The Shack Has Deep Roots.

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The Shack Has Deep Roots.

FRANCHISE PROFILE

Company Business Data

Business area:

‐ Retail of Consumer Electronics products

Outputs (products, services or technologies)

‐ America’s leading provider of mobile and technology solutions

Link to the official website

‐ www.radioshack.com

‐ www.franchiseradioshack.com

Representative of the franchisor – contact info

‐ Benjamin Simon, Senior Director International Development, Phone: +1 404 245 8424, benjamin.simon@radioshack.com

Corporate office address

‐ 300 RadioShack Circle, Fort Worth, Texas 76102‐1964 USA

Founded in

‐ 1921

Company history / company story

The Shack Has Deep Roots.

As part of the American retail landscape for more than 90 years, the iconic RadioShack brand is widely recognized by consumers

around the globe. We credit our staying power to The Shack's customer-oriented approach, which combines a carefully selected

product assortment with a convenient, small-store format and highly personalized service. Over the years, this approach has

enabled RadioShack to stay at the forefront of the rapidly evolving consumer electronics market and to remain relevant to

consumers in every era. What's more, it has fueled RadioShack's evolution from a humble start-up company into a multifaceted,

multibillion-dollar electronics retailer with more than 35,000 associates, and a vast retail network that includes nearly 4,700

company-operated stores across the United States and Mexico, nearly 1,500 wireless phone centers in the United States, and

approximately 1,300 dealer and other outlets in 29 countries.

Our ability to anticipate consumer needs has made RadioShack a trailblazer in the consumer electronics arena, responsible for

several industry "firsts" that include opening the nation's first "audio showroom" in 1947 and introducing the first mass-produced

personal computer, the TRS-80, in 1977.

In 1986, we began offering mobile telephones, becoming one of the first retailers to enter the wireless market. Since then, The

Shack has become an established wireless authority, selling more than 73 million mobile phones. In more recent years, our

commitment to breaking new ground has included introducing the first affordably priced stereo receiver with digital technology, the

first mobile/portable cellular telephone that consumers could install themselves, and the first high-performance satellite television

system for installation by "do-it-yourselfers."

AN UNEXPECTED BEGINNING

RadioShack traces its roots to two separate and very different entrepreneurial ventures: the Hinckley-Tandy Leather Company, a

supplier of leather shoe parts to shoe repair shops founded in Forth Worth, Texas, in 1919; and RadioShack, a retail store and mailorder

operation that was established in Boston in 1921 to serve the needs of radio officers aboard ships. RadioShack quickly grew

to encompass a handful of stores in the Northeast, as well as a successful electronics mail-order business. The Hinckley-Tandy

Leather Company also prospered, and in 1954, it sold its flagship leather business to expand its scope of operations. In 1959, the

company shortened its name to Tandy Corporation, and in 1963, Tandy Corporation acquired RadioShack, marking the company's

start as a personal electronics retailer. In 2000, Tandy Corporation changed its name to RadioShack Corp., listing on the NYSE

under ticker symbol RSH.

Amidst the break-neck innovations in consumer electronics and personal technology, RadioShack has steadfastly maintained its

position as an enduring American brand, combining the personal touch of a neighborhood merchant with the purchasing power of an

international retailer. Read the adjacent Timeline to take a closer look at The Shack’s evolution through the years.


Recent development

The Shack Stands Apart — And Brings It All Together.

At The Shack, we provide today's consumers with precisely what they need for their connected lives — from a targeted selection of

relevant technology products, accessories and services, to the personal attention and expert guidance of knowledgeable sales

associates — all in a convenient, inviting and easy-to-shop store environment.

The Right Products. In a marketplace that's continuously flooded with new devices, operating systems and accessories, The

Shack offers the technology products that are relevant to today's consumers — including innovative mobile devices, consumer

electronics and personal technology. Our line-up features leading national brands and wireless carriers, as well as exclusive private

brands.

A Range of Mobility Choices. The Shack is an established authority in the wireless market that offers our customers an extensive

range of mobility choices, including a wide selection of devices, plans and accessories across multiple wireless carriers. Our

company-operated stores feature a full complement of postpaid services from three leading national carriers — Sprint, AT&T and T-

Mobile — along with leading national prepaid (no-contract) providers.

Superior Customer Service. The Shack's inviting small-box format means that every customer who walks through our doors gets

the personal attention they deserve — a sharp contrast from the usual big-box experience. Our associates make the most of our

broad product and service selection by practicing an unbiased sales approach, helping customers navigate the choices and find the

best solutions for their connected lifestyle.

