Two Men and a Truck Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
1. Initial Franchise Fee: $50,000 to $85,000
- The initial franchise fee for a Standard Franchise is $50,000 for a Marketing Area where Two Men and a Truck has had no prior presence and is $85,000 for a Marketing Area where Two Men and a Truck has had a prior presence in any portion of the Marketing Area.
- If your Marketing Area has more than 600,000 people, your initial franchise fee may be higher.
- These estimates do not include any discounts, such as the 10% discount that Two Men and a Truck offers to veterans.
2. Lease Security Deposit: $2,400 to $24,000
- You will need office space to operate a Franchised Business. You need at least 1,000 square feet for a Standard Franchise.
- You must also have space available to park your trucks on site or within a reasonable proximity to your site, as approved by Two Men and a Truck.
- Two Men and a Truck estimates that your rent will be between $1,200 and $12,000 a month for a Standard Franchise, depending on the size, condition, and location of the leased premises.
- Two Men and a Truck estimates that your security deposit will be equal to one or two months’ rent.
3. Leasehold Improvements: $3,000 to $4,000
- You may elect to make some leasehold improvements to your office space, such as painting, installing bulletin or white boards, changing flooring and lighting, and adding office partitions.
4. Miscellaneous Start-up Expense: $8,000 to $25,000
- This estimate includes the cost of purchasing copiers, an initial inventory of boxes, supplies, furniture, fixtures, equipment (other than computer equipment), miscellaneous moving equipment, telephone service, and other miscellaneous items and expenses.
- For Standard Franchises, this category also includes a one-time set-up fee if you participate in a higher level of sales support services offered by Two Men and a Truck.
5. Insurance and Risk Management: $25,000 to $43,000
- You must obtain and maintain insurance for your franchise business with the coverages and amounts specified by Two Men and a Truck. Your cost of coverage will vary, and could be significantly higher, based on your claims history, market, service offerings, and number and type of trucks.
6. Licensing Requirements: $500 to $20,000
- You must satisfy all requirements of applicable law for operating a Franchised Business within the state and area for which you intend to operate. The requirements for legally operating a moving company or a junk removal company vary greatly.
- These requirements may include obtaining a business license from local authorities and/or an authority from the applicable state or federal agency. You may incur legal fees to acquire your authority.
- While a particular jurisdiction may not require any authority for local moves, generally any moves across state lines require an authority.
- You should review the legal requirements of operating in the area in which you anticipate you will be licensed and obtain an estimate of the costs you will incur before you enter into the Franchise Agreement.
7. Legal and Accounting Fees: $1,000 to $2,000
- You should have your attorney and accountant review all of the franchise documents and advise you on the purchase, development, and operation of the franchise.
8. Trucks: $3,000 to $31,900
- You will be required to own or lease at startup two to three trucks (two moving trucks and, if you choose to offer junk removal services, a truck for hauling junk) for a Standard Franchise. You may also be required to obtain a specified number of additional trucks within a specified time period after opening.
- The actual number of initial trucks and any required additional trucks will be specified and agreed to before signing the Franchise Agreement. These requirements may vary based on the franchisee’s experience, the demographics of the Marketing Area, the density of the population, whether the area is a metro area, and other reasonable factors determined by Two Men and a Truck.
- A single moving truck is estimated to cost between $45,000 and $95,000 if new and $15,000 to $60,000 if used. A single junk truck is estimated to cost approximately $80,000.
- Trucks must meet Two Men and a Truck’s specifications for appearance.
- Most franchisees finance or lease their trucks. If you finance the trucks, Two Men and a Truck estimates that you will be required to pay approximately 10% down (between $4,500 and $9,500 per moving truck and approximately $8,000 per junk truck) and should be able to finance the balance over a four to six-year period with monthly payments of between $1,300 to $1,800 per truck.
- If you lease the trucks, Two Men and a Truck estimates that you will be required to pay a down payment ranging from $0 to $9,000 for a moving truck ($800 to $1,600 for a junk truck) and will have monthly payments ranging from $1,500 to $1,900 ($1,000 to $1,300 for a junk truck).
- Your monthly payments will vary depending on the cost of the trucks, the time period of the financing, and the interest rate. If you lease the trucks, your down payment and monthly payments may be less.
- For Standard Franchises, the low estimate assumes you lease two moving trucks (and includes the first month’s lease payment but no down payment) and the high estimate assumes you purchase two moving trucks and one junk truck (and includes the first month’s payment and the down payment).
9. Office/Mobile Technology Costs: $16,000 to $24,000
- Office/mobile technology start-up costs include the cost for the computer systems, hardware, tablets, mobile devices, printers, software, apps, network connections, and firewall services that are included in Two Men and a Truck’s Automation Systems.
- Two Men and a Truck may impose additional computer hardware requirements for some franchisees depending on the franchisee’s experience, the demographics of the Marketing Area, the density of the population, whether the area is a metro area, and other reasonable factors determined by Two Men and a Truck. The cost of these additional requirements is reflected in the high end of the estimate.
10. Initial Marketing Expenses: $20,000 to $40,000
- You must prepare an initial sales and marketing plan and, if specified by Two Men and a Truck, a corresponding budget for your business. The budget is an estimate of the expenses you will incur in connection with the initial sales and marketing plan.
- Your initial sales and marketing plan must be approved by Two Men and a Truck. You must implement the initial sales and marketing plan and a failure to do so is a material default under your Franchise Agreement.
11. Storage Service Expenses: $0 to $30,000
- If you choose to offer storage services, Two Men and a Truck estimates that you will incur $10,000 to $30,000 in expenses for storage vaults, a forklift, and miscellaneous equipment. The low estimate assumes you do not offer such services.
12. Pre-Opening Training Costs: $2,500 to $6,000
- This is an estimate of the expenses you will incur for travel, food, lodging, and employee expenses in connection with attending Two Men and a Truck’s initial training program. In states that charge a sales tax on Two Men and a Truck’s training services, these expenses will include the sales taxes Two Men and a Truck incurs.
13. Additional Funds – 3 Months: $32,600 to $100,700
- This is an estimate of the expenses you will incur during the 3-month initial phase of operations. These expenses include royalty, Advertising Fund, and Technology and Support fee payments, insurance premiums, local advertising, additional supplies, rent, payroll costs, and vehicle lease or loan payments.
- These are estimates, and Two Men and a Truck cannot guarantee that you will not have additional expenses starting your franchise.
14. Total Estimated Initial Investment: $164,000 to $435,600
- The franchisor has relied on its predecessor’s experience in the business and the opening of a substantial number of franchises since 1989, as well as the franchisor’s experience since it began franchising in August 2021, to compile these estimates.
- You should review these figures carefully with your accountant and/or business advisor before making a decision to enter into the Franchise Agreement.
- Total Estimated Initial Investment: $105,500 to $242,100