How Much Does a ZAGG Franchise Cost?

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2026 COST ANSWER

How much does a ZAGG franchise cost?

A new ZAGG franchisee should plan around the 2026 FDD Item 7 estimated initial investment of $49,000 to $109,000 for one Retail Outlet. The disclosed formats are a mall cart, kiosk, or in-line retail space. That range includes the initial franchise fee, initial equipment and marketing costs, POS system, opening inventory, miscellaneous opening costs, and three months of Additional Funds, but the FDD says the total excludes initial real estate costs that can vary by outlet type and site.

$49,000–$109,000

Estimated Initial Investment for a new franchisee. The 2026 FDD covers a mall cart, kiosk, or in-line Retail Outlet. Item 7, pages 11–12, separately discloses $10,000–$30,000 of real estate costs and states that those costs are not included in the official total.

Data basis: MMI-JS, LLC dba Retail Channel Partners; Franchise Disclosure Document issued March 9, 2026; Items 5, 6, 7, 8, 10, 11, and 17; mall cart, kiosk, and in-line Retail Outlet formats. Information checked July 23, 2026. Current brand-level figures were cross-checked against the official ZAGG franchise FAQ.

$5,000–$15,000Initial Franchise FeeNew franchisee; paid at signing. Item 7, page 11.
$20,500–$25,000Additional FundsThree months; payroll, utilities, POS and related operating needs. Item 7, pages 11–12.
5%Royalty FeeGross Volume, subject to a $400–$800 monthly minimum by market population. Item 6, pages 7–8.
$10,000Minimum Working CapitalRequired for each Retail Outlet. Item 7, page 12.
$10,000–$30,000Opening InventoryPaid to ZAGG before opening. Item 7, page 11.
$10,000–$35,000Continuing Franchisee TotalSame-location continuation after the original term. Item 7, page 11.
ITEM 7 INVESTMENT

What is included in the initial investment?

The 2026 Item 7 range combines several payments made at signing, before opening, and during the first three months. The table keeps the new-franchisee amounts separate from the continuing-franchisee contract.

Item 7 expenditure New franchisee When paid Payee
Initial franchise fee $5,000–$15,000 At Franchise Agreement signing MMI-JS, LLC
Initial equipment and marketing costs $1,000 At signing MMI-JS, LLC
POS system $2,000–$3,000 At signing Approved third-party vendor
Opening inventory $10,000–$30,000 Before opening ZAGG
Real estate costs $10,000–$30,000 As incurred Landlord and vendors
Miscellaneous opening costs $500–$5,000 As incurred Landlord, utilities, professionals
Additional Funds, three months $20,500–$25,000 As incurred Employees, suppliers, utilities
2026 Item 7 disclosed ranges by cost category

Bars use a $0–$30,000 scale and compare compatible U.S. dollar ranges for a new Retail Outlet.

Franchise fee
$5,000–$15,000
POS system
$2,000–$3,000
Opening inventory
$10,000–$30,000
Real estate
$10,000–$30,000
Misc. opening
$500–$5,000
Additional Funds
$20,500–$25,000

Interpretation: opening inventory, real estate, and three months of Additional Funds create the largest disclosed dollar exposures. Source: 2026 FDD, Item 7, pages 11–12. The official total excludes initial real estate costs.

FDD CAVEAT

The $49,000–$109,000 total should not be read as an all-in site budget. Item 7 Note 9 says initial real estate costs are excluded, even though a $10,000–$30,000 real estate range appears in the table. A buyer should reconcile the specific lease, build-out, kiosk or cart proposal with the franchisor before treating the official total as complete.

FORMAT-SPECIFIC COSTS

How do mall cart, kiosk, and in-line formats change the cost?

The FDD gives one overall new-franchisee investment range rather than a separate total for each format, but it identifies format-specific real estate and fixture drivers. Average disclosed sizes are about 50 square feet for a mall cart, 100 square feet for a kiosk, and 600–1,500 square feet for an in-line Retail Outlet.

Mall cartAbout 50 sq. ft. A prefabricated mall cart may cost $10,000–$20,000 when the lease does not provide one.
KioskAbout 100 sq. ft. A prefabricated kiosk may cost $25,000–$40,000, depending on design.
In-line spaceAbout 600–1,500 sq. ft. Requires site-specific architecture, design, construction, and leasehold work.

These prefabricated structure amounts are additional format disclosures in Item 7 Note 5, not separate official total-investment ranges. The official ZAGG franchise opportunity page also identifies property type and location as opening-cost variables.

PAYMENT TIMING

When is the money paid?

The largest payments are not due on one date. The 2026 FDD separates contract-signing payments, pre-opening purchases, site costs incurred during development, and operating cash used during the first three months.

At Franchise Agreement signingPay the $5,000–$15,000 Initial Franchise Fee, $1,000 initial equipment and marketing amount, and approximately $2,000–$3,000 for the POS system.
During site developmentPay deposits, rent-related charges, utility setup, professional costs, licenses, insurance, design, construction, and other real estate obligations as arranged or incurred.
Before openingPay ZAGG $10,000–$30,000 for Opening Inventory and complete required insurance and premises preparations.
During the first three monthsUse the disclosed $20,500–$25,000 of Additional Funds for payroll, utilities, POS expenses, suppliers, and other operating needs not covered by receipts.
Beginning in the first month of businessPay the Royalty Fee and applicable monthly system fees on the schedules disclosed in Item 6.