The Shack is Seriously Connected.

In the fast-paced world of wireless devices and consumer electronics, The Shack is seriously connected — and we make sure you

are, too.

The market for mobility and personal technology is a complex and often confusing landscape for consumers to navigate — from the

continuous introduction of innovative products, operating systems, accessories and applications, to the constantly evolving array of

related mobility options for data, text and voice service plans.

Through our vast network of nearly 7,300 U.S. and international locations, we offer the optimal combination of products, accessories

and services that today's consumers need to keep their connected lives running smoothly. Inside our comfortable and easy-to-shop

stores, you'll find industry-leading support and expert advice that makes it easier to choose just the right solution for your lifestyle

needs.

Company success stories

‐ 95% of the US population live within a 5 minutes distance to a RadioShack store

‐ 97% Brand awareness

‐ 7,300+ global locations

‐ 35,000 employees

‐ 150 million unique customers every year

‐ 1 in every 3 US household shops at RadioShack annually

‐ $4.5 Billion annual revenue

‐ 62% of shoppers associates brand with with Services and Convenience

‐ 36TH Most Valuable US Retail Brand

‐ 29 countries

‐ 70 Billion annual consumer impressions

‐ 72 million cell phone sold in the past 10 years

‐ 3rd oldest US company traded on wall street

‐ America’s largest mobile phone retailer


International information (number of continents, number of states, total number of units)

‐ 29 countries

‐ 270 locations

Examples of brand communication

„our friends call us THE SHACK‘

„THE SHACK has this and that“

„THE SHACK helps you get it right“

„THE SHACK is who we are“

Interesting facts

‐ 95% of the US population live within a 5 minutes distance to a RadioShack store

‐ 97% Brand awareness

‐ 7,300+ global locations

‐ 35,000 employees

‐ 150 million unique customers every year

‐ 1 in every 3 US household shops at RadioShack annually

‐ $4.5 Billion annual revenue

‐ 62% of shoppers associates brand with with Services and Convenience

‐ 36TH Most Valuable US Retail Brand

‐ 29 countries

‐ 70 Billion annual consumer impressions

‐ 72 million cell phone sold in the past 10 years

‐ 3rd oldest US company traded on wall street

‐ America’s largest mobile phone retailer

Name and company logo

RadioShack

Basic Information

Franchise type

‐ Retail

Business area

‐ Consumer Electronics

Franchise description

‐ Master Franchise

Franchised since

‐ 1976


Position of the company and franchise on the market

‐ RadioShack is relaunching its International Development through Franchising which had been stopped in 2000 to focus on North

America

International territorial geographical area of franchising ‐ the existing business area

‐ Antigua, Aruba, Bahamas, Bahrain, Colombia, Costa Rica, Curacao, Dominican Republic, Ecuador, Egypt, El Salvador, Guatemala, Haiti,

Honduras, Jordan, Kuwait, Lebanon, Mexico, Morocco, Nicaragua, Oman, Panama, Paraguay, Peru, U.A.E, Tunisia and more

International information (number of continents, number of states, number of units)

‐ 29 countries

‐ 270 locations

Product information

‐ Consumer Electronics (Apple, Sony, Samsung, HTC, Bose, Monster, Dr. Dre, etc.....)

‐ 3,500 products in our catalog

What makes your company different?

„America‘s authority in mobility, service, consumer electronics and accessories“

A RadioShack® franchise offers solid benefits, including:

‐ ‐ significant purchasing power that gives access to variety of top‐quality products the customers need and want.

‐ ‐ superior brand recognition

‐ ‐ advertising and marketing resources

‐ ‐ industry leading operational support

‐ ‐ operational tools

‐ ‐ training (initial in US in class and field, at Franchisee and Virtually)

‐ ‐ proprietary software application (POS, Inventory, CRM, etc…)

‐ ‐ brand‐driven store traffic

Franchise awards & testimonials

Growing franchises

‐ Yes

Do you provide disclosure documents to the master‐franchisor?

‐ Yes for US Franchise inquiry only.

‐ For foreign Master Franchise, disclosures will be addressed in complience with their local Franchise law.

