutions. ZAGG also offers authorized repair services for smartphones, cell phones, and other electronic devices.
Corporate History
MMI-JS, LLC, doing business as Retail Channel Partners (RCP), was formed in Delaware on April 30, 2020. After being inactive for a few months, RCP acquired the rights and obligations for the ZAGG franchise system on August 31, 2020, through a Master License Agreement with ZAGG Inc. ZAGG Inc., the brand owner, had been offering ZAGG franchises since 2010. RCP now acts as the franchisor for the ZAGG system, licensing its trademarks to franchisees.
Financial Overview
Investment Range
$49,000 - $109,000
Franchise Fee (High)
$15,000
Minimum Cash Required
$10,000
Royalty %
5%
Marketing %
0.5%
Equipment Costs (Low)
$3,000
Equipment Costs (High)
$44,000
Working Capital
$22,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
ZAGG's financial health shows a concerning trend, with net losses reported in 2024 ($1,102,960) and 2023 ($445,463), contrasting with a profit in 2022. The company's balance sheet for 2024 indicates negative members' equity, as total liabilities exceeded total assets. Additionally, ZAGG made significant write-offs of uncollectible related-party receivables in 2024 ($730,000) and 2023 ($350,000). The financial statements highlight management's and the auditor's responsibility to evaluate if there are conditions raising substantial doubt about the company's ability to continue as a going concern, suggesting potential future financial challenges.
Financing Details
ZAGG does not offer any direct or indirect financing options to its franchisees.
Performance Metrics
Total US Locations
99
Franchised Units
99
Corporate Units
0
Avg Square Footage
400
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
ZAGG has no litigation to report in Item 3 of its FDD.
Bankruptcy History
ZAGG, MMI-JS, LLC, has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
To renew their ZAGG franchise, franchisees must not be in default under their current agreement, must sign ZAGG's then-current franchise agreement, execute a general release of claims against ZAGG, retain the right to occupy their retail outlet, and be current with all vendors and creditors. ZAGG may also choose not to renew the franchise for any reason, provided it gives at least three months' notice.
Training & Support Program
Franchisor Assistance
ZAGG provides pre-opening assistance to its franchisees, including guidelines and recommendations for site selection, an option to purchase a prefabricated kiosk or mall cart, and a mandatory 3-day initial training program covering installation, sales, and management. ZAGG also provides basic equipment, signage, and opening inventory, and arranges for delivery of these items. Post-opening, ZAGG conducts an on-site inspection, offers advice on operations, provides access to its Standards Manual, shares marketing and advertising research, offers social media guidelines, and allows franchisees to consult with staff on routine matters. ZAGG may also suggest retail prices for products and services. Franchisees are required to participate in at least one monthly phone conference and may attend additional educational courses, webinars, or regional training.
Initial Training Hours
34
Training Location
Hybrid: Classroom training at ZAGG's corporate offices in Salt Lake City, Utah, and on-the-job training at the franchisee's retail outlet.
Ongoing Support
ZAGG provides ongoing support to its franchisees after opening, including an on-site inspection of the franchised business to offer feedback. ZAGG also offers advice and counsel, makes its Standards Manual available, shares merchandising, marketing, and advertising research, provides social media guidelines, and allows franchisees to consult with staff on routine operating matters. ZAGG may also establish suggested, minimum, and maximum retail prices for products and services. Franchisees are required to participate in at least one monthly phone conference and can attend additional educational courses, webinars, teleconferences, and regional training sessions.
Franchise Requirements
Ideal Candidate Profile
ZAGG seeks franchisees who are principal owners or members and will serve as the primary manager of their Franchised Business. ZAGG believes the success of the business largely depends on the franchisee's personal and continuous efforts, supervision, and attention, indicating a preference for hands-on operators. These individuals, along with one other designated person, must successfully complete a mandatory initial training program. Additionally, any beneficial holder of at least 10% ownership in the franchisee entity must execute a personal guaranty for all franchise obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
ZAGG franchisees receive an exclusive territory, referred to as the "Franchise Premises." This territory is defined as either the specific shopping mall or retail center where the ZAGG Retail Outlet is located, or a defined geographic area if the outlet is not within a specific shopping mall or retail property. The Franchise Premises will be within the market chosen by the franchisee. ZAGG will not establish or operate another ZAGG Franchised Business within the franchisee's exclusive Franchise Premises without their prior written consent. Franchisees may also operate additional ZAGG Retail Outlets within their Franchise Premises with ZAGG's prior written approval.
Staffing Notes
ZAGG requires one of the franchisee's principal owners or members to be the primary manager of the Franchised Business. Before opening, the ZAGG franchisee (or a principal owner) and up to one additional chosen individual must complete a mandatory 3-day initial training program covering installation, sales, management, setup, and opening. Additional individuals can participate in this training for an extra fee. ZAGG franchisees must also designate an employee specifically to coordinate marketing efforts within the Retail Outlet, handling both local and ZAGG-sponsored marketing activities.