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FDD Talk: What You Need to Know About the You Move Me Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

Last updated on August 29, 2019 by Franchise Chatter Leave a Comment
in FDD Talk: Service Franchises, Franchise Earnings, Moving Related Franchise



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

  • Section I – Background information on the You Move Me franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a You Move Me franchise, based on Item 7 of the company’s 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a You Move Me franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of You Move Me’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2014, 2015, and 2016 average gross revenue, median gross revenue, and average job size for You Move Me franchisees operating in the United States for 12-24 months, greater than 24 months, at least 1 day, and franchisees that converted existing businesses to franchises, respectively
  • 2014, 2015, and 2016 average gross revenue, median gross revenue, and average job size for You Move Me franchisees operating in Canada for 12-24 months, greater than 24 months, and at least 1 day, respectively

Section I – Background Information

13 Things You Need to Know About the You Move Me Franchise

San Francisco Location Partners with Tech Startup to Grow Business

1.  You Move Me of San Francisco has been working with Eden – the leading platform for office managers to secure office cleaning, office moving, handyman services, and other facilities services – since the tech startup launched in 2015. Over the summer of 2017, Eden said that it was expanding its services to Los Angeles and Austin.

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2.  Ulises Alcocer, general manager at You Move Me San Francisco, said, “Participating in the Eden office services marketplaces has helped us grow our business in San Francisco by 10-15 percent, and we expect a similar boost in L.A. and Austin. Eden has provided us with a steady stream of high-quality business. Tons of fast-growing businesses, including technology companies, use Eden, so they have given our relatively low-tech business great access to the booming tech economy. We’re excited to continue working with Eden as it expands nationally.”

3.  There may be opportunities in the future for new You Move Me locations in Los Angeles and Austin to also join Eden’s program.

Using LinkedIn to Drive Quality Leads

4.  You Move Me started franchising in 2013 and started using LinkedIn’s services around 2016 to help the business continue its national expansion. According to You Move Me’s founder and CEO Brian Scudamore, the company initially got some interest from franchise news sources, but felt that the brand had no real way to target the people who were most interested in buying a You Move Me franchise. Scudamore said, “You Move Me had to bring the opportunity to the place where these targets were doing business and researching new opportunities – which led the company’s marketing team to LinkedIn.”

5.  You Move Me chose to use LinkedIn’s Sponsored Content to reach potential franchisees. Sponsored Content allows relevant offers and updates to appear alongside organic content in members’ LinkedIn feeds. You Move Me’s content was aimed at LinkedIn members with 10-15 years of experience in key industries, and located in geographic areas where the company wanted to establish a presence. The Sponsored Content also mentioned You Move Me’s connection to 1-800-GOT-JUNK? and also featured a personal pitch directly from Scudamore.


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6.  You Move Me also used a personal tone for LinkedIn’s InMails, which were sent to those in senior roles in the real estate industry and sales.

7.  Using LinkedIn’s services helped You Move Me attract a new audience of potential franchisees. Sponsored Content saw engagement rates three times higher than average LinkedIn benchmarks, while the InMails had a click-through rate two times the average and an open rate five times the average. Leads from LinkedIn converted at twice the rate of other leads, while traffic to the You Move Me franchise development website increased 150 percent. Scudamore said, “LinkedIn Sponsored Content and InMails have brought more potential franchise owners to our website than any other marketing campaign we’ve done.”

Highlights Exceptional Service on International Coffee Day

8.  You Move Me has always positioned itself as offering moving services with a personal touch. Being personable is so important to You Move Me, that one of its signature touches is to start every one of its moving days by bringing coffee for the customers. You Move Me says that its movers bring every customer a cup of coffee because it’s what a friend would do.

9.  On the most recent International Coffee Day (September 29), You Move Me celebrated the day by reminding customers that offering coffee was one of the features that makes its services different from other moving companies.

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Company History

10.  You Move Me was founded in 2012 by Brian Scudamore, Erik Church, Paul Guy, Laurie Baggio, and Tom Rympa. Before starting You Move Me, all of the company’s founders had been working in some capacity with Scudamore’s largest and best-known franchise, 1-800-GOT-JUNK?, which he founded in 1989.

11.  After turning 1-800-GOT-JUNK? into a multi-million dollar business, Scudamore started O2E Brands and established other home service franchises. Scudamore decided to start a high-quality moving company and came up with You Move Me along with his business partners. You Move Me provides clean, trained crews who arrive in well-marked trucks, and work under a system that emphasizes professionalism.

12.  In 2013, the company received media attention by launching 26 You Move Me moving franchises on the same day. Like all of O2E Brands’ franchises, You Move Me uses the same back end to create efficiencies. Today, there are over 40 You Move Me locations in the United States and Canada.

Entrepreneur’s Franchise 500

13.  Being a newer franchise, You Move Me has yet to rank on Entrepreneur’s annual Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of You Move Me franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on You Move Me’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

  • The financial performance information in this Item 19 is a historic financial performance representation about all of the franchises existing in the franchise system for the relevant period based upon financial information those franchisees reported to the franchisor.
  • The following charts provide information regarding Gross Revenue for franchised businesses in the United States and Canada. Canadian operations and operations in the United States are substantially similar. There are no characteristics of the Canadian outlets that differ materially from outlets being offered in the United States.
  • The charts below reflect total and average Gross Revenue for each of the first 3 years new franchised businesses and conversion franchised businesses were operated.
  • Some franchisees reported in the charts below closed during 2016.
  • For purposes of these charts, franchisees are grouped into franchised businesses open between 12 and 24 months, franchised businesses open longer than 24 months, and franchisees that converted existing businesses to franchises, and in the case of system-wide figures for all of North America, include franchised businesses that were in existence for at least 1 day in the specified calendar year.
  • Unless otherwise specified, “Gross Revenue” means the actual gross revenues invoiced to consumers for products and services.
  • The average is calculated by adding all figures and dividing by the number of figures counted. The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list.
  • Foreign exchange rates have not been applied to the figures in the charts. USA charts are reported in USD and Canadian charts are reported in CAD.

Franchised Businesses in the United States

Franchisees Operating for 12-24 Months (U.S. Dollars)

2014



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