Electronics Repair Franchise Gets a Boost After Purchase by Major Insurer

Franchises usually get their big growth spurt with help from private equity capital.

But for Orlando, Florida-based electronics repair franchise uBreakiFix, its expansion is getting supercharged through an acquisition by a company that insures electronics.

Nashville, Tennessee-based Asurion, one of the leaders in the electronics insurance industry, recently officially completed its purchase of uBreakiFix. Terms of the deal weren’t disclosed.

The fast-growing franchise, which now has 539 locations in the U.S., specializes in fixing electronics the same day they are dropped off, whether it’s a mobile phone, a game controller, computer or a television. It already handles warranty work for Google and Samsung.

In a statement, Asurion said that the two have been partners for the past four years.

“As uBreakiFix joins the Asurion family, we can help fuel their growth, enabling both companies to reach even more customers with the best repair experience,” Tony Detter, Asurion CEO, said in a statement.

Asurion began in 1994 when a group of investors bought a Houston-based roadside assistance company named Road Rescue. It got into the mobile phone insurance business when it bought Nashville-based Merrimac Group in 1998.

The company has grown substantially since, moving from California to Nashville in 2003 to foster more growth. According to the company, it now helps 300 million people around the world solve technology issues with their electronics.

UBreakiFix was founded 10 years ago and has been growing quickly in recent years. Last year, the company added 129 stores, double the previous year.

One of the ways it expands is through converting a mom-and-pop business to a franchise. Ryann Frost, the company’s director of franchise development, told CoStar earlier this year that a new store takes about six months to open while a conversion takes about 30 to 60 days.

Retail landlords favor these types of businesses for inclusion among the tenant mix. “It’s a service people need,” said Jeff Dehart, partner at Atlanta developer SJ Collins Enterprises.

DeHart said Asurion buying the company validates the repair industry. Since Asurion is in the insurance and warranty business, “all of the people get directed to those stores” and that means more traffic for retail centers, he said.