The franchisor's public discovery and opening process places FDD review, financing, real estate, Franchise Agreement signing, training, and store launch in distinct stages.

ONGOING FEES

Which fees continue after opening?

The core continuing charge is a Royalty Fee of 5% of Gross Volume, with a monthly minimum determined by the population of the market where the Franchised Business operates. The National Advertising Fund is currently 0.5% of Gross Volume and may rise to 1%. A Technology Fee of up to 1% is contractually permitted but was not in place in the 2026 FDD.

Minimum monthly Royalty Fee by market population

Columns show only the disclosed monthly minimum, not the 5% percentage calculation.

Interpretation: the Royalty Fee is 5% of Gross Volume, but the minimum payment rises with the disclosed market-population tier. Source: 2026 FDD, Item 6, pages 7–8.

Ongoing fee Amount or basis Timing Important qualification
Royalty Fee 5% of Gross Volume; $400–$800 monthly minimum Second business day monthly Begins in first month of business
National Advertising Fund Currently 0.5%; up to 1% of Gross Volume Second business day monthly Rate may increase to 1%
Technology Fee Up to 1% of Gross Volume Monthly if implemented Not currently in place in the 2026 FDD
POS System Fee Item 6: currently $160 monthly Monthly Paid to third party and subject to change
Other Third-Party Product Fees Currently $82 monthly Monthly per active location REVV, Rallio, Google Workspace, Bridge LMS, and Magento services
Continuing inventory Current ZAGG price list Before shipping Inventory for retail sale must be purchased from ZAGG
SOURCE CONFLICT

Item 6 lists a current POS System Fee of $160 per month, while Item 7 Note 8 describes ongoing POS costs generally ranging from $120 to $300 per month and Item 7 Note 3 refers to a current $175 monthly vendor fee. These figures should not be averaged. The buyer should request the current vendor quote and confirm which POS package applies to the proposed Retail Outlet.

CONDITIONAL OBLIGATIONS

Which costs arise only after a specific event?

Item 6 contains transfer, premises-change, inventory, training, default, and compliance charges that are not part of ordinary monthly operating costs.

  • Transfer: $1,000–$5,000 before a transfer, depending on the transferee and review costs.
  • Franchise Premises change: $1,000–$5,000 before relocating or changing premises.
  • Forced inventory shipment: current product cost plus a 15% surcharge, payable on demand when required inventory levels are not maintained.
  • Special Marketing Program: $0–$5,000 per year as incurred.
  • Additional Training: $1,000 per extra person, plus travel, lodging, and meals.
  • Premature termination caused by default: $5,000 in Liquidated Damages.
  • Late amounts: interest at the lesser of 18% per year or the maximum lawful rate, with California capped at 10% in the FDD note.
  • Compliance fines: amounts vary; disclosed examples range from daily $25–$100 charges to fines up to $10,000 for specified violations.
CAPITAL QUALIFICATIONS

Does ZAGG disclose a liquid-capital or net-worth requirement?

The 2026 FDD does not state a separate minimum Liquid Capital or Net Worth qualification. It does require each franchisee to establish and maintain at least $10,000 of available Working Capital for each Retail Outlet. That operational threshold is not the same as the Estimated Initial Investment, and it is not a disclosed Net Worth test.

Item 10 states that MMI-JS, LLC offers no direct or indirect financing. The official opening process says ZAGG may recommend third-party financing options, but recommendation does not mean approval or guaranteed funding. The FTC franchise buying guide explains why prospective franchisees should separate the franchise fee from premises, equipment, inventory, insurance, licenses, and operating cash.

BUYER VERIFICATION

What should be confirmed before relying on the official range?

The largest unresolved amounts are site-specific. Before signing, the buyer should verify the exact Retail Outlet format, landlord package, POS package, inventory order, and required vendor charges against the current FDD and Franchise Agreement.

Confirm whether the proposed site is a mall cart, kiosk, or in-line space and obtain a written premises and build-out budget for that format.
Reconcile the excluded real estate costs with deposits, rent, pass-through expenses, leasehold improvements, signage, architecture, and contractor charges.
Request the current POS vendor schedule because Item 6 and Item 7 contain different current or general monthly POS figures.
Confirm the opening inventory amount within the $10,000–$30,000 range and identify required purchases from ZAGG and approved suppliers.
Test the three-month Additional Funds allowance against payroll, utilities, rent, insurance, and the minimum $10,000 Working Capital requirement.
Ask for any amendment or updated disclosure before payment or signing. Under the FTC Franchise Rule, the FDD must be provided at least 14 calendar days before a binding agreement or payment to the franchisor or affiliate.
COST SYNTHESIS

What is the practical capital takeaway?

The verified 2026 starting point is $49,000–$109,000 for a new ZAGG Retail Outlet, plus careful treatment of site-specific real estate obligations that Item 7 says are excluded from that total. The franchise fee is only $5,000–$15,000 of the cost contract. Opening inventory, Additional Funds, real estate, and format-specific cart, kiosk, or in-line requirements can be more consequential. After opening, the buyer must also budget for the 5% Royalty Fee, the National Advertising Fund, POS and third-party fees, continuing inventory, and event-triggered charges.

Official ZAGG franchise information Official fee FAQ Official opportunity details FTC franchise guidance






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