Considering a Two Men and a Truck Franchise? Don’t Overlook These 38 Important Franchise Fees

Updated August 16, 2020.

If you are considering a Two Men and a Truck franchise, don’t get blindsided by these 38 important franchise fees (from the initial franchise fee, to the royalty fee, to 36 other fees found in Items 5 and 6 of Two Men and a Truck’s 2020 FDD).

1.  Initial Franchise Fee for Standard Franchise:  $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.

• The initial franchise fee grants you the right to operate within a specified Marketing Area that will generally have a population of approximately 420,000 to 600,000, although some pre-designed Marketing Areas will exceed 600,000 in population.

• In some circumstances, Two Men and a Truck may approve a Marketing Area that is not a pre-designed Marketing Area that contains a population of more than 600,000. In those cases, Two Men and a Truck may charge an additional initial franchise fee based on $10,000 for every additional 50,000 population within that area ($10,000 x the actual additional population ÷ 50,000).

2.  Initial Franchise Fee for Mini-Market Franchise:  $30,000

• The initial franchise fee for a mini-market franchise is $30,000. The initial franchise fee grants you the right to operate within a specified Marketing Area that will generally have a population of approximately 100,000 to 225,000.

• Two Men and a Truck is a member of the International Franchise Association and participates in the International Franchise Association’s VetFran Program, which provides a 10% discount on initial franchise fees to veterans of the U.S. Armed Forces who otherwise meet the requirements of the VetFran program.

3.  Franchise Reservation Fee:  $10,000

• If Two Men and a Truck enters into a Preliminary Approval Agreement with you before you sign a Franchise Agreement, you must pay a franchise reservation fee of $10,000 for a standard franchise or $5,000 for a mini-market franchise at the time you sign the Preliminary Approval Agreement.

• If you enter into a Franchise Agreement with Two Men and a Truck, the franchise reservation fee will be applied to the initial franchise fee due under the Franchise Agreement.

• If the Preliminary Approval Agreement expires or terminates for any reason other than the signing of a Franchise Agreement, Two Men and a Truck will retain the franchise reservation fee.

4.  Area Development Fee:  initial fees for each of the Marketing Areas you have a right to develop under the Area Development Agreement

• If you become an Area Developer by signing an Area Development Agreement, you pay Two Men and a Truck the initial fees for each of the Marketing Areas you have a right to develop under the Area Development Agreement at the time you sign the Area Development Agreement.

• You must agree to develop at least two franchises under the Area Development Agreement.

5.  Royalty Fee:  6% of all Gross Sales

• Due Date:  The 15th day of each month or by 5:00 p.m. of the first business day following the 15th, if the 15th is not a business day; payments made by automated clearing house (ACH) transfers.

• Gross Sales include all revenue from any source as defined in the Franchise Agreement or otherwise by Two Men and a Truck.

6.  Contributions to Advertising Fund:  1% of all Gross Sales

• Due Date:  The 15th day of each month or by 5:00 p.m. of the first business day following the 15th, if the 15th is not a business day; payments made by ACH transfers.

• The Advertising Fund is administered and controlled by Two Men and a Truck.

7.  Monthly Technology and Support Fee (Standard Franchise):  1% of Gross Sales with a minimum payment of $1,200 per month

• Due Date:  The 15th day of each month or by 5:00 p.m. of the first business day following the 15th, if the 15th is not a business day; payments made by ACH transfers.

• Two Men and a Truck may change this fee based on the amount required to develop and support the operating system and other programs.

8.  Monthly Technology and Support Fee (Mini-Market Franchise):  2% of Gross Sales with no minimum

• Due Date:  The 15th day of each month or by 5:00 p.m. of the first business day following the 15th, if the 15th is not a business day; payments made by ACH transfers.

• Two Men and a Truck may change this fee based on the amount required to develop and support the operating system and other programs.

