FDD Talk 2016: The Two Men and a Truck Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2016 post, you’ll learn the following:

• Section I – Background information on the Two Men and a Truck franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Two Men and a Truck franchise, based on Item 7 of the company’s 2016 FDD

• Section III – Presentation and analysis of Two Men and a Truck’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:

• average annual gross sales, direct labor expenses, cost of supplies/damages, moving truck expenses, advertising expenses, operating fees, administration/support staff expenses, and total average annual expenses for new franchises (i.e. those that completed their first 12 months of operations during the years 2011 through 2015 and that were in operation as of December 31, 2015) for each of the first four years they were operated

• average annual gross sales, direct labor expenses, cost of supplies/damages, moving truck expenses, advertising expenses, operating fees, administration/support staff expenses, and total average annual expenses for the top 25% of new franchises in terms of net profit (by dollar amount) for each of the first four years they were operated

• average annual gross sales, direct labor expenses, cost of supplies/damages, moving truck expenses, advertising expenses, operating fees, administration/support staff expenses, and total average annual expenses for experienced franchises (i.e. those that were in operation as of December 31, 2015 and, at that time, had been in operation for at least five years) for the years 2011 through 2015

• average annual gross sales, direct labor expenses, cost of supplies/damages, moving truck expenses, advertising expenses, operating fees, administration/support staff expenses, and total average annual expenses for the top 25% of experienced franchises in terms of net profit (by dollar amount) for the years 2011 through 2015

• average annual sales for the years 2012 through 2015 for all franchises open as of December 31st of each of those years

Section I – Background Information

When Brig and Jon Sorber were in high school back in the early 1980s, they were looking for a way to make some extra money. Their mother, Mary Ellen Sheets, had a 12-foot step van she used for hauling furniture she bought at auctions and estate sales. The brothers started borrowing it to take on small moving jobs in and around Lansing, Michigan.

They had mom create a logo they could use for advertising in a weekly community newspaper. It was a simple stick-men logo, but it’s the one they still use on every truck, sign, and advertisement. It worked well, but eventually both boys went off to college.

Mary Ellen, however, kept getting calls from people who wanted help moving. So in 1985 she hired a couple guys to keep it going. And her boys helped out whenever they were home for the holidays and during summer breaks.

Soon enough Mary Ellen could see the possibilities and spent $350 to get a 14-foot truck to handle bigger moves. It’s the only capital investment she’s ever made in the company.

Four years later, in 1989, she started franchising the concept, and the first location outside of Michigan was awarded to her daughter, Melanie Bergeron, in Atlanta GA.

The number of locations has grown slowly but steadily over the last 10 years to its current 291, two of which are company-owned, and 29 of which are located outside the U.S.

Here’s how Two Men and a Truck keeps things rolling in the moving industry:

A Family Affair

Thirty years after its founding, the company is still based in Lansing, and is also still family-owned and operated as a privately held company. Sheets is the founder, Bergeron is the Chair of the Board, Brig is the Executive Chairman, and Jon is the Executive Vice President. It is only recently that both the CEO and President are from outside the family.

Continued Growth

The company has experienced growth for 60 consecutive months. Expansion continues with more locations domestically as well as in Canada, Ireland, and the United Kingdom.

Robust Philanthropy

Two Men and a Truck donates more than $2.8 million in moving services each and every year and offers help to those in need through several different charitable programs, including Movers for Moms (collecting donations for women every spring and delivering them to local women’s and family shelters on or before Mother’s Day), Movers for Military (collecting essential items that will be delivered to veterans living at local shelters during Veteran’s Day), Movers for Meals (a fall food drive), Movers for Mutts (collecting food, toys, and other essential items for pets at local animal shelters), and Truckload of Warmth (winter clothing collection donated to local shelters).

Focus on Service

The company offers comprehensive home and business relocation and packing services, whether it’s moving apartments, condominiums, homes, businesses, and everything in between – from very small to very large.

Their goal is to provide superior customer service to reduce their relocation stress. 96% of their customers would recommend them to friends and family.

The company operates on what it calls the grandma rule: Treat everyone the way you would want your grandma to be treated.

Section II – Estimated Costs

• Please click here for detailed estimates of Two Men and a Truck franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis