ZaggFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ZAGG franchise requires a total initial investment of $49K – $109K, including a $15K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $49K – $109K
- 3rd pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- 5.0%
- 6th pct Retail
- Units
- 98
- 27th pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $49K – $109K including a $15K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Monthly Gross Volume and Gross Profit Margin" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 46/100.
- Item 19 reports "Monthly Gross Volume and Gross Profit Margin" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
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
- Ultimate parent
- ZAGG and mophie (joint owners of intellectual property)
- CEO title
- Chief Executive Officer
- Steve Bain
- CEO experience
- 8 yrs
- Years in role or industry
- Incorporated in
- DE
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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
- Headquarters
- OH
- FDD year
- 2026
- States available
- 25
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $21K | $25K |
| Equipment, build-out, other | $14K | $69K |
| Total initial investment | $49K | $109K |
Source: ZAGG 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $49K – $109K
- Better than avg vs category
- Liquid capital req'd
- $21K – $25K
- Better than avg vs category
- Franchise fee
- $5K – $15K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $1 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
This brand's FDD disclosed "Monthly Gross Volume and Gross Profit Margin" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Retail averages
How Zagg Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 98
- Opened
- 4
- Last reporting year
- Closed
- 5
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- 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
3-year detail · Item 20
- Transfers (3yr)
- 2
- Transfer rate
- 2.0%
- Owners selling to other franchisees
- Termination rate
- 6.1%
- Franchisor-initiated terminations
- Ceased ops
- 5.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $150K
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Zagg's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ciuni & Panichi, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 46 / 100 rating
- 01MINORSystem declining: 98 units with -1.0% YoY contraction signals shrinking franchise network
- 02MINORNo profitability disclosure: Average net income not provided in FDD Item 19 prevents ROI validation
- 03MINORWeak unit economics: $29,825 average revenue is extremely low relative to $49k-$109k investment, suggesting 27-369% year-one payback or longer
- 04MINORHigh minimum royalties relative to revenue: $400-$800/month minimums consume 16-32% of average unit revenue before other operating costs
- 05MEDShort initial term: 3-year term creates uncertainty; limited time to establish customer base before renewal negotiation
- 06HIGHGoing concern risk: False designation suggests franchisor may have financial instability or operational constraints
- 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
| Initial term | 3 years |
|---|---|
| Renewal term | 3 years |
| Territory type | Specific mall, shopping center, or defined geographic area |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | Yes |
| Arbitration location | Cleveland, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 12 hrs
- Time to open
- 2 mo
- From signing to launch
- POS system
- RQ Retail Management by iQmetrix
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: RQ Retail Management by iQmetrix
Item 20 · call current owners
Franchisee Contacts
84 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ZAGG · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ZAGG franchise?
The total investment to open a ZAGG franchise ranges from $49K – $109K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ZAGG franchise owners earn?
ZAGG does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is ZAGG's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ZAGG (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many ZAGG franchise locations are there?
As of their most recent FDD filing, ZAGG has 98 total units in the United States, including 98 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.
Is ZAGG a good franchise to buy?
FranchiseVerdict rates ZAGG as a A-grade franchise with a risk score of 46 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.