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

• Section I – Background information on the Units Moving and Portable Storage franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Units Moving and Portable Storage franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Units Moving and Portable Storage franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned Units Moving and Portable Storage outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Units Moving and Portable Storage’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• average growth in average annual revenues over the last five years (2013-2017) for 21 Franchised Locations open as of January 1, 2013 and which have been in continuous operation through December 31, 2017

• 2017 average and median annual revenues for all 19 Traditional Franchised Locations operating as of December 31, 2017

• 2017 average, median, high, and low revenues, operating expenses, and EBITDA for all 19 Traditional Franchised Locations operating as of December 31, 2017

Section I – Background Information

15 Things You Need to Know About the Units Moving and Portable Storage Franchise

Celebrating a Year of ‘Remarkable’ Growth

1.  Units Moving and Portable Storage started 2018 by celebrating what the company says was “a remarkable year of growth, development, and prosperity in 2017.” At the time of the company’s press release, Units was operating in 12 states with more than 6,000 of its storage containers in service in more than 500 cities.

2.  Units CEO and founder Michael McAlhany said, “2017 was a remarkable year for Units Moving and Portable Storage for system growth, technological advances and hiring. We have a best-in-class operation with hard-working, passionate franchisees and an experienced corporate team, committed to helping our local owners grow.”

3.  Units added several positions in upper management at the corporate headquarters in order to advance the brand while boosting support for franchise owners. Units also increased its franchise sales team to handle increased interest from franchise candidates while adding a call center to help customers maneuver long-distance moves.

4.  The stronger corporate team helped the company grow its national footprint in 2017; Units opened new franchises in San Diego, San Antonio, Orlando, and Miami. At the time of the press release, Units had plans to add new locations in Denver, Dallas, Seattle, and Boston during the first quarter of 2018.

5.  Units Moving and Portable Storage vice president of franchise development Brad Smith said, “It’s not just the domestic market either, we are starting to see opportunities for international growth. Along with locations throughout North America, cities in Europe and Australia are under serious consideration for 2018.”

Implementing Technological Advances

6.  Units’ online marketing team worked hard in 2017 to increase the company’s Google search engine rankings to surpass key competitors. The team did this by producing more SEO-rich content on the company’s digital properties.

7.  Units developed Units Biz Hub, a proprietary software that assists franchise owners in managing their business. The system includes real-time delivery truck monitoring, customer relationship management, online consumer review management, and social media management tools so owners can organically grow their business.

8.  Units also updated its Long Distance Move Program with investments in new technology, staff, and Units Brand Containers. The company plans on adding another 100 containers to the program in 2018.

9.  A major initiative for Units in 2017 was redesigning the state-of-the-art Units Brand Container. Units enhanced the container’s roof and side walls, allowing belongings to be more secure and safe in transit and while in storage. The containers have always featured a translucent top which lets natural light enter the space.

10.  In addition to updated containers, Units redesigned its proprietary ROBO-UNIT, a high-tech robotic container transport that eliminates any shift in container contents and provides greater flexibility in placement when space is an issue.

Looking for Ideal Franchise Partners

11.  Units Moving and Portable Storage continues to grow across the United States and is currently looking for ideal franchise partners. Top candidates should have strong leadership and people skills, as well as experience in a corporate job. Additionally, Units’ most successful franchisees have a management background with an understanding of sales and marketing. Units’ minimum net worth requirement is approximately $1M with $300K in liquidity.

12.  According to Units, franchisee success is predicated upon the following key characteristics:

• Adequate capitalization and ability to obtain necessary financing for the size of the opportunity in the desired market.
• Creating a culture of long-term customer service excellence and stability within the franchisee’s territory.
• Being a leader that knows how to work within the Units franchise model framework to develop a lasting partnership with Units Franchise Group.
• Dedication to the Units core values of commitment to Excellence, Integrity, Responsibility, Respect, and Transparency.

Company History

13.  Units Moving and Portable Storage was founded in 2004 by Michael McAlhany in South Carolina. McAlhany is also the founder of Units’ sister company Extra-Room-Self-Storage. He developed the idea for Units in 2003 in response to the emerging mobile storage and moving industry. According to Units, the company’s mission is to “provide personal mom and pop type customer service and supply the most innovative and highest quality equipment.”

14.  McAlhany started franchising the Units concept in 2005 and the national network of Units Moving and Portable Storage service centers currently services over 500 cities in the United States.

Entrepreneur’s Franchise 500

15.  Units Moving and Portable Storage did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Units Moving and Portable Storage franchise costs, based on Item 7 of the company’s 2018 FDD.

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

• Please click here for detailed information on Units Moving and Portable Storage’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  23
• Net Change:  0

2016

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  24
• Net Change:  +1

2017

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  25
• Net Change:  +1

Company-Owned

2015

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  4
• Net Change:  0

2016

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  2
• Net Change:  -2

2017

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• This Item sets forth historical Gross Sales data for certain franchisee-owned Units markets, achieved between the 2013 calendar year and 2017 calendar year.

• As of December 31, 2017, there were 22 franchised locations (“Franchised Locations”) owned and operated by 19 franchisees. 19 of the Franchised Locations are operated as traditional franchises (“Traditional Franchises”) and 3 are operated as fractional franchises (“Fractional Franchises”).

• Each Franchised Market offered similar products and services as would generally be offered by a typical Units Moving and Portable Storage business offered under the disclosure document.

• Part 1 sets forth the Average Growth in Average Annual Revenues over the last five years for 21 Franchised Locations open as of January 1, 2013 and which have been in continuous operation through December 31, 2017 (the “Measurement Period”).

• Part 2 sets forth the Average Annual Revenues of all 19 Traditional Franchised Locations achieved during the period from January 1, 2017 to December 31, 2017. Part 2 excludes the 3 Fractional Franchises.

• Part 3 sets forth certain Revenue and EBITDA information obtained by 19 Traditional Franchises during the 2017 calendar year. Part 3 excludes the three Fractional Franchises.

• Units has not audited or independently verified this information.

Part 1 – Average Growth in Average Annual Revenues (%)

• “Annual Revenues” is defined as the total income generated from operations over a year time period. This includes income from the rental of portable storage and moving containers, deliveries associated with container rental including local moves, container and contents coverage, and ancillary moving and storage supplies.

• Annual Revenues exclude (a) all refunds made in good faith, (b) any sales and equivalent taxes that are collected by a franchisee for or on behalf of any governmental taxing authority and paid thereto, (c) and the value of any allowance issued or granted to any customer that is credited by the franchisee in full or partial satisfaction of the price of any services and products offered in connection with the Business.

• “Average Growth in Average Annual Revenues (%)” is determined by calculating the sum of the Annual Revenues for the 22 included Franchised Locations for the stated year, subtracting it by the sum of Annual Revenues for the 22 included Franchised Locations from the prior year, and dividing that number by the sum of Annual Revenues for the prior year.

• Part 1 does not include any expense information, including the costs of sales, operating expenses, or other costs or expenses that you will incur as a franchisee and that will be deducted from the gross revenue.