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

• Section I – Estimated initial investment (franchise costs) for a Units Moving and Portable Storage franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Units Moving and Portable Storage franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – 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 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

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

• Section V – Presentation and analysis of Units Moving and Portable Storage’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• number of Units franchises with annual sales over $2 million; $1,000,000 to $1,999,999; $750,000 to $999,999; $500,000 to $749,999; and $250,000 to $499,999 for the calendar years of 2021 (28 traditional Units franchises), 2020 (22 traditional Units franchises), and 2019 (18 traditional Units franchises)

• 2021 average and median annual revenues for the 3 affiliate Units locations that were open and in operation for the entire 2021 calendar year

• 2021 average 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 25 traditional Units franchises (open 12-24 months, open 24-48 months, open 48 months and longer, and all) and 3 affiliate Units locations (separately stated) that were open and in operation for the entire 2021 calendar year and that submitted the financial information the franchisor requested

• Section VI – Key ratios, comparables, computations, and analyses for the Units Moving and Portable Storage franchise opportunity (exclusive content for Platinum subscribers)

Section I – Units Moving and Portable Storage Franchise Costs

• Units Moving and Portable Storage franchise costs, based on Item 7 of the company’s 2022 FDD:

• Franchise Fee:  $55,500 to $222,000
• Real Estate:  $15,000 to $50,000
• Technology Systems and Initial Inventory:  $7,500 to $10,000
• Containers:  $261,000 to $348,000
• Container Freight and Shipping:  $108,000 to $204,000
• Units Moving and Portable Storage Delivery System and Forklift:  $148,000 to $233,000
• Signage:  $200 to $5,000
• Grand Opening Advertising:  $10,000
• Training:  $1,500 to $3,000
• Additional Funds:  $80,000 to $200,000
• Total Estimated Units Moving and Portable Storage Franchise Costs:  $686,700 to $1,285,000

Section II – Units Moving and Portable Storage’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Units Moving and Portable Storage’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $55,500 for a Protected Territory consisting of 300,000 people
• Royalty Fee:  8% of Gross Sales per month
• National Advertising Fund:  2% of Gross Sales per month
• Local Advertising:  $3,000 to $4,500 per month
• Cooperative Advertising:  any portion or all of the National Advertising Fund Contribution may be re-designated for Cooperative Advertising

Section III – Number of Franchised and Company-Owned Units Moving and Portable Storage Outlets

Franchised

2019

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  25
• Net Change:  +2

2020

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  31
• Net Change:  +6

2021

• Outlets at the Start of the Year:  31
• Outlets at the End of the Year:  44
• Net Change:  +13

Company-Owned

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

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section IV – Background Information on the Units Moving and Portable Storage Franchise

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

Las Vegas Franchisee Forms Strategic Partnership with Coldwell Banker Premier Realty

1.  At the end of November 2021, Units Moving and Portable Storage of Las Vegas announced a new partnership with Coldwell Banker Premier Realty. The franchise is now a Premier Service Provider for the real estate company which was established in 1998 and has grown to include more than 275 real estate agents. The two companies will combine resources to provide exceptional moving and storage solutions for clients throughout southern Nevada.

2.  Martin Mapes, owner of Units of Las Vegas, said, “This is a great opportunity for Units because it puts our brand in front of a rotating supply of individuals and families who are in need of both long-term and short-term storage solutions. Our office opened less than a year ago, and this partnership will go a long way in helping us grow and reach our potential.”

3.  Units of Las Vegas is one of two local partners selected to service the storage needs of the greater Las Vegas area. Coldwell Banker Premier Service Providers are chosen through extensive research in an effort to improve the home ownership experience for clients.

4.  Annie Manderscheid, vice president of premier services for Coldwell Banker Premier Realty, added, “Units has established itself as a trusted moving and portable storage company in the Las Vegas area. We are so pleased to form this alliance that we know will provide a true benefit to our clients. We hope to see the relationship continue for many years to come.”

Home Renovation Boom Increases Demand for Short-Term Storage

5.  At the beginning of June 2022, Units Moving and Portable Storage stated that the Great Renovation is in effect across the country. Tight housing markets are giving way to skyrocketing remodeling projects. Residential renovations are expected to exceed $380 billion by the middle of next year – up nearly 10% from 2021.

