Mobile franchises has been on the increase for over 25 years. The massive jump in the mobile technology has certainly provided a huge retailing vacuum for mobile franchises to jump in. However, mobile franchises are not exactly a financial El-Dorado. The competition is strong and all operators offer similar packages. You can join a generic mobile franchise brand. Alternatively, you can run a mobile franchise which provides wide variety of phones and packages.
The generic mobile franchises are cheaper than the general mobile phone franchises.
These outlets usually operate in the middle of the shopping center alleys or kiosk type cubicles.
Telstra, Optus, Vodaphone and Three Mobile are currently the best generic mobile franchises to own.
All these companies offer a comprehensive range of products and services which suite most customers. The brand does play a part to determine the price of the generic mobile franchise. Nevertheless, the location, equipment and the fit out will determine most of the costs. Thus, as the future mobile franchisee you should choose the most promising player. Currently, Telstra and Optus are very stable businesses. Each of the two companies owns about 30% of the total Australian market. The remaining third is spread around other operators.
The alternative to the main mobile industry brands are the independent franchises. Allphones and Crazy Johns are the strongest players in the industry. Allphones has a very strong hardware buying power. A lot of customers like the provider because of good deals on handsets. Crazy Johns has a similar range of mobile devices. However, the Allphones plans have more attractive options.
The mobile franchises prices depend on many factors. The main ones are the location and the merchandise. Small kiosk type Telstra or Optus shop costs around $80K. The mobile franchise in the middle of the busy shopping centre alley sells for about $100K. Allhpones and Crazy John mobile franchises shops cost about $250K. Again, as with other franchises, the rent, outgoings, salaries and the future stock intake are additional expenses.
Mobile franchises do enjoy a stable market.
But certainly, these businesses are not the customer "queuing centers".
The technological advances in the mobile electronics provide great business opportunity for mobile franchises.
However, the cost of the obsolete equipment often is absorbed by the franchisee rather than the franchisor. The mobile franchise is certainly a prospective business for a next decade or so. Therefore, you must estimate if the price of the mobile franchise will bring needed returns during this period.