Wireless Zone franchisees sell Verizon products and services in stores with a personal touch.
Americans can’t live without their cellphones. And there’s a thriving opportunity for businesses because of this.
Just ask the people at Wireless Zone. With more than 400 franchises around the country the 21-year-old franchise, based in Middletown, Conn., operates retail stores dedicated exclusively to selling Verizon Wireless products and services—with a customer-friendly, neighborhood feel.
“We’re not a corporate chain,” says Sean Fitzgerald, director of Franchise Sales. “We’re a locally owned establishment, where people know the owners and feel comfortable with them.”
With that business model, Wireless Zone has met great success in the $150 billion cellular phone market, which should grow by 15% a year for the next five years, according to Fitzgerald. “We have a winning formula as the local wireless professionals,” he says.
“We don’t just teach people how to sell phones,” says Fitzgerald. “We teach how to run a successful retail business.” -Sean Fitzgerald
The Company
Service
Verizon Wireless sells cellphones and accessories, offering customer service aimed at helping consumers find the right phone and plan that meets their needs. To that end, stores feature such consumer-friendly areas, or “zones,” as music, families, and senior citizens. “The consumer has so many choices, it’s become very complicated and confusing,” says Fitzgerald. “We guide them through the process.”
Training
Franchisees must spend two weeks at corporate headquarters, then one week working in an existing store, and, finally, up to a week of training at the franchisee’s location with an operations team. “We don’t just teach people how to sell phones,” says Fitzgerald. “We teach how to run a successful retail business.” That includes everything from how to set inventory levels to handling customer service. The company also provides ongoing training through regional seminars and webinars, a must for a fast-changing industry.
Immigrant-friendly Policies
The company doesn’t know the percentage of franchisees who are immigrants, and there are no specific programs geared towards newcomers to the U.S. But the company encourages franchisees from different ethnic groups to set up shop in areas with a large population drawn from that community. The in-depth pre- and post-startup training also is helpful for learning the ropes.
But the company encourages franchisees from different ethnic groups to set up shop in areas with a large population drawn from that community.
Startup Costs
Total investment ranges from $100,000 to $190,000. That includes signage, fixtures, inventory, and working capital. Franchisees also pay a royalty, which is based on the number of phone activations. There’s no ongoing advertising fee, but Fitzgerald recommends franchisees spend at least $5,000 on their grand opening.
Funding
The company will finance up to 50% of the franchise fee. Franchisees also get up to $25,000 from Verizon towards the cost of any store build-out and $20,000 from Wireless Zone.
What You’ll Need
Most franchisees lease their locations. Once they’ve pinpointed the right facility and received approval, the company sends a dedicated team to do everything from getting permits to putting up signs and setting up the store. Franchisees have the option of buying their equipment from specific suppliers at favorable terms or selecting their own vendor.
Return on Investment
Fitzgerald, who won’t provide specifics, recommends that prospective franchisees contact existing store owners about their expenses and profits.
Previous retail experience isn’t necessary. But great people skills are.
What They’re Looking for in Prospective Franchisees
Previous retail experience isn’t necessary. But great people skills are. “If you don’t feel comfortable being friendly and dealing with customers every day, this might not be the right industry for you,” says Fitzgerald. It’s also helpful to have worked in a small business before. “You have to wear a lot of hats,” says Fitzgerald. “If you’re not used to that, you could find it very stressful.”
“Franchising is … a surer path to success.”
Tips for the Immigrant Buyer
In general, says Fitzgerald, franchising is a good bet for immigrants. “There’s a proven system and training,” he says. “It’s a surer path to success.” When choosing the best business, he says, make sure you have a thorough understanding of the industry you’d be entering. Existing expertise isn’t important. An in-depth understanding of the market is.
Most important: assessing whether the business is something you’d enjoy running. “A lot of people look at the opportunity and the bottom line only,” says Fitzgerald. “But you also have to find a business you can enjoy every single day.”
