Described herein are the real world examples of franchises. It includes the conditions for the alliance, the motivations behind the alliance, and the supports offered.
The company was founded in 1988 and began franchising in 1989. It operates in the retail industry as an electronics store. It offers wireless accessories, GPS navigation, pre-paid cellular services, and wireless data devices. It is the largest cellular/wireless retail franchise in United States with more than 450 retail locations (IFA, 2012). Wireless Zone and Verizon Wireless (mobile network operator) have exclusive relationship.
Requirements for the alliance
The franchise fee is between $1,000 and $30,000 and a varying ongoing royalty fee. The term of the franchise agreement is 7 years (renewable), and the total investment ranges from $80,250 to $268,500.
The motivation and support
Wireless Zone has established a strong franchise system. It doesn’t require the franchisees to have any experience in cellular/wireless industry since it provides all the essential resources and tools (IFA, 2012). Training is offered at the Wireless Zone University (headquarter) for a period of two weeks. There is also one week store training offered at the authorized training stores. The franchiser also offers store planning and build-out. This includes the necessary arrangements such as the required permits, installations, deliveries, and store setup. There is field support offered by the company’s field staff (the local business consultants). The field support team regularly visits the stores to enhance the business by reviewing the performance strategies, providing updates, and discussing the best practices (IFA, 2012). The customer service support ensures customer satisfaction by fielding the calls. The central warehouse supports franchisees on both large and small orders. The company also provides advertising supports to the franchisees.
References
Entrepreneur Media, Inc. (2012). Wireless Zone. Retrieved October 18, 2012 from http://www.entrepreneur.com/franchises/wirelesszone/282113-0.html
International Franchise Association – IFA (2012). Wireless Zone. Retrieved October 18, 2012 from http://www.franchise.org/wireless-zone/
