Under the 2026 FDD, ZAGG is a location-based specialty retail franchise: the franchisee runs an in-line store, kiosk, or mall cart selling approved mobile-device accessories, installing screen protection, and performing authorized repairs. The franchisee manages people and inventory; Retail Channel Partners controls the approved offer, suppliers, POS data, marketing standards, pricing boundaries, and Franchise Premises.
- Legal franchisor
- MMI-JS, LLC dba Retail Channel Partners (“RCP”)
- FDD basis
- 2026 U.S. FDD, issuance date March 9, 2026
- Applicable formats
- In-line retail space, kiosk, and mall cart, each defined as a “Retail Outlet”
- Operating evidence reviewed
- Items 1, 6, 8, 11, 12, 15, 16, 19, and 20; Franchise Agreement; Standards Manual table of contents
- Item 20 reporting date
- Fiscal years 2023–2025, ending December 31, 2025
- Public pages checked
- August 9, 2026; official ZAGG franchise website, warranty, supplier, and POS sources
What does a ZAGG franchisee actually sell?
The Franchised Business sells only Products and Services that RCP approves, at a set Retail Outlet. The current operating mix centers on mobile-device protection and accessories, installation, warranty replacement activity, and authorized device repair rather than a broad electronics store assortment.
Approved Products
The 2026 FDD identifies protective glass, films and covers, audio accessories, battery cases, wireless charging, and power solutions. The Franchise Agreement defines “ZAGG Products” to include approved merchandise under ZAGG®, InvisibleShield®, iFrogz®, Gear4®, BRAVEN®, and mophie® brands, subject to the current assortment.
Source: 2026 FDD, Item 1, pp. 1–2; Franchise Agreement §§1.11–1.17. See the official ZAGG franchise product overview.Approved Services
“Services” means repair work RCP authorizes for smartphones, cell phones, and other electronic devices. Installation is a disclosed operating skill, and current franchise pages identify participating Retail Outlets as Authorized Warranty Centers for InvisibleShield replacements and installation.
Source: 2026 FDD, Item 11, pp. 21–22; Franchise Agreement §1.13. See the official in-store warranty process.Demand is primarily walk-up or walk-in traffic at the Franchise Premises. A repeat-service path comes from InvisibleShield warranty replacement: ZAGG directs eligible customers to participating Retail Outlets, where availability and replacement or installation fees can affect the in-store option. That warranty channel feeds location-based Services without giving the franchisee a general e-commerce right.
Marketing demand is also system-controlled. RCP approves local plans and materials, can require special programs such as referral discount cards, on-site promotions, giveaways, and gift-card programs, and controls the National Advertising Fund. Item 6 states the current fund contribution is 0.5% of Gross Volume, with authority to increase it to 1%.
The “exclusive territory” is the Franchise Premises, not exclusivity over all ZAGG sales in a market. RCP and affiliates retain online and alternative-distribution rights into the same area. The franchisee cannot use Internet, mail-order, or telephone sales to extend beyond the Franchise Premises; approved advertising may reach farther, but the sale remains location-bound unless RCP consents.
How does work move through a ZAGG Retail Outlet?
The operating cycle is location-based: demand reaches the Retail Outlet, employees sell approved Products or perform authorized Services, every sale enters the required POS System, inventory comes from Franchisor Approved Vendors, and RCP receives operating data for oversight.
Demand reaches the Retail Outlet
- Actor:
- Customer, local employee, and RCP marketing channels.
- Action:
- Walk-up or walk-in traffic, approved promotion, or an in-store warranty-replacement visit starts the interaction.
- Required system/asset:
- Approved signage, marketing materials, Franchise Premises, and the Retail Outlet.
- Output:
- An inquiry within the approved Products and Services scope.
Employee selects the approved solution
- Actor:
- Franchisee’s sales staff or other trained employee.
- Action:
- Match the device need to approved Products, installation, warranty replacement, or an authorized Service.
- Required system/asset:
- Standards Manual, approved assortment, inventory, and any installation or repair equipment RCP requires.
- Output:
- An approved product/service selection ready for fulfillment and checkout.
Product is installed or Service is performed
- Actor:
- Trained unit employee; repair work applies only when RCP authorizes it.
- Action:
- Install screen protection or complete the authorized device-repair work under current operating standards.
