Units Moving and Portable Storage Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
1. Franchise Fee: $55,500 to $222,000
- The low end of this estimate represents an Initial Franchisee Fee for a population of 300,000, and the high end represents and Initial Franchise Fee for a population of 1,200,000.
2. Real Estate: $15,000 to $50,000
- Includes the costs to acquire the required real estate, including a security deposit and tenant improvements.
- You must lease or otherwise acquire a suitable facility for the operation of the Franchised Business.
- During your first year of operations, you will need a warehouse facility with a minimum of 20,000 square feet of space. Additional warehouse space may be needed as your business matures.
- It is extremely difficult to estimate lease acquisition costs because of the wide variation in these costs between locations. Lease costs will vary based upon the square footage leased, the cost per square foot, and required maintenance costs.
- The franchisor assumes that you will have to pay the first month’s rent upfront and put down one month’s rent as a security deposit. The rent you pay is typically not refundable, but your security deposit may be under certain circumstances.
3. Technology Systems and Initial Inventory: $7,500 to $10,000
- You must acquire the information technology, equipment, and services that the franchisor designates. In addition, you must purchase an initial inventory of packing and moving supplies such as boxes, locks, furniture pads, hand trucks, mattress covers, packing paper, uniforms, and other supplies and equipment.
- These costs will vary based upon the size and location of the Franchised Business, time of year that you will begin operations, suppliers, and other related factors.
4. Containers: $261,000 to $348,000
- Containers are constructed based on the franchisor’s designated designs and specifications and are available in two sizes, 8’ x 8’ x 16’ or 8’ x 8’ x 12’. The minimum quantity per order is currently 12 containers.
- Containers must be obtained through purchase from the franchisor. You may obtain third party financing for the purchase of Containers, but the franchisor does not offer direct financing or guarantee your obligations under any lease or financing agreement.
- The low figure above estimates your cost for an initial purchase of 90 Containers, while the high estimate reflects your estimated cost for an initial purchase of 120 Containers.
- Presently, the cost to purchase Containers is approximately $2,700 to $2,900 per Container. The franchisor reserves the right to change the cost of Containers and your purchasing requirements periodically.
5. Container Freight and Shipping: $108,000 to $204,000
- This range includes the estimated delivery cost to your franchise location. These costs will vary depending on your geographic location as well as then-current transportation costs.
6. Units Moving and Portable Storage Delivery System and Forklift: $148,000 to $233,000
- You will need to purchase the Units Moving and Portable Storage Delivery System from the franchisor to transport the containers.. The item above also reflects the estimated cost to purchase one forklift and associated freight costs which meet the franchisor’s standards and specifications.
7. Signage: $200 to $5,000
- This range includes the cost of all signage used in the Franchised Business.
- The franchisor provides you with its specifications for the placement of all signage on the premises of your warehouse facility.
- Your costs will vary based on the size and location of the Franchised Business.
8. Grand Opening Advertising: $10,000
- You must spend a minimum of $10,000 on Grand Opening Advertising during the period leading up to the opening of the Franchised Business in addition to your required local advertising.
9. Training: $1,500 to $3,000
- The tuition fee for initial training is included in the Initial Franchise Fee, but you must pay for transportation and expenses for food and lodging while attending training.
- The total cost will vary depending on the number of people attending, how far you travel, and the type of accommodations you choose.
10. Additional Funds: $80,000 to $200,000
- The franchisor recommends that you have a minimum amount of money available to cover operating expenses, such as rent, employees’ salaries, insurance, office supplies, licensing, professional fees, local advertising expenses, and other known or unknown operating expenses during the first three months after opening.
- However, the franchisor cannot guarantee that its recommendation will be sufficient. Additional working capital may be required.
11. Total: $686,700 to $1,285,000
- These estimates are inclusive of the initial franchise fee.
- In compiling this chart, the franchisor relied on its experience as a franchisor and its Affiliates’ collective experience in operating substantially similar businesses.
- The amounts shown are estimates only, and may vary for many reasons, including the size of your Franchised Business, the capabilities of your management team, where you locate your Franchised Business, market conditions, and your business experience and acumen.
- These figures are estimates only, and the franchisor cannot guarantee that you will not have additional expenses in starting the Franchised Business.