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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Units Moving and Portable Storage’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average and median annual revenue; number of markets above $1 million; above $725,000, below $1 million; above $500,000, below $725,000; and below $500,000 for the 20 traditional franchises and 3 affiliate locations (separately stated) that were open and in operation for the entire 2019 calendar year
- 2019 average, median, maximum, and minimum annual revenues, annual direct operating expense, annual gross profit, and annual gross profit margin for the 20 traditional franchises and 3 affiliate locations (separately stated) that were open and in operation for the entire 2019 calendar year
Section I – Background Information
21 Things You Need to Know About the Units Moving and Portable Storage Franchise
Celebrates Strong Franchise Growth in 2019
1. At the end of December 2019, Units Moving and Portable Storage announced that the company’s growth had gained momentum, with expansion spreading into 2020. Units added seven new franchisees in 2019 and eight new offices. Two more offices were scheduled to open in the first quarter of 2020 in Columbus, Ohio and Jacksonville, Florida.
2. According to Matt Dillon, director of franchise development for Units Moving and Portable Storage, “Over the past two years, Units locations have grown in number by about 15 percent. Our franchisees have seen strong double-digit percentage increase in revenue. We’ve added a significant number of new containers to our inventory.”
3. New locations included offices in Austin, Baltimore, Northern Chicago, Northern Virginia, Denver, Miami, and Nashville. According to Dillon, the upward trajectory of Units Moving and Portable Storage is due to the company’s simple, effective business model and experienced team.
4. Dillon added, “Portable storage and moving is such a convenient solution that this segment of the moving and storage industry continues to grow exponentially. We provide the ability to have the container delivered right onsite so that customers don’t have to rent a vehicle or a truck to take their belongings to a storage facility. This makes it much easier as well for customers who just need temporary onsite storage and moving services.”
5. What continues to separate Units from competitors, Dillon said, is that its offices are locally owned and operated by franchisees enabling hands-on customer service. “It sets us apart from the national container providers because they are all run corporately out of a headquarters and aren’t as familiar with each individual marketplace,” said Dillon. “Our customers really appreciate that face-to-face, one-on-one, customer-centric approach.”
6. Another differentiator assisting with the company’s growth is that Units can deliver containers to places other companies cannot. Dillon added, “We utilize a maneuverable, remote-controlled system to drop our containers off and move them onto the customer’s property exactly where they want the containers to go.”
7. By staying the course, Dillon predicts Units Moving and Portable Storage will open another 10 to 12 new offices in 2020 and that its existing locations will continue to see double-digit percentage growth in revenue.
Launches National Community Engagement Initiative
8. At the beginning of December 2019, Units Moving and Portable Storage launched a new initiative to encourage greater company relations with Wounded Warrior Project and other charities that help their local communities thrive. Michael McAlhany, CEO of Units Moving and Portable Storage, announced the new initiative, with guidelines for franchise owners to work with three national charities at a local level.
9. Along with Wounded Warriors, Units Moving and Portable Storage owners have been provided engagement roadmaps to work with their local branches of Habitat for Humanity and Toys for Tots.
10. McAlhany said, “We take community engagement seriously at Units Moving and Portable Storage. We didn’t just want to send our franchise owners a vague directive to go find charities to support. Instead, we worked with national organizations to learn best practices for our franchisees to reach out to their local chapters in order to develop the relationship.”
11. The company began the vetting process in March of 2019, with a focus on charities that helped veterans, children, and people in need of housing. Starting with a preliminary list of nine charities, the company identified eight criteria to measure the charities’ compatibility with the company’s mission.
12. “We looked at their records of financial responsibility and accountability, their core principles, their locations in relation to our franchise owners and their likelihood of needing our donated storage containers,” McAlhany continued. “We are very satisfied with Wounded Warrior Project, Habitat for Humanity and Toys for Tots as charities our franchise owners can engage with for years to come.”
13. Units Moving and Portable Storage kicked off the initiative in December with a $5,000 donation to Wounded Warrior Project at their franchise leadership conference in Nashville, Tennessee. Michael Linnington, retired Lieutenant General with the U.S. Army, accepted the check on behalf of Wounded Warrior Project.
