What's the Cost of Opening a MetroPCS Franchise?

Updated on November 5, 2014

You're likely here because you're considering launching a MetroPCS franchise. You're interested in becoming a MetroPCS dealer in your area, but aren't sure about the long-term costs and benefits. You're probably asking: What's the bottom line?

MetroPCS Store in Ypsilanti, Michigan. Dwight Burdette, 2011. CC-BY-3.0.
MetroPCS Store in Ypsilanti, Michigan. Dwight Burdette, 2011. CC-BY-3.0. | Source

How Has the T-Mobile Merger Affected MetroPCS Dealers?

In 2013, MetroPCS merged with T-Mobile. What was the impact on MetroPCS consumers and authorized dealers?

  • T-Mobile's trendier and higher-end smartphones became available to MetroPCS customers.
  • MetroPCS users can hop onto T-Mobile's network, which included nationwide 4G, previously not available on MetroPCS.
  • Customers can use unlocked world-compatible GSM phones and make use of T-Mobile's HSPA+ network. Over time, T-Mobile will begin incentivizing MetroPCS customers to move off of MetroPCS's CDMA network, and eventually replace their handsets.
  • At the time of the merger, both companies stated they would retain their two distinct retail store and dealer franchise networks.

Things to Consider Before Opening a MetroPCS Dealership

It's difficult to say how much opening and operating a MetroPCS store will cost you, since this will vary wildly by location and when you decide to make your move. However, to mitigate the possible risks, you should consider the following before become a MetroPCS dealer:

  • Do you have a business plan? It's important to note that MetroPCS stores aren't franchises—they're independent entities run by an authorized dealer. To be a successful MetroPCS dealer, you'll need your own business plan.
  • How's your credit? From setting up a location to getting authorization from MetroPCS, you'll need to show you have good credit.
  • Where do you live? One of most significant costs for a dealership business is rent. If you're in an area where retail space comes at a premium, factor that into your potential costs. At the same time, finding a location where the rent is too low may mean you've chosen an area where there won't be enough consumers with disposable income. Know your market!
  • What is the market saturation like? An Internet search on the topic of MetroPCS dealerships suggests some dealers are disgruntled by over-saturation in their area. Be sure not to open a dealership or kiosk near any others. MetroPCS, unlike a business using the franchise model, doesn't prohibit other MetroPCS stores from opening near your store. Just another thing to consider!

What You Need to Become a MetroPCS Dealer

Once you've decided to make your move, here's what you'll need to do:

  • Write up a business plan, and, if you don't have the capital to start out, obtain a business loan from a bank.
  • Incorporate your business and obtain a license. Since MetroPCS carriers are independent entities, you'll need to set up your own entity and get a business license. This can be done with your local business regulatory office.
  • Receive authorization from MetroPCS. The initial steps for this can be done on the MetroPCS website.
  • Purchase merchandise and set up the store. Along with having a display, you'll need to purchase phones and accessories from MetroPCS.
  • Hire a staff and do some advertising.
  • Sell! Sell! Sell!

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

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