Cricket-brand Wireless Store Expansion
Progressive Wireless is “Cricket” brand retailer selling prepaid wireless services. It is seeking $5 million to open 100 new stores in the next 2 years.
Background: When AT&T acquired Cricket Wireless in 2014, it nearly doubled Cricket’s coverage area. This network expansion has created a gold rush to open new virgin territories without any Cricket locations in markets where there is little to no competition for prepaid wireless services.
Progressive Wireless was formed to open 100 Cricket Wireless stores as quickly as possible.
Problem: Wireless customers want the best devices on the best networks with the highest data speeds, but at the lowest price. Prior to AT&T purchasing Cricket, most prepaid plans were on substandard networks and offered lower-end phones.
Solution: Cricket now offers the best phones, the highest data speeds, and AT&T’s robust nationwide network — all at low prices, and with the assurance of a set monthly fee.
Cricket Wireless is the fastest-growing prepaid carrier in the United States. Prepaid wireless plans are growing 10 times more quickly than contract plans. AT&T, the telecommunications giant, has committed to building LTE on Cricket’s unused spectrum.
Based in Scottsdale, Arizona, Progressive is led by a management team that has owned wireless stores for more than 40 years. The Founder and President founded and sold the largest Sprint Dealership in Arizona.
Progressive opened its first store in August 2015.
Stores 2 & 3 are under construction in Billings and Bozeman, Montana. They are expected to open around October 2015.
Stores 4 through 7 have leases signed and will be located in Meridian and Idaho Falls, ID as well as Butte, MT and a second store in Billings.
For stores 8 through 13, locations have been identified and leases are being negotiated.
Each store is projected to have $400,000 in annual revenues and $200,000 in annual profits. Revenues are earned from activation commissions, accessory sales and a lifetime residual from each customer that remains active.
The company’s internal projections show a 47% average annual cash return with future pre-IPO upside of 500% total return-on-investment (ROI) based on fifth year revenues.
Denny Mitchell – Founder & President
Denny has more than 16 years’ experience in the wireless industry.
He began in retail sales with ALLTEL before becoming an Account Executive, which sparked an interest in wireless dealerships.
Denny founded and operated E Systems Management, a Sprint dealership. He grew the company to 34 stores. It became the largest Sprint dealership in Arizona, receiving awards for highest customer satisfaction, lowest churn and fastest growth. The company was eventually acquired.
Steve Miller – Board Member
Steve has over three decades of leadership experience directing company turnarounds. He led Axxess Technologies, a distressed, venture-backed company, to record profitability through brand development, new distribution, new product introductions, mergers and acquisitions, and operational consolidation. He then led the company to a $240 million acquisition.
He was also the former CEO of Head Sports in North and South America.
David White – Board Member
David has founded several companies. He has also helped acquire bank financing for large commercial real estate projects, and then managed their construction.
He has a Bachelor’s degree from Brigham Young University.