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Considering a Two Men and a Truck Franchise? Don’t Overlook These 32 Important Franchise Fees

by Franchise Chatter on May 31, 2017

in Franchise Fees, Moving Related Franchise



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If you are considering a Two Men and a Truck franchise, don’t get blindsided by these 32 important franchise fees (from the initial franchise fee, to the royalty fee, to 30 other fees found in Items 5 and 6 of Two Men and a Truck’s 2017 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, although some pre-designed Marketing Areas will exceed 420,000 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 420,000. 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:  $15,000 to $30,000

  • The initial franchise fee for a mini-market franchise will vary based on the population of the Marketing Area as follows:  if the Marketing Area has 75,000 or less in population, the initial franchise fee is $15,000; if the Marketing Area has between 75,001 to 100,000 in population, the initial franchise fee is $20,000; and if the Marketing Area has between 100,001 and 200,000 in population, the initial franchise fee is $30,000.
  • 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 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.

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 Customer Relationship Center (CRC) Services:  $1,000 per month, plus a $35 per transaction fee for each completed move originating from the CRC

  • 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 new franchisees and are being phased-in as a required service for all existing franchisees through 2018.

10.  Records and Bookkeeping Fees:  $200 to $500 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.

11.  Risk Management and Safety Services Fees:  $2,000 to $3,000 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.

12.  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 increase the percentage of Gross Sales to 3% in some circumstances.

13.  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 require you to spend some or all of these amounts on advertising methods specified by it.

14.  Advertising Cooperative:  as assessed by cooperative

  • Due Date:  As assessed.
  • Cooperatives can impose assessments for advertising of up to 2% of Gross Sales.

15.  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.

16.  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.

17.  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.

18.  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.

19.  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.

20.  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.

21.  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.
  • Payments relating to Participation in Captive Insurance Program.
  • Paid by ACH transfers on the last business day of the month in which they are incurred.

22.  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.

23.  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.

24.  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.

25.  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.

26.  Fees for Additional Training and Meetings:  $125 to $900 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.

27.  Fee for Administering National Accounts or National Programs:  5% to 10% of each payment you receive from the National Account or in connection with the National Program

  • Due Date:  On receipt of payment from the National Account or in connection with the National Program.
  • Two Men and a Truck does not currently charge any fees for administering these programs.

28.  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.

29.  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.

30.  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.

31.  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, bookkeeping software).

32.  Holdback Amount for Customer Claims:  1.5% of Gross Sales for the preceding calendar month

  • 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.


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