14. Linnington said, “At Wounded Warrior Project, we believe that every warrior has a next mission. Our services in mental health, career counseling and long-term rehabilitative care are designed to help warriors on their path to achieving their highest ambition. This donation will help us transform the lives of warriors, ensuring they are empowered, engaged and employed in their community.”
Revs Up Marketing Effort with NASCAR
15. In late October 2019, Units Moving and Portable Storage partnered with StarCom Racing teams as a co-primary for the First Data 500 on Sunday, October 27, at the famed Martinsville Speedway “paperclip.” It is a marketing first for Units Moving and Portable Storage as the company looks for new ways to introduce its high-quality constructed containers featuring barn-style doors and all-steel construction to one of the largest audiences in the world.
16. The First Data 500 is a Monster Energy NASCAR Cup Series stock car race held at Martinsville Speedway in Ridgeway, Virginia. The race has been run in every NASCAR Cup Series since 1949, making it the oldest NASCAR race still run today. It is the seventh race of ten in the Monster Energy NASCAR Cup Series playoffs, and the first race in the “Round of 8” of the current playoff format.
17. Michael McAlhany, CEO of Units Moving and Portable Storage, said, “We are very excited to partner with StarCom Racing as a co-primary sponsor at the First Data 500 in Martinsville this Sunday. NASCAR fans are incredibly loyal to their sport so we hope this sponsorship will give us the chance to earn their loyalty as well.”
18. Matthew Kohler, president of StarCom Racing, added, “As a race team, we work hard to put a high-quality product on the track each week. Partnering with a company like Units Moving and Portable Storage that offers high-quality containers for our fans in need of portable storage, aligns with our team’s core values.”
Company History
19. Units Moving and Portable Storage was founded in 2004 by Michael McAlhany in South Carolina. At the time, use of portable storage units was starting to become more common and McAlhany decided to start a company to offer these services. The company’s mission is to provide personal, mom-and-pop-type customer service and supply the most innovative and highest-quality equipment.
20. A year after starting Units, McAlhany started franchising the concept. Today, Units Moving and Portable Storage services over 500 cities in North America with additional locations scheduled to open in the near future.
Entrepreneur’s Franchise 500
21. Units Moving and Portable Storage did not rank on Entrepreneur’s 2020 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 2020 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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2017
- Outlets at the Start of the Year: 21
- Outlets at the End of the Year: 20
- Net Change: -1
2018
- Outlets at the Start of the Year: 20
- Outlets at the End of the Year: 24
- Net Change: +4
2019
- Outlets at the Start of the Year: 24
- Outlets at the End of the Year: 28
- Net Change: +4
Company-Owned
2017
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2018
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2019
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- This Item sets forth historical Gross Sales data for certain franchisee-owned Units markets achieved for the 2019 calendar year.
- As of December 31, 2019, there were 31 Units locations in operation. Twenty-five operated as traditional franchises (“Traditional Franchises”), 3 operated as fractional franchises (“Fractional Franchises”), and 3 operated as affiliate locations (“Affiliate Locations”).
- Each Location offered similar products and services as would generally be offered by a typical Units Moving and Portable Storage business offered under the disclosure document.
- Of the 25 Traditional Franchised Locations, 20 were open and in operation for the entire 2019 calendar year.
- Part 1 sets forth the Average Annual Revenues for the 20 Traditional Franchises during the 2019 calendar year, and Part 2 sets forth the Average Annual Revenues for the 3 Affiliate Locations during the 2019 calendar year.
- Sixteen of the Traditional Franchises provided the expense information the franchisor requested for the 2019 calendar year. Part 3 sets forth certain Revenue and Expense information for these 16 Traditional Franchises for the 2019 calendar year, and Part 4 sets forth certain Revenue and Expense information for the 3 Affiliate Locations for the 2019 calendar year.
- The franchisor has not audited or independently verified this information.
Part 1 – Average Annual Franchisee Revenue Information for the 2019 Calendar Year
- “Annual Revenues” is defined as the total gross revenues generated from 20 Traditional Franchised Locations and 3 Affiliate Locations with operations during the complete 12 months of the 2019 fiscal year.
- 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 Franchisee in full or partial satisfaction of the price of any services and products offered in connection with the Business.
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