Franchise Disclosure Document
How do I obtain a RadioShack Franchise Disclosure Document (FDD)?A FDD can be obtained by completing our short Franchise Inquiry Form.
For detailed answers to the most popular questions take a look below. By clicking any of the questions you’ll be quickly linked to answers further down the page. Don’t see the question you’re looking for? Send us a note.
A. At present, roughly 20% of U.S. domestic RadioShack stores are dealer/franchise owned and operated. The remaining stores are owned and operated by RadioShack Corporation. Back to Top
A. To ensure that our franchisees will be able to qualify with both lenders and landlords, we require that potential franchisees in the United States have at least $150,000 in liquid (cash) capital and $250,000 net worth. In addition, retail experience is desired. Back to Top
A. This can vary greatly based upon differences in store size, inventory, exterior signage needed, etc. The estimated initial investment, current as of 7/2011, can range from $149,875 to $542,351. Back to Top
A. The initial franchise fee for a single store in the USA is $39,900, which is paid in full at the time you execute the Franchise Agreement. Discounts for multiple stores are available. The ongoing royalties are 7% of your net sales and 3% for the Ad Fund (AF). Master Franchise/international fees vary per country. Please contact us directly for more information. Back to Top
A. Ten (10) years. Back to Top
A. Franchise locations are generally offered throughout the contiguous United States. Not all markets are available for franchising due to existing operating franchise stores of some markets as Company markets. Market availability can and does change over time. We encourage you to use the RadioShack Store Locator to determine markets in which RadioShack has not yet opened a store. Back to Top
A. It is the responsibility of the franchisee to identify and develop each individual location. RadioShack does, however, provide demographic and market analysis tools to assist you. Back to Top
A. RadioShack does not build franchisees’ locations. We do, however, provide a complete solution for interior design, fixture floor plans, product mix and merchandising for your store as part of the franchise program. Back to Top
A. RadioShack currently provides no financing program for franchising. Back to Top
A. RadioShack does not require you to manage the day-to-day operation of your location(s). You are required to maintain an active knowledge of your business and employ qualified management personnel. In our experience, the more involved the franchisee, the more successful the store. With this goal in mind, we require that every franchisee attend the company’s training seminars. Back to Top
A. It ranges between 1,000 and 2,000 square feet. Back to Top
A. Yes, we do. We offer a 15% discount off the initial franchise fee for U.S. military veterans and minority-owned businesses. We also discount the franchise fee for multi-store agreements. Back to Top
A. We highly encourage multi-store franchise agreements in the United States and Master Franchise Agreements internationally.
For qualified franchisees who desire the right to develop multiple stores within a designated territory, we offer the opportunity to enter into an Area Development Agreement. Under this agreement, the franchisee is licensed to develop a mutually agreed upon number of stores in accordance with a specified development schedule. The number of stores to be opened in a particular area is dependent upon a number of factors such as population density, demographic data, the number of potential locations for stores, and the presence of competition. During the term of the Area Development Agreement, we may not open, nor permit others to open, stores operating under the RadioShack marks in the territory for as long as the Area Development Agreement is in effect.
An International Master Franchise agreement is when a Master Franchisee is licensed to open and operate multiple stores with the additional possibility of sub-franchising within a defined territory. The territory is typically a state, a single country or group of neighboring countries and the one-time “country fee” or “master fee” is based upon the potential store development within the territory. The monthly costs and the possibility of participating in the Ad Fund may vary. Back to Top
A. Prospective Owner/Operators must, at a minimum, have the following qualities:
- Significant business experience; we are particularly interested in individuals who have demonstrated successful ownership or management of multiple business units or have managed multiple departments
- Individuals who possess the capability to grow with RadioShack. The ability to develop and execute a business plan. An entrepreneurial spirit and strong desire to work hard and be part of an established franchise system
- Ability to manage finances, including a thorough understanding of business financial statements
- The capability to effectively manage an organization that recruits, trains, and motivates employees who deliver an exceptional customer experience
- An acceptable credit history
- Sufficient liquid assets (i.e., cash) to invest into the business