RadioShack
Click
here to link to RadioShack’s detailed company profile
For over 90 years, RadioShack has been a leading national retailer of innovative technology products and services, including personal, mobile, home technology, and power supply products. Founded by entrepreneurs, RadioShack offers consumers a wide range of products and services from leading national brands, exclusive private brands, and major wireless carriers—all in a comfortable and convenient shopping environment.
The RadioShack Franchise Program is one of the most powerful brands in retail with approximately 4,680 company-operated RadioShack stores nationwide. A RadioShack franchise offers solid benefits, including brand-driven store traffic, superior brand recognition nationally and globally, national advertising and a variety of top-quality products customers need and want. Quality support and low investment levels combine to make RadioShack a great investment. Additionally, in 2010 RadioShack was listed as one of the top 30 retail brands in the country in the Most Valuable U.S. Retail Brands report, compiled by well-regarded retail brand consultants Interbrand Design Forum.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
1,358 |
1,273 |
1,172 |
| | % Change | -- |
-6.3% |
-7.9% |
| | Company-Owned |
4,453 |
4,464 |
4,473 |
| | % Change | -- |
0.2% |
0.2% |
| | Total |
5,811 |
5,737 |
5,645 |
| | % Change | -- |
-1.3% |
-1.6% |
| | Franchised as % of Total |
98.4% |
98.9% |
99.6% |
Investment Required
The fee for a RadioShack franchise is $39,900. The fee decreases according to the number of stores the franchisee is intending on opening. RadioShack also offers, in limited instances, a discount to US veterans and minority-owned businesses.
RadioShack provides the following range of investments required to open your initial Full-Line Store franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$39,900 |
$39,900 |
| |
Real Estate Improvements |
$3,750 |
$11,000 |
| |
Build-out Costs |
$7,000 |
$150,000 |
| |
Furniture and Fixtures |
$22,000 |
$50,000 |
| |
Fixture Installation |
$4,500 |
$10,000 |
| |
POS Computer System |
$3,000 |
$7,000 |
| |
Equipment |
$2,360 |
$4,490 |
| |
Exterior Signage |
$4,000 |
$30,000 |
| |
Insurance |
$300 |
$700 |
| |
Opening Inventory |
$30,000 |
$100,000 |
| |
Grand Opening Advertising Campaign |
$3,000 |
$5,000 |
| |
Expenses While Training |
$500 |
$500 |
| |
Security and Utility Deposits |
$1,950 |
$5,000 |
| |
Business Licenses |
$100 |
$300 |
| |
Utilities (3 months) |
$2,100 |
$2,315 |
| |
Employee Compensation (3 months) |
$23,715 |
$26,146 |
| |
Additional Funds (3 months) |
$50,000 |
$100,000 |
| |
Total Investment |
$198,175 |
$542,351 |
Ongoing Expenses
RadioShack franchisees pay a monthly royalty fee of 7% of net sales and a monthly proprietary credit card program participation fee of 2% of the gross dollar amount per transaction. Additional fees include a monthly software maintenance and upgrade fee of $39.99.
What You Get—Training and Support
RadioShack offers franchisees resources and support personnel, including dedicated franchise district managers, sales and support specialists, and bookkeepers. With over 40 years of experience, RadioShack has built a best-in-class training program in which store owners and employees receive training inside their new store, in a nearby established store and in a classroom setting. In addition, a mentor store will be assigned to guide the new store, and store employees will have an orientation/product training program to complete online.
From the Grand Opening forward, RadioShack offers continued support with local workshops and annual conventions. RadioShack franchisees receive ongoing updates about new products, services and offerings to keep them on top of customers’ needs. Franchisees also benefit from the buying power of a major retail network in the purchase of fixtures, signage and other necessities for starting up the business. Additionally, RadioShack has an advertising, merchandising and marketing staff that supports the brand year round with national media campaigns, including advertising in television, digital, print, PR, as well as search engine optimization and social network seeding.
Territory
RadioShack does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
|
