FDD Talk 2021: Units Moving and Portable Storage Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Units Moving and Portable Storage’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 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 22 traditional franchised locations and 3 affiliate locations (separately stated) that were open and in operation for the entire 2020 calendar year

• 2020 average, median, maximum, and minimum annual revenues, annual direct operating expense (real estate expenses, labor costs, marketing/advertising, royalty, other expenses), annual gross profit, and annual gross profit margin for the 17 traditional franchised locations and 3 affiliate locations (separately stated) that were open and in operation for the entire 2020 calendar year and that submitted the financial information the franchisor requested

Section I – Background Information

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

Named to Inc. 5000 List

1.  In late October 2020, Units Moving and Portable Storage announced that it was No. 4332 on Inc. magazine’s annual 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment – its independent small businesses. Microsoft, Dell, Domino’s Pizza, Pandora, Timberland, LinkedIn, Yelp, Zillow, and many other well-known names gained their first national exposure as honorees on the Inc. 5000.

2.  Michael McAlhany, founder and CEO of Units Moving and Portable Storage, said, “Being recognized by Inc. as one of the fastest-growing private companies in America is a real honor. We have a best-in-class operation with hard-working, passionate franchisees, and an experienced corporate team committed to helping our local owners grow. This commitment is exercised daily helping the Units brand continue to expand on both a national and global level.”

3.  Not only have the companies on the 2020 Inc. 5000 been very competitive within their markets, but the list as a whole shows staggering growth compared with prior lists as well. The 2020 Inc. 5000 achieved an incredible three-year average growth of over 500 percent, and a median rate of 165 percent. The Inc. 5000’s aggregate revenue was $209 billion in 2019, accounting for over 1 million jobs over the past three years.

4.  Scott Omelianuk, editor-in-chief of Inc. magazine, said, “The companies on this year’s Inc. 5000 come from nearly every realm of business. From health and software to media and hospitality, the 2020 list proves that no matter the sector, incredible growth is based on the foundations of tenacity and opportunism.”

Expands Internationally

5.  In early November 2020, Units Moving and Portable Storage announced that it was expanding internationally. Through a partnership with World Franchise Associates, the world’s most comprehensive portfolio of international franchise development opportunities, Units will seek out franchisees worldwide. Units offers commercial and residential customers best-in-class containers and a hassle-free method for moving or storing personal belongings. Currently, Units Storage and Service Centers reach over 800 cities throughout the United States.

6.  Michael McAlhany, CEO of Units Moving and Portable Storage, said, “We’re incredibly excited to start growing internationally. We have no doubt our business model and service offering will translate to success for franchisees across the globe. It is an extremely scalable model with a tremendous ROI that provides both B2B and B2C business opportunities.”

8.  The moving and portable storage industry continues to grow and find success. Even during slower economic times, the need for moving and storage services remains strong. The flexibility of the Units Moving and Portable Storage model gives both consumers and businesses a local solution that works with their needs and provides a necessary service during these uncertain times.

9.  As a result of their partnership with World Franchise Associates, there are now Units franchise opportunities available across Asia, Europe, the Middle East, and Australia. International expansion markets are now available in the following countries and regions: Australia, Cambodia, China, France, Hong Kong, Indonesia, Ireland, KSA, Kuwait, Malaysia, Myanmar, New Zealand, Philippines, Qatar, Singapore, South Africa, Taiwan, Thailand, United Arab Emirates, United Kingdom, Vietnam, and Scandinavia.

10.  Units’ ideal candidates can manage a small team and hold them accountable for the daily activities, with many of the responsibilities able to be handled remotely. Units is also looking for empire builders who are looking to grow their portfolio with a proven model of success. While Units is expanding internationally, there are key markets still available in major metropolitan areas across the U.S.

Opens New Location in Greater New Orleans Area

11.  In mid-March 2021, Units Moving and Portable Storage opened its newest location in Slidell, Louisiana, in the New Orleans Metro area. To kick off the grand opening, owners Sam Caruso, Mike Noto, and Mike Pisciotta hosted a St. Patrick’s-themed celebration that was true to Louisiana tradition, with Irish and Italian offerings. Noto said, “Slidell’s annual St. Patrick’s Day Parade was canceled due to the pandemic, but our kickoff celebration will take its cues. Join us for green beer, corned beef and cabbage, popular Italian dishes, and traditional hot dogs and burgers. We owe tremendous thanks to St. Margaret Mary Men’s Club for preparing the food and for supporting our local business.”

12.  As deeply involved members of their community, Caruso, Pisciotta, and Noto are excited to offer a much-needed service to friends and neighbors. Units of Greater New Orleans began limited operations late last year and received a record-breaking response. Caruso, president and CEO at Units of Greater New Orleans, said, “We know people in our community need a storage and moving option they can rely on. When people call us, they’re not calling a national 1-800 number. They’re calling someone who lives and works in this community. We care about this community. We need local trust to succeed, and we will work hard to earn that trust.”

13.  Units Moving and Portable Storage offers high-quality constructed containers featuring barn-style doors and all-steel construction. The Units container is clean, weather-resistant, spacious, and available in 16-ft. lengths. The Units Moving and Portable Storage robotic delivery system is the most technologically advanced in the industry, virtually eliminating any shift in contents when lifting containers on and off transport vehicles. The container may be placed in a Units Moving and Portable Storage service center or at the customer’s desired location.

14.  “It’s important for people to know their belongings are safe and easy to access. We provide a hyper-local service that offers customers the peace of mind they deserve. Whether someone calls Units for storage during a home renovation, for a move, or for festival and parade floats and gear, our customers can trust their items are in good hands,” Pisciotta said.

Company History

15.  Units Moving and Portable Storage was founded in 2004 by Michael McAlhany in South Carolina. At the time, the mobile storage and moving industry was just emerging and McAlhany decided to start Units because he saw the industry’s potential growth. McAlhany’s vision was to provide solutions for all kinds of space issues and eliminate the usual frustrations associated with moving a home or relocating a business.

16.  Franchising began a year after McAlhany started Units. Today, Units Moving and Portable Storage services over 800 cities around the United States.

Entrepreneur’s Franchise 500

17.  Units Moving and Portable Storage did not rank on Entrepreneur’s 2021 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 2021 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

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

2020

• Outlets at the Start of the Year:  28
• Outlets at the End of the Year:  41
• Net Change:  +13

Company-Owned

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

2020

• 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, 2021 FDD) and Analysis

• This Item sets forth historical Gross Sales data for certain franchisee-owned Units markets achieved for the 2020 calendar year.

• As of December 31, 2020, there were 44 Units locations in operation. Thirty-eight 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 38 Traditional Franchised Locations, 22 were open and in operation for the entire 2020 calendar year.

• Part 1 sets forth the Average Annual Revenues for the 22 Traditional Franchises during the 2020 calendar year, and Part 2  sets forth the Average Annual Revenues for the 3 Affiliate Locations during the 2020 calendar year.

• Seventeen of the Traditional Franchises provided the expense information the franchisor requested for the 2020 calendar year. Part 3 sets forth certain Revenue and Expense information for these 17 Traditional Franchises for the 2020 calendar year, and Part 4 sets forth certain Revenue and Expense information for the 3 Affiliate Locations for the 2020 calendar year.

• The franchisor has not audited or independently verified this information.

Part 1 – Average Annual Franchisee Revenue Information for the 2020 Calendar Year

• “Annual Revenues” is defined as the total gross revenues generated from 22 Traditional Franchised Locations and 3 Affiliate Locations with operations during the complete 12 months of the 2020 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, and (c) 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.