ZAGG Franchise
Cost, fees, owner earnings, closure rate and litigation for a ZAGG franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
ZAGG discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Gross volume data (2024-2025): avg $28,583-$29,825 monthly, median $24,682-$25,344. Gross profit margins 70-71% average. Wide variance: lowest $4,948-$5,952 monthly. Limited sample.
What a ZAGG franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $15,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 0.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 5.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $49,000 – $109,000 | Item 7 — franchisor's own low/high estimate |
5% royalty + $400-$800 minimum monthly. Ad fund 0.5% (up to 1%). Multiple third-party fees ($160-$242+ monthly).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
ZAGG system size and owner turnover
| Total outlets | 98 |
| Ceased operations | 0 |
| Terminated by franchisor | 5 |
| Transferred to new owners | 2 |
| Closure rate | 0.0% of outlets |
5 terminations in 2025; 6 closures in 2023. Modest transfers suggest moderate exit activity.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is ZAGG worth it? — how it compares to 59 similar franchises
| Ongoing fees | 5.5% of sales | lower than most (median 7%) |
| Startup cost | from $49,000 | cheaper than most (median $157,952) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 2.4%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every retail & business services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a ZAGG
The franchisor's framing: Gross volume data (2024-2025): avg $28,583-$29,825 monthly, median $24,682-$25,344. Gross … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
ZAGG franchise — frequently asked
- How much does a ZAGG franchise cost?
- The FDD lists a total initial investment of about $49,000–$109,000, including a $15,000 initial franchise fee.
- How much do ZAGG franchise owners make?
- Gross volume data (2024-2025): avg $28,583-$29,825 monthly, median $24,682-$25,344. Gross profit margins 70-71% average. Wide variance: lowest $4,948-$5,952 monthly. Limited sample. We grade this disclosure C for honesty.
- What are the ZAGG franchise fees?
- ZAGG's FDD discloses a $15,000 initial franchise fee, a 5% royalty on gross sales, a 0.5% advertising-fund contribution, for roughly 5.5% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty + $400-$800 minimum monthly. Ad fund 0.5% (up to 1%). Multiple third-party fees ($160-$242+ monthly).
- What is the ZAGG franchise profit margin?
- ZAGG does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross volume data (2024-2025): avg $28,583-$29,825 monthly, median $24,682-$25,344. Gross profit margins 70-71% average. Wide variance: lowest $4,948-$5,952 monthly. Limited sample. Recurring fees alone take about 5.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the ZAGG franchise failure rate?
- 5 terminations in 2025; 6 closures in 2023. Modest transfers suggest moderate exit activity.
- How many ZAGG locations are there?
- ZAGG's FDD reports 98 total outlets, with 0 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does ZAGG have complaints or lawsuits?
- ZAGG discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a ZAGG franchise worth it?
- It depends on the numbers, not the pitch. ZAGG scores C on disclosure honesty, carries about 5.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare ZAGG to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with ZAGG or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.