- Required system/asset:
- Approved Products, repair parts, installation equipment, and current Standards Manual procedures.
- Output:
- Completed physical fulfillment ready for customer acceptance and payment.
Every sale is recorded at checkout
- Actor:
- Unit employee using the required POS System.
- Action:
- Record the transaction, process approved payment, and capture sales, Products, customer, and inventory data.
- Required system/asset:
- RQ Retail Management by iQmetrix, high-speed Internet, and designated card/payment relationships.
- Output:
- A completed POS System record available to the franchisee and RCP.
Inventory is replenished through controlled sources
- Actor:
- Franchisee orders; ZAGG and other Franchisor Approved Vendors fulfill.
- Action:
- Reorder approved inventory and maintain RCP minimums. Excess SKU stockouts can trigger expedited ordering and force-shipped inventory under the Franchise Agreement.
- Required system/asset:
- Approved vendor channels, inventory data, and RCP’s minimum-stock rules.
- Output:
- Restocked Retail Outlet displays for the next sales cycle.
Operations are reported and reviewed
- Actor:
- Franchisee and RCP.
- Action:
- Submit the prior-month income statement by the 10th, annual financial statements within 60 days after each anniversary, customer information quarterly/on request, and permit inspections.
- Required system/asset:
- POS System records, accounting records, customer data, and Franchise Agreement deadlines.
- Output:
- Records RCP can use to monitor compliance, inventory, labor, product mix, and transactions.
What does the owner have to do, and what can employees do?
The model is contractually owner-managed. One principal shareholder, partner, or member must be the primary manager of the Franchised Business. The franchisee remains solely responsible for employees and contractors, including hiring, discipline, supervision, termination, and wages.
The 2026 FDD does not support a purely absentee model. A non-owner employee cannot replace the principal owner who must serve as primary manager. The franchisee must also designate a marketing employee for local and RCP-sponsored activity.
- Principal owner: primary manager, responsible for supervision and continued attention to the Franchised Business.
- Franchisee as employer: controls hiring, firing, wages, payroll obligations, discipline, and day-to-day employee supervision.
- Sales staff: performs customer-facing product selection, selling, installation, and other trained unit functions.
- Repair-capable employees: perform Services only where RCP authorizes them; RCP may require employee or Retail Outlet certification.
- Designated marketing employee: coordinates approved local marketing and RCP-sponsored programs inside the Retail Outlet.
RCP’s ongoing assistance is narrower than the franchisee’s operating responsibility. Item 11 requires RCP to make the Standards Manual available, provide merchandising/marketing research and social-media guidelines it develops, and offer staff consultation on routine operating matters. Franchisees must participate in at least one monthly phone conference; RCP may also offer webinars, teleconferences, regional training, and other ongoing education.
Source: 2026 FDD, Item 11, pp. 19–22; Franchise Agreement §§2.3.3–2.3.6.Which suppliers and technology are mandatory?
The franchisee controls ordering and payment, not the supplier universe. RCP approves Franchisor Approved Vendors, ZAGG supplies core ZAGG Products, iQmetrix supplies the current required POS System, and named vendors supply Additional Products or repair inputs.
Franchisee controls
- Employee hiring, wages, discipline, and supervision.
- Ordering and paying for approved inventory.
- Local execution of approved marketing.
- Maintenance, cleaning, repairs, and lease obligations.
- Accounting records and required reports.
RCP controls
- Approved Products, Services, vendors, and Business Items.
- Standards Manual and later revisions.
- Minimum inventory and quality standards.
- Marketing approval, operating hours, and pricing boundaries.
- POS access, inspections, and compliance corrections.
Third-party dependencies
- ZAGG: core ZAGG Products and brand intellectual property.
- iQmetrix: current approved RQ Retail Management POS.
- Voice Comm: certain additional mobile accessories.
- Mobile Defenders: FDD-named required repair-parts source.
- Lessor: retail-center operating hours can override RCP minimum hours.
Item 8 states that ZAGG is the current sole Franchisor Approved Vendor for Products. Additional Products remain limited to approved channels: the FDD names Voice Comm for certain accessories unavailable from ZAGG and Mobile Defenders as the required repair-parts supplier. An alternative supplier requires RCP’s written permission.
