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WIRELESS ZONE
Wireless Zone franchises operate retail stores under the Wireless Zone® service mark, specializing in the sale of wireless products, services, and accessories such as smartphones, tablets, watches, smartphone and tablet accessories, wireless home internet, and related devices. The franchisor grants franchises for these stores, provides the operating system and trademarks, and sells goods to franchisees, while also licensing the brand for other distribution channels. The target market includes the general public and small businesses in a competitive landscape with other retailers, carriers, and online vendors.
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Franchise Costs
Tiered royalty (22% down to 9% of monthly Gross Profit) + no ad fund + $409-$556/mo technology/software/monitoring fees
Financial Performance
Item 19 Financial Performance
Data Based On: 727 franchised Stores that were open and operating for the entire 12-month period ended December 31, 2025, split into quintiles.
* Weighted average gross revenue calculated as (146 units × $3,340,432 + 146 units × $2,154,601 + 145 units × $1,636,924 + 145 units × $1,284,639 + 145 units × $801,164) / 727 total units = $1,846,038.83. Weighted average gross profit calculated as (146 units × $1,067,443 + 146 units × $677,563 + 145 units × $518,684 + 145 units × $392,019 + 145 units × $240,931) / 727 total units = $580,134.53. Median gross revenue ($1,633,363) and median gross profit ($519,643) were taken directly from the 'Median' row provided for the overall 727 stores in Section A. Revenue for the top and bottom quintiles were used for top and bottom quartile values respectively, as these represent the top 20% and bottom 20% performers. Net income, net profit, and EBITDA figures are not provided. The document explicitly states that the figures do not reflect costs of sales, operating expenses, freight expenses, inventory loss expense, royalties or other costs or expenses required to obtain net income or profit, hence no estimations for net profit ranges (best_guess_profit_low/high) could be made.
Extracted Item 19 Section
Avg. Revenue: $1,846,039
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Unlock financial performance dataWIRELESS ZONE Franchise Analysis
Wireless Zone thrives in the cutthroat world of wireless retail, leveraging a brand established in 1989 amid carrier stores and online giants. Item 19 unveils revenue performance that outpaces many business services peers, but SBA loan records paint a cautionary picture of financing hurdles. With tiered royalties and past franchisee disputes simmering, does this system's expansion mask deeper profitability challenges?
Item 7 details a hefty initial investment of $441,875 to $1,328,210, including a $25,000 franchise fee, driven by leasehold improvements, inventory, and fixtures for prime retail spots. Royalties tier from 22% down to 9% of monthly gross profit—unusually high for retail, stacking on $409-$556 monthly tech/software fees with no ad fund contribution. Item 19 shines brightly: average gross revenue hits $1,846,039, median $1,633,363 across 792 franchise locations, suggesting strong top-line potential in smartphones and accessories. Yet SBA stats are alarming—46 loans averaging $403,491 with a 23.9% default rate, triple the typical 7-10% for healthy franchises, hinting at cash flow strains from fees and competition.
System metrics show stability with +6% growth from 745 to 792 locations (2024-2025), 40 projected new units, but 21 terminations and 61 transfers signal moderate turnover. Two 2016 franchisee lawsuits over royalty miscalculations on commissions, fraud claims, and renewal rights settled with payments and agreement tweaks—watch for ongoing fee disputes. For investors eyeing business services, Wireless Zone offers robust sales volume under Round Room, LLC, but elevated defaults and royalties demand scrutiny of net profits; compare to leaner telecom concepts before committing.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How WIRELESS ZONE Compares
Key Insights
- Higher investment than 96% of Business Services franchises
- Lower than average SBA loan default rate in Business Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
WIRELESS ZONE Current | $442K – $1.3M | $25K | 22.0% | 792 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 198 franchises | $121K – $289K | $47K | 10.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 198 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+19 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for WIRELESS ZONE franchisees (2010 – 2023)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
46 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
802 franchisee contacts on file from official FDD filings.
802 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Two franchisee lawsuits alleging improper royalty calculations on commissions from the provider, breach of franchise agreements, fraud, and state law violations (including renewal rights in one case). Both settled in 2016 with payments to franchisees and amendments to franchise agreements.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a WIRELESS ZONE franchise ranges from $441,875 to $1,328,210. This includes a franchise fee of $25,000. Ongoing royalty fees are 22.0% of gross sales.
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