FranchiseVerdict
ZAGG logo
FV-03036·CAUTIONExcellent91

Zagg

Formerly known as Jani-King (MMI-JS)

RetailFranchising since 2010Website
Investment
$49K – $109K
5th pct Retail
Avg revenue
$30K
2nd pct Retail
Royalty
5.0%
15th pct Retail
Units
98
64th pct Retail
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $49K – $109K including a $15K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $30K/year (median $25K).
  • Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
MMI-JS, LLC dba Retail Channel Partners
Parent company
Marathon Management Services II, LLC
Incorporated in
Delaware
HQ
7100 E. Pleasant Valley Rd. Ste. 300 Independence, OH 44131
Auditor
Ciuni & Panichi, Inc.
Audited financials
Franchisor revenue
$3.5M
vs $3.0M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one ZAGG unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $29,825
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: retail
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $49K–$109K
Working capital
$
FDD reports $21K–$25K

Unlevered ROIC · per unit

3%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$3K
EBITDA margin
9.0%
Total invested
$102K
Payback
455 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

ZAGG franchisees operate retail locations or kiosks selling screen protectors, phone cases, charging cables, and protective accessories for mobile devices. Day-to-day operations include customer sales/consulting, device protection installation services, inventory management, and local marketing to drive foot traffic in shopping centers or standalone locations.

CEO
Steve Bain
Founded
2020
FDD year
2026
States available
25

Item 7 · what it costs

The Vitals

Total investment
$49K – $109K
All-in to open one unit
Liquid capital
$21K – $25K
Cash you must have on hand
Franchise fee
$15K
Royalty
5.0%
Gross Volume · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$30K
Per unit, per year
Median gross sales
$25K
Item 19 type
Monthly Gross Volume and Gross Profit Margin
Sample size
103 units
vs category median 52
Range (low → high)
$4K$118K
Cohort dispersion
Transparency
6 / 5
vs category median 3 / 5 · above
Revenue rank2th
vs Retail peers
Investment cost rank5th
Lower investment ranks lower (better)
Royalty rate rank15th
Lower royalty = lower percentile (better)
Unit count rank64th
vs Retail peers
Risk score rank84th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
98
Opened
4
Last reporting year
Closed
5
Turnover rate
5.1%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
-1.0%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2024
98-1
Franchised units
2025
99
Franchised units
2026
98
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 17 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

69
Risk · 0-100
CAUTION69 / 100

ZAGG presents meaningful caution-level risk: a contracting franchise system with non-transparent profitability, revenue-to-investment ratios that barely support operations, and structural royalty burdens that jeopardize unit viability.

Score breakdown · what drove the 69 / 100 rating

  1. 01MINORSystem declining: 98 units with -1.0% YoY contraction signals shrinking franchise network
  2. 02MINORNo profitability disclosure: Average net income not provided in FDD Item 19 prevents ROI validation
  3. 03MINORWeak unit economics: $29,825 average revenue is extremely low relative to $49k-$109k investment, suggesting 27-369% year-one payback or longer
  4. 04MINORHigh minimum royalties relative to revenue: $400-$800/month minimums consume 16-32% of average unit revenue before other operating costs
  5. 05MEDShort initial term: 3-year term creates uncertainty; limited time to establish customer base before renewal negotiation
  6. 06HIGHGoing concern risk: False designation suggests franchisor may have financial instability or operational constraints
  7. 07MINORMobile accessory market maturity: ZAGG operates in commoditized consumer electronics space with intense competition and price compression

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Specific mall, shopping center, or defined geographic area
Protected territory
Yes
Initial term
3 years
Renewal term
3 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ohio

Item 11

Training & Operations

Classroom training
22 hrs
On-the-job training
12 hrs
POS system
RQ Retail Management by iQmetrix
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

82 numbers

Locked
(303) 450-••••
CO
(801) 896-••••
UT
(323) 788-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

ZAGG · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above