Official business plan information and objectives of the franchise in the Czech Republic (or Central or Eastern Europe)

Type of a franchise offered

‐ Master Franchise

Rights offered to licensees

‐ Utilization of the brand

‐ Operation of RadioShack branded stores

‐ Sales of our products under the brand on the internet (optional)

‐ Distribution of our private brands and labels (optional)

Franchising package

‐ ‐ significant purchasing power that gives access to variety of top‐quality products the customers need and want.

‐ ‐ superior brand recognition

‐ ‐ advertising and marketing resources

‐ ‐ industry leading operational support

‐ ‐ operational tools

‐ ‐ training (initial in US in class and field, at Franchisee and Virtually)

‐ ‐ proprietary software application (POS, Inventory, CRM, etc…)

‐ ‐ brand‐driven store traffic

Scope of territorial exclusivity offered to licensees

‐ Czech Republic

‐ Larger territory available according to candidates qualification

Total number of units planned in the Czech Republic

‐ Minimum of 25


Territories, space specifications, and unit placement in the Czech Republic

Business territories, definition of where the master franchisor is interested in providing the master license in the Czech Republic

‐ Czech Republic

Provided territorial exclusivity for the master license

‐ Yes

Provided territorial exclusivity for individual licenses

‐ Under the discretion of the Master Franchisee

Format and business unit specification(s)

‐ Our system in very modular between in‐line stores, shop in shop or kiosk

‐ Sizes ranging from 20 ‐300 sq m

Typical, average, or ideal size of a unit

‐ 100 sq m for a in‐line store

‐ 40‐50 for shop in shop

Ideal business unit locations

‐ In B, C and D level malls or retail developments

‐ Inside larger format DIY (do it yourself) stores, hyper or super markets, etc.... (Shop in Shop)

Requirements for ownership of a unit

‐ N/A (Master Franchise only)

Final number of planned business units

‐ N/A

Specification of requirements for an ideal candidate

Potential candidate profile – who is ideal for us?

‐ Our Master Franchise candidate will have the following characteristics: High integrity, business experience in the market, history of

success, ability to work well with a franchisor, ability to complete a training program, willingness to devote its time to the business,

retail experience, knowledge of the real estate market, and significant capital.

‐ Our usual candidates are exciting retailer and/or distributor of CE that either operates Big box stores and need a neighborhood or

service and accessories solution or any retailer that needs to grow in a regulated and highly structured way while taking advantage of

our buying power.

Selection process of a master franchisee

‐ Validation of their business experience and expertise through visit of their stores, distribution centers, repair centers and corporate

offices.

‐ Validation of financial resources

‐ Discussion with company executives of the company strategy and approach to market

‐ Qualified candidates will need to travel to Dallas Texas for Discovery Days to meet with RadioShack teams and executives at its world

headquarters.

Franchise Agreement

Types of contracts with a master franchisee

‐ Master Franchise agreement

‐ Distribution agreement (optional)

Master franchise contract duration and conditions for its extension

‐ 10 years with 3 opportunities to renew as long as the Master is not in default to the Master agreement

Financial Requirements

Initial investment

o Minimum total investment

� $1,000,000


o Minimum personal investment

� N/A

Fee and Royalty Structure

o Master franchise initial fee

� $337,500

o Royalty ongoing fee

� 5%

o Advertising fund fees

� 1%

Other fees

Store opening (variable)

Support services and systems provided by the franchisor

Full assistance, support and mentoring throught merchandising, buying, training, operation, marketing, communication, development,

cosnbtruction, real estate, logistics, etc....

Initial Master Franchise Training is held in the US for at least 2 weeks.

‐ 1 week at RadioShack University in Fort Worth in class for Theory training

‐ 1 week in the field with a US Franchise

Master Franchise responsible for transportation and accommodation (RS corporate rate)

In country training during launch of first stores (7‐10 days) at RadioShack expenses.

On going training through in country visits by support team few times a year at RS expenses.

Virtual training via any means of communication through internet, intranet, webinar, etc..

Interesting facts about the franchise

‐ 95% of the US population live within a 5 minutes distance to a RadioShack store

‐ 97% Brand awareness

‐ 7,300+ global locations

‐ 35,000 employees

‐ 150 million unique customers every year

‐ 1 in every 3 US household shops at RadioShack annually

‐ $4.5 Billion annual revenue

‐ 62% of shoppers associates brand with with Services and Convenience

‐ 36TH Most Valuable US Retail Brand

‐ 29 countries

‐ 70 Billion annual consumer impressions

‐ 72 million cell phone sold in the past 10 years

‐ 3rd oldest US company traded on wall street

‐ America’s largest mobile phone retailer

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