Everyone who has a cellphone also needs a cell plan to use mobile data or simply just to call someone or a Wi-Fi in their home to surf the internet. So, the market is huge, and there are many brands offering cell phone plans as a business.
Metro Pcs is one of those businesses that recently was bought by T-Mobile US, one of the biggest telecom companies in the United States.
With them joining power, you might be thinking about owning a Metro Pcs franchise because of the brand power. In this article, we will talk about Metro Pcs, what kind of system they offer to entrepreneurs, and what you can expect.
About Metro Pcs And Metro Pcs History
The Metro brand was established in 1994 with the name General Wireless but then turned to Metro Pcs in 2002. The company was a huge success.
They hit 1.5 million subscribers in 2005 and had about 20 operating licenses across several states. In 2012, the company merged with T-Mobile US, and the company had around 9 million subscribers at the time.
Now, the company is operating under the name Metro by T-Mobile and has around 75 million subscribers in total combined with T-Mobile’s customers.
They are one of the biggest prepaid virtual wireless service providers, and they compete with the likes of AT&T, Verizon, and other major brands.
Franchise Model Table Of Metro Pcs
|Cost Or Fees||Amount|
|Franchise||Authorized Dealer Program|
How Much Does It Cost To Open A Metro Pcs Franchise?
Metro Pcs offers an authorized dealer program to entrepreneurs with or without an existing store. Entrepreneurs can become a part of the brand via this program. You need to pay a $25,000 fee to enter this program.
You will also have some setup expenses for branding purposes, like refurbishment. The expected cost for this is between $40,000 and $100,000.
You need this because the stores must maintain the same branding across their outlets. There is also a liquidity requirement of $100,000 to start the process.
Why Doesn’t Metro Pcs Offer Franchising?
Metro Pcs is a brand of T-Mobile US that offers plans like wireless and prepaid cellphone plans. The system works on commission, and they offer the services of T-Mobile under the Metro brand. That’s why the environment of the business does not allow for franchising. It only allows for an authorized dealership program.
Most similar companies also choose this path. You can offer Metro Pcs’s services at your existing store as part of your offerings or change your whole store to T-Mobile’s branding and offer only Metro Pcs’s products. In either case, you get paid for what you sell.
Profit & Revenue Of Metro Pcs
The company doesn’t share direct financial information since now they are under T-Mobile’s brand. That’s why it’s not possible to know the profit and revenue of Metro Pcs via official documents. However, some reports online have an estimation as to how much Metro Pcs might be making.
According to these reports, MetroPcs’s revenue is around $1.3 million. There is no information or report about the net profitability of the company.
What Are Some Alternatives To Metro Pcs?
Due to the nature of the industry, there aren’t franchise opportunities available in most cases. However, within the industry of cell phones, cell phone plans, and repairs, there are many different opportunities to pursue. Here are some of the alternatives you can go for in the same industry.
1. Wireless Zone
Wireless Zone is the largest wireless retail franchise in the United States, with over 420 franchised Wireless Zone outlets.
They were founded in 1988 under a different name, but today, they are now the leading retail center of wireless technology carriers, a subsidiary of Verizon Wireless. They currently franchise and have an extensive franchise system in place.
The expected average cost to open a Wireless Zone store is between $182,500 and $443,500. This includes the franchise fee, which could be between $1,000 and $25,000. You also need to pay a royalty fee of between 9% and 22% of your gross profit on a continuous basis.
Similar to Wireless Zone, Experimax is also a technology service provider, but they offer more than a wireless retail franchise. They offer a variety of products and repair services for electrical equipment and provide upgrades.
The company is a full-service technology service provider offering all kinds of services about technological items. They were founded in 2012, and they currently franchise to those interested.
The total cost to open an Experimax varies between $146,339 and $275,979. In this average cost, there is the $49,500 franchise fee and all other related startup costs. For the royalty fee, the franchisee must pay either $500 or 6% of gross sales each month.
3. Fix My Phone
Fix My Phone is mainly an electronic repair business focusing on offering repair services for any kind of electronic device, with a special focus on cell phones. They are one of the industry leaders and actively offers franchising.
The estimated cost to open a Fix My Phone is between $78,685 and $180,200. It could be either a traditional store or a kiosk, which comes with a different cost structure and total estimated costs. The initial franchise fee is $45,000, which is included in this estimated cost.
|Name||Franchise Fee||Royalty Fee||Initial Investment|
In conclusion, Metro Pcs, also known as Metro by T-Mobile, does not offer franchising, but they have an authorized independent dealer program. This program allows entrepreneurs to sell Metro Pcs’s services in their own stores and get a commission for each sale they make.
You need to spend a certain amount of money to refurbish your store in order to become a part of this program. Your revenue is the amount of commission you get. It boils down to your store’s potential to make sales to know if it’s worth being an independent dealer with Metro Pcs.
How much does it cost to open a Metro Pcs?
For branding and refurbishing purposes, you need to change your existing store. This generally costs between $40,000 and $100,000. Depending on what you need to change, it might be outside of these average costs.
Is Metro Pcs profitable?
There is no official information about Metro Pcs’ authorized dealers’ financial situation. However, the income of authorized dealers is based on the number of sales they make, as you get a commission per sale. So, it mostly boils down to your store and the amount you can sell.
Who is the owner of Metro Pcs?
T-Mobile US is the owner of Metro Pcs. Metro Pcs is the subsidiary brand of T-Mobile, and they are now known as Metro by T-Mobile rather than Metro Pcs.