Dr. Phone Fix Franchise Costs $173K – $400K (+ 2024 Profits)
Dr. Phone Fix is a mobile device repair franchise established in 2008 and headquartered in Fort Lauderdale, Florida. The company began franchising in 2014 to meet the demand for professional repair services due to the increasing reliance on smartphones.
Aside from offering repair services, Dr. Phone Fix also sells device accessories like cases and chargers, broadening franchisees’ revenue options. Training is a key part of the franchise package, focusing on technical skills and business management to ensure high standards and effective operations.
As a leader in the mobile repair market, Dr. Phone Fix has completed over 400,000 repairs and is rapidly expanding its presence across the United States. The franchise supports its network with aggressive marketing strategies and operational support, ensuring franchisee success in a growing industry.
Initial investment
Here’s what you can expect to spend to start a Dr. Phone Fix franchise.
Description | Estimated Amount |
---|---|
Initial Franchise Fee | $15,000 |
Training | $7,500 |
Start-Up Package | $102,500 – $227,500 |
Travel and Expenses While Training | $1,000 – $20,000 |
Real Estate 3 Months Initial Rent | $9,600 – $19,500 |
Utility Deposits, Application Fees, Permits | $1,000 – $4,000 |
Additional Inventory Cost | $750 – $4,000 |
Business License / Occupational License | $1,000 – $4,000 |
Insurance | $750 – $1,500 |
Legal and Accounting | $2,000 – $20,000 |
Surveillance System and Alarm System | $500 – $1,500 |
Opening Day Marketing Program | $2,000 – $3,000 |
Marketing First Sixty Days Program | $4,000 – $6,000 |
Miscellaneous Costs | $1,000 – $6,000 |
Additional Funds – Six (6) Months | $25,000 – $60,000 |
Total | $173,000 – $400,000 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
When you sign the Franchise Agreement, you must pay Techy, LLC, a nonrefundable initial franchise fee of $15,000. This fee supports the franchisor in various capacities, such as developing services, preparing legal and registration documents, and covering operational costs.
Royalty Fee
Techy, LLC imposes a Weekly Continuing Royalty Fee of 7% of Gross Revenues received from the previous week’s operations. If weekly gross revenues exceed $7,500, the royalty rate is reduced to 6%.
Marketing and Technology Fund Fee
A monthly fee of 2% of the previous month’s Gross Revenues or a minimum of $785, whichever is greater, is required for the Marketing and Technology Fund. This fee supports various marketing and advertising initiatives managed by the franchisor.
Local Marketing Expenses
Franchisees must allocate 1.5% of the previous month’s Gross Revenues or a minimum of $500, whichever is greater, towards local marketing expenses every month.
Successor Fee
If you decide to continue your franchise under a new agreement after the current one expires, you will need to pay a Successor Fee, which is 20% of the then-current initial franchise fee.
Interest and Late Fees
For any late payments, the highest applicable legal rate for open account business credit is charged, not exceeding 1.5% per month. Additionally, there may be an administrative late fee of $50 for each instance of a late report or payment.
Audit Fee
If an audit reveals that you have understated your gross revenues by 2% or more for any month, you will be responsible for the cost of the audit, which could range from $500 to $1,500, depending on the complexity of the audit.
Transfer Fee
If a franchisee decides to transfer their franchise, a $10,000 transfer fee is required, along with a $7,500 training fee for the incoming franchisee.
How to apply
Opening a Dr. Phone Fix franchise involves several steps designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Dr. Phone Fix franchise.
1. Research the Franchise
- Explore the background, reputation, and business model of Dr. Phone Fix.
- Understand the market demand for smartphone and device repair services in your area.
- Analyze the competition and potential customer base.
2. Review the Franchise Disclosure Document (FDD)
- Obtain the Franchise Disclosure Document from Dr. Phone Fix, which includes crucial information about the franchise.
- Carefully study the FDD to understand the financial obligations, legal terms, and operational requirements.
- Consult with a franchise attorney or a consultant to interpret complex legal and financial details.
3. Secure Financing
- Determine the required investment, including franchise fees, equipment, leasing or purchasing space, and operating capital.
- Explore financing options such as bank loans, SBA loans, or potential franchisor financing programs.
- Prepare a solid business plan to present to lenders, highlighting your projected earnings and business strategy.
4. Choose a Suitable Location
- Identify a location with high foot traffic and visibility, ideally in areas with high smartphone usage and a tech-savvy population.
- Consider factors like rental costs, space layout, proximity to competitors, and accessibility.
5. Complete Franchise Application
- Submit a detailed application to Dr. Phone Fix to express your interest and demonstrate your financial and managerial capabilities.
- Include your resume, business plan, financial statements, and any other documents requested by the franchisor.
- Await approval, which may involve interviews and background checks.
6. Undergo Training and Setup
- Participate in any training programs offered by Dr. Phone Fix to learn about their operating procedures, marketing strategies, and service standards.
- Receive support from the franchisor in setting up the shop, installing the necessary technology and equipment, and preparing to open.
- Train your staff based on the franchisor’s guidelines to ensure quality and consistency in service delivery.
7. Marketing
- Implement the marketing strategies recommended by Dr. Phone Fix to build your local market presence.
- Monitor and adjust your business operations based on performance metrics and customer feedback to optimize growth and profitability.
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.