T-Mobile Franchise FDD, Profits & Costs (2025)
T-Mobile, founded in 1994 and headquartered in Bellevue, Washington, is a major player in the telecommunications industry, especially recognized for its vast 5G network. Initially known for mobile phone services, the company has since expanded its offerings to include high-speed internet solutions for both homes and businesses.
T-Mobile began franchising its business and internet services shortly after merging with Sprint in 2020, leveraging the combined resources to broaden its market reach.
T-Mobile differentiates itself by providing internet services through its 5G network, which covers more locations than its competitors. This approach allows for easy setup with a 5G Wi-Fi Gateway device, no installation appointments, and no extra equipment costs.
The service is available across the U.S., but coverage may vary based on the network’s reach. T-Mobile’s focus on value and transparent pricing has helped it grow rapidly, with substantial investments planned to enhance its network.
Initial Investment
How much does it cost to start a T-Mobile franchise? It costs on average between $300,000 to $725,000 to start a T-Mobile franchised location.
This estimate covers various expenses, including a franchise fee that falls between $30,000 and $50,000, leasehold improvements, equipment, signage, inventory, marketing, and other startup costs.
Average Revenue (AUV)
How much revenue can you make with a T-Mobile franchise? A T-Mobile franchised location makes on average $2 million in revenue (AUV) per year.
This compares to $588,000 yearly revenue for similar IT Support franchises. Below are 10 T-Mobile competitors as a comparison:
Frequently Asked Questions
How many T-Mobile locations are there?
As of August the latest data, T-Mobile operates around 6,272 retail locations across the United States. The largest concentration of stores is in California, which represents about 11% of the total, with 686 locations.
The company’s extensive network covers 52 states and territories, with significant presence in major cities like Houston, Chicago, and Los Angeles.
What is the total investment required to open a T-Mobile franchise?
The total investment required to open a T-Mobile franchise ranges from $300,000 to $725,000.
What are the ongoing fees for a T-Mobile franchise?
T-Mobile does not charge traditional royalty fees, as most locations are corporate-owned or run through dealer programs. Dealers may instead incur costs related to revenue-sharing or commission adjustments.
For marketing, there are no set ongoing fees since T-Mobile handles national advertising. However, dealers might cover local marketing or co-op advertising expenses specified in their agreements.
What are the financial requirements to become a T-Mobile franchisee?
To become a T-Mobile franchisee or authorized dealer, the financial requirements include a minimum net worth of $750,000 and at least $150,000 in liquid capital.
These requirements ensure that potential franchisees have the financial stability to cover initial investment costs and sustain ongoing operational expenses. Additionally, prior management or business ownership experience may be required to meet eligibility criteria.
How much can a T-Mobile franchise owner expect to earn?
The average gross sales for a T-Mobile franchise are approximately $2.0 million per location. Assuming a 15% operating profit margin, $2.0 million yearly revenue can result in $300,000 EBITDA annually.
Who owns T-Mobile?
T-Mobile does not follow a traditional franchise model; instead, most of its retail locations are corporate-owned and operated directly by the company. Some stores function under exclusive dealer agreements, where independent businesses partner with T-Mobile to sell its products and services.
These authorized dealers do not “own” a T-Mobile franchise in the conventional sense but operate under T-Mobile’s brand through contractual agreements.
The company retains significant control over its branding, operations, and standards, while the dealers handle day-to-day management and customer interactions.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