9.  Fees for Sales Support Services (Standard Franchise):  1st level (all franchises) – $80 per month; additional levels of services range from $200 to $4,000 per month

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

• All standard franchises pay for the 1st level of services. The additional levels of services are usually optional for standard franchises, but may be required for franchises with performance
  issues.

10.  Fees for Sales Support Services (Mini-Market Franchise):  $500 per month, plus a $35 per transaction fee for each completed move originating from the Sales Support Team for the first 12 months (and after if you employ a CSR), then $2,000 per month with no transaction fee if you do not employ a CSR

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

• These services are required for all mini-market franchises.

• A CSR is a customer service representative.

11.  Records and Bookkeeping Fees:  $200 to $1,000 per month; late fee of $100 for failure to timely submit data

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

• These services are optional for standard franchises and required for mini-market franchises.

12.  Local Pay-Per-Click (PPC) Ad Spend:  100% of PPC spend billed to Two Men and a Truck by all managed ad platforms

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

• These services are optional if you choose to use the PPC service provided by Two Men and a Truck – if not, you must use the Designated or Approved Supplier.

13.  Local Pay-Per-Click (PPC) Service Fee:  15% to 20% of media spend

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

• These services are optional if you choose to use the PPC service provided by Two Men and a Truck – if not, you must use the Designated or Approved Supplier.

14.  Risk Management and Safety Services Fees:  $1,800 to $4,800 per year

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

• Two Men and a Truck may require you to obtain these services from it or a Designated Supplier.

15.  Local Advertising Expenditures (Standard Franchise):  for each calendar year, an average of $1,500 per month for new franchises until operated for a full calendar year, and otherwise 2% of Gross Sales of the previous calendar year

• Due Date:  As incurred.

• You must spend the required minimum amounts on local advertising. Two Men and a Truck may lower the minimum amount for franchisees that meet specified requirements.

• Two Men and a Truck may increase the percentage of Gross Sales to 3% in some circumstances.

16.  Local Advertising Expenditures (Mini-Market Franchise):  for each calendar year, the greater of 2% of Gross Sales or $1,000 per month

• Due Date:  As incurred.

• You must spend the required minimum amounts on local advertising. Two Men and a Truck may lower the minimum amount for franchisees that meet specified requirements.

• Two Men and a Truck may require you to spend some or all of these amounts on advertising methods specified by it.

17.  Advertising Cooperative:  as assessed by cooperative

• Due Date:  As assessed.

• Cooperatives can impose assessments for advertising of up to 1% of Gross Sales.

18.  Miscellaneous Fees and Charges:  as assessed for goods or services provided ($30 to $300)

• Due Date:  Any charges will be paid by ACH transfers on the last business day of the month in which they are incurred.

• Includes payments for behavioral assessments, career ads, and technical support services purchased from Two Men and a Truck.

19.  NSF Fees and Interest:  NSF fee of at least $100 and interest of 2% per month or maximum rate allowed by law

• Due Date:  As incurred.

• An NSF fee must be paid if you have insufficient funds to cover an electronic transfer and interest must be paid on all overdue amounts.

20.  Audit Expenses:  cost of audit

• Due Date:  On receipt of Two Men and a Truck’s invoice.

• Two Men and a Truck reserves the right to require you to pay it or its representatives or third-party agents for the reasonable expenses of an audit, inspection, and investigation.

21.  Fees for Assistance in Commencement and Operation of Franchise:  $500 to $1,200 per day, plus travel and living expenses of training personnel

• Due Date:  On receipt of Two Men and a Truck’s invoice.

• Two Men and a Truck will provide reasonable assistance to you in the commencement and operation of your franchise.

• Two Men and a Truck may charge a reasonable per diem fee plus travel and living expenses of its staff or third-party vendors providing this assistance.

22.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse Two Men and a Truck if it incurs liability from the operation of your franchise.

23.  Attorney’s Fees and Costs:  will vary under circumstances

• Due Date:  As incurred.