Source: 2026 FDD, Item 8, pp. 13–16. Supplemental supplier context: VoiceComm’s official distribution overview.RQ Retail Management by iQmetrix is the current approved POS System. It tracks inventory, sales, customers, and card transactions. RCP has independent access to sales, product mix, salesperson productivity, inventory levels, labor costs and hours, and transaction details, and every sale must be recorded in the approved POS System.
Source: 2026 FDD, Items 8 and 11, pp. 16 and 21; Franchise Agreement §§2.5, 7.15, and 7.16.1. See iQmetrix’s official retail-management and POS platform overview.How do in-line stores, kiosks, and mall carts differ operationally?
The three Retail Outlet formats share the same Products, Franchisor Approved Vendor, POS System, Franchise Premises, owner-management, and reporting rules. Their main differences are the customer interface, storage/display layout, and the Lessor’s influence on hours and space.
| Format | Customer interface | Physical operating emphasis | Shared controls |
|---|---|---|---|
| In-line retail space | Walk-in | Dedicated store space for displays, inventory, checkout, installation, and approved Services. | Approved assortment, POS, Standards Manual, Franchise Premises, reporting. |
| Kiosk | Walk-up | Cash wrap, POS space, installation/storage area, product display towers, locked storage. | Same core sourcing, sales-channel, POS, pricing, and marketing controls. |
| Mall cart | Walk-up | Compact cart layout governed by RCP standards and retail-center requirements. | Same core sourcing, sales-channel, POS, pricing, and marketing controls. |
Which decisions remain with the franchisee, and which do not?
The franchisee has employer and local-management responsibility but limited discretion over the customer offer and Franchise System. RCP can change approved Products and Services, vendor specifications, Equipment requirements, Standards Manual procedures, and pricing limits while inspecting the Retail Outlet and reviewing POS System data.
The strongest control combines Franchisor Approved Vendor rules, mandatory POS System recording, RCP access to POS data, Standards Manual revisions, inspections, and Franchise Premises sales limits. The franchisee owns the employment relationship and local execution; RCP defines the Franchise System envelope.
What does Item 20 show about the outlet base?
Item 20 shows an all-franchised reported system by year-end 2025. Franchised outlets moved from 98 in 2023 to 99 in 2024 and 98 in 2025; company-owned outlets moved from one in 2023 to zero in 2024 and 2025.
Item 20 end-of-year outlet counts, 2023–2025
Two scales are shown so the company-owned series remains readable. Exact values are printed at right.
Interpretation: the reported operating base was 100% franchised at December 31, 2025, with 98 franchised outlets and no company-owned outlets; the total outlet count was one lower than at year-end 2024.
Source: 2026 FDD, Item 20, Table 1, p. 36. Reconciliation: 2023 = 98 franchised + 1 company-owned = 99 total; 2024 = 99 + 0 = 99; 2025 = 98 + 0 = 98.What still needs to be verified before relying on this operating model?
The FDD does not disclose a standard Retail Outlet headcount, shift model, labor-hours benchmark, or fixed list of every required SKU and authorized repair procedure. Those details can change through approved Products, Franchisor Approved Vendors, and the Standards Manual.
- Request the current Standards Manual and confirm mandatory versus suggested provisions, including minimum hours and inventory rules.
- Confirm current Products, Services, repair certifications, and whether each Retail Outlet may offer the same repair scope.
- Verify the current Franchisor Approved Vendor list, including the present status of Voice Comm, Mobile Defenders, and the iQmetrix POS requirement.
- Ask for the current minimum inventory logic and how RCP measures the 15% SKU stockout trigger described in the Franchise Agreement.
- Confirm the intended Franchise Premises definition for the proposed site and how approved digital marketing can operate without creating prohibited off-premises sales.
- Verify staffing with current franchisees because Item 15 assigns owner responsibility but does not state standard headcount or shift coverage.
ZAGG’s revenue mechanism is a location-bound Retail Outlet transaction: customers buy approved Products, installation, warranty-related Services, and authorized repair work. The franchisee’s central responsibility is hands-on management of people, inventory, Franchise Premises, and local execution. RCP’s strongest dependency is control over Franchisor Approved Vendors, the Standards Manual, POS System data, marketing, pricing boundaries, and inspections.
The Franchise Premises protects the unit from another ZAGG Retail Outlet but not from ZAGG.com or other distribution channels. The largest undisclosed operating question is the staffing and shift model needed to cover sales, installation, marketing coordination, inventory work, and authorized Services.