Detailed Estimates of Units Moving and Portable Storage Franchise Costs Based on Item 7 (Estimated Initial Investment) of Units’ 2018 Franchise Disclosure Document
1. Franchise Fee: $55,500 to $222,000
2. Real Estate/Rent: $60,000 to $75,000
- 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. As your business grows, 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.
- The estimate calculations are based on a 20,000-sq. ft. facility with the rate based on published industrial statistics of U.S. average price of Warehouse and Distribution of $5.26 per sq. ft.
3. Initial Inventory: $1,500 to $3,000
- You must purchase an initial inventory of packing and moving supplies such as boxes, locks, furniture pads, hand trucks, mattress covers, packing paper, hooks and rollers, 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. Units Containers: $192,000 to $456,000
- Units Containers are constructed based on the franchisor’s proprietary designs and specifications and are available in two sizes, 8’ x 8’ x 16’ or 8’ x 8’ x 12’. Going forward the minimum quantity per order is 12 containers.
- Currently, Units Containers may be obtained through purchase from the franchisor. You may obtain third party financing for the purchase of Units 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 to lease or finance the purchase of the Units Containers, while the high estimate reflects your estimated cost to purchase the required number of Units Containers outright.
- The down payment and lease or finance agreement terms may vary substantially based on the provider and your credit score.
- The franchisor makes no representations or warranties regarding your ability to enter into a lease or financing agreement, which will depend on factors such as the availability of third party suppliers and your creditworthiness.
- Presently, the cost to purchase a Units Container is approximately $3,200 to $3,800 per container. The franchisor reserves the right to change the cost of Units Containers and your purchasing requirements periodically.
5. Units Moving and Portable Storage Delivery Systems and Trucks: $109,322
- In addition, you will need to purchase at least one suitable vehicle to transport the containers and Units Moving and Portable Storage Delivery System from the franchisor. The item above reflects the estimated cost to lease one forklift, truck, and associated freight costs which meet the franchisor’s standards and specifications.
6. Signage: $200 to $5,000
- This range includes the cost of all signage used in the Franchised Business.
- You will need to display 2 vinyl side panel signs on each Units container. You will also need to obtain vinyl signs for each container that are used for identification purposes.
- The franchisor provides you with its specifications for the placement of all signage on containers, the premises of your warehouse facility, and truck(s).
- Your costs will vary based on your initial inventory of containers and trucks, the size and location of the Franchised Business, and local wage rates.
7. Grand Opening Advertising: $10,000
- You must spend a minimum of $10,000 on Grand Opening Advertising during the first 3 months of operation. You may choose to spend more.
8. 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.
9. Start-Up Costs: $30,000 to $200,000
- The franchisor recommends that you have a minimum amount of money available to cover operating expenses, such as employees’ salaries, insurance, office supplies, licensing, professional fees, 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.
10. Total: $460,022 to $1,083,322
- 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 ten years of 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.