• You must pay Two Men and a Truck’s costs if it must take action to enforce your obligations to it.

24.  Reimbursement for the Cost of Insurance:  $25,000 to $43,000 annually

• Due Date:  As incurred.

• If you fail to obtain or maintain any of the required insurances, Two Men and a Truck may obtain that insurance on your behalf and you must reimburse it for the cost.

25.  Payments Relating to Participation in Captive Insurance Program

• Due Date:  Paid by ACH transfers on the last business day of the month in which they are incurred.

26.  Tax Reimbursement Fees:  will vary with circumstance

• Due Date:  As incurred.

• These fees will be paid to Two Men and a Truck to reimburse it for sales, use, personal property, and other taxes it pays.

27.  Renewal Fee:  10% of the franchise fee charged to new franchisees at the time of renewal (the fee is 20% if you do not timely renew)

• Due Date:  Paid by ACH on the date of renewal.

• This fee must be paid if you renew your Franchise Agreement.

28.  Fee for Adding a Person as a Franchisee or as a Principal of the Franchisee:  12½% of the franchise fee charged to new franchisees at time of addition for each person added

• Due Date:  Before person is added and before training has started for that person.

• This fee must be paid for each person you add as a franchisee or principal of your franchise.

29.  Transfer/Marketing Area Division Fee:  25% of the franchise fee charged to new franchisees at the time of transfer

• Due Date:  Before transfer and before training of proposed transferee.

• This fee must be paid if you transfer your franchise or divide your Marketing Area.

30.  Fees for Additional Training and Meetings:  $200 to $1,100 for registration fees for meetings; $500 to $1,200 per person per day, plus travel and living expenses of training personnel for additional training

• Due Date:  Before additional training.

• Two Men and a Truck may charge fees, including a reasonable per diem fee or registration fees for attending additional training or meetings.

31.  Fees for Administering National Accounts:  fixed fees of $20 to $100 for each service or 3% to 5% of the revenue from the National Account

• Due Date:  On receipt of payment from the National Account.

• These fees may change depending on the costs incurred in administering the National Accounts.

32.  Fees for Administering National Programs – Value Flex:  1% of value of materials being moved and 5% to 6% of the revenue from the move

• Due Date:  On receipt of payment from the customer.

• Two Men and a Truck’s Value Flex Program is currently the only National Program.

• The 1% of value charge is to cover potential damages. The 5% to 6% of revenue charge is for administrative expenses and capital expenditures.

33.  Value Flex Program – Container Lease Payments:  one-time payment of $4,900 to $6,600 for each container

• Due Date:  On signing a Value Flex Program Hub Addendum.

• If you participate in this Program, you must pay this fee for each container you acquire from Two Men and a Truck.

34.  Vendor Product Testing Fee:  actual out-of-pocket cost, plus $125 per hour for evaluation

• Due Date:  On receipt of Two Men and a Truck’s invoice.

35.  Liquidated Damages:  $100 to $4,000

• Due Date:  Any charges will be paid by ACH transfers on the 5th business day following the invoice date.

36.  Indemnification for Amounts Paid to Resolve Franchisee’s Disputes:  varies under the circumstances

• Due Date:  On receipt of Two Men and a Truck’s invoice.

37.  Internet Access Fees and Third-Party Software License Fees:  $1,500 to $6,600 per year

• Due Date:  As incurred.

• In order to use Two Men and a Truck’s Automation Systems, you must have access to the Internet. Also, you must acquire some third-party software for use in your business (for example, Elogs software).

38.  Holdback Amount for Customer Claims:  an amount determined by Two Men and a Truck based on your customer damage history for previous two years and any known current damage issues

• Due Date:  Paid by ACH five days before expiration or termination.

• You must pay this amount if your franchise is expiring or terminating.

• This amount will be held by Two Men and a Truck for six months and used to resolve any customer disputes. The balance will be returned to you.