6.  Many who originally wanted to find a new home have decided to stay put and renovate. Here’s why:

• Fewer homes to buy. Low housing inventory has become frustrating for those looking to purchase or relocate, and they are looking to fall in love with their home again.
• Rising prices. Housing prices aren’t the only thing increasing. Mortgage rates are at their highest level since 2009, recently hitting 5.5%, up more than two percentage points since the first of the year.
• More equity available. The upside of increased housing prices is higher equity available to many homeowners. Many are choosing to pull cash out of their home and spend it on a renovation.

7.  There are a few challenges for today’s renovation projects; thanks to labor shortages and supply chain disruptions, you are likely to experience long lead times and delays. Another problem is storage. During renovations, especially those that last longer than anticipated, homeowners need affordable, convenient storage solutions. Personal items and furnishings need to be packed up to provide ample space for the work to be done, and to avoid construction dust and potential damage to belongings.

8.  Units Moving and Portable Storage has seen an increase in homeowners who are renovating and looking for portable storage containers to keep right on their property, where it can stay for weeks or months depending on the length of the renovation project.

9.  According to Wade Malloch, Units operations manager, “Our customers appreciate the convenience of having their belongings safely and securely packed away right on site, in their driveway or backyard. This way, if the renovation goes a bit longer than anticipated, they have easy access to get to their things when they need them. Plus, when the renovation is complete, homeowners have the flexibility to move their belongings in at their pace, on their timeline.”

Donates to Massive BMW Charity Pro-Am

10.  In mid-June 2022, Units Moving and Portable Storage took part in the BMW Charity Pro-Am event from June 6-12. CEO Michael McAlhany said, “This is a major multi-day event we’re very excited to be a part of. I’m so glad we can be a part of the golf tournament by providing storage containers to keep operations running smoothly and allowing ease of access for the incredible volunteers.”

11.  The BMW Charity Pro-Am is part of the Korn Ferry Tour. It’s a three-day event where amateurs, celebrities, and professionals rotate between two courses: The Thornblade Club in Greer and The Carolina Country Club in Spartansburg. Typically, this event draws 40,000 spectators with 20% traveling from out of town.

12.  Units Moving and Portable Storage of Greenville is providing four containers. Three will go to the Thornblade Club and one container will be used at The Carolina Country Club. The containers will be used to store volunteer uniforms, volunteer items, signage, and operational equipment.

Company History

13.  Units Moving and Portable Storage was founded in 2004 by Michael McAlhany in South Carolina. The moving and storage industry was just getting started and McAlhany saw the potential. He wanted to provide personal customer service and supply the most innovative and highest quality equipment. Additionally, McAlhany wanted Units to offer solutions for any kind of space issues and eliminate the typical struggles that accompany moving to a new home or office.

14.  Just a year after starting Units, McAlhany began franchising. The concept was a hit, but the company’s growth has been relatively slow. Today, the Units Moving and Portable Storage network services over 500 cities in North America.

Entrepreneur’s Franchise 500

15.  Units Moving and Portable Storage ranked No. 353 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Units Moving and Portable Storage Franchise (Item 19, 2022 FDD)

• This Item sets forth historical Gross Sales data for certain franchisee-owned Units markets achieved for the 2021 calendar year.

• As of December 31, 2021, there were 47 Units Businesses in operation, including 44 franchised locations and 3 affiliate locations (the “Affiliate Locations”). Three of the 44 franchised locations operated as fractional franchises (“Fractional Franchises”) and the remaining 41 franchised locations operated as traditional franchises (“Traditional Franchises”).

• Each Location offered similar products and services as would generally be offered by a typical Units franchise offered under the disclosure document.

• Of the 41 Traditional Franchised Locations, 28 were open and in operation for the entire 2021 calendar year.

• Part 1 sets forth the Number of Units Franchises within certain annual sales thresholds of the Traditional Franchises who provided the necessary information for the fiscal years of 2021 (28 Traditional Franchises), 2020 (22 Traditional Franchises), and 2019 (18 Traditional Franchises).

• Part 2 sets forth the Average Annual Revenues for the 3 Affiliate Locations during the 2021 calendar year.

• Twenty-five of the Traditional Franchises provided the expense information the franchisor requested for the 2021 calendar year. Part 3 sets forth certain Revenue and Expense information for these 25 Traditional Franchises for the 2021 calendar year, and Part 4 sets forth certain Revenue and Expense information for the 3 Affiliate Locations for the 2021 calendar year.

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

Part 1 – Number of Units Franchises Within Certain Annual Sales Thresholds for Years Ending December 31, 2019, December 31, 2020, and December 31, 2021

2021

• Over $2,000,000:  2
• $1,000,000 to $1,999,999:  5
• $750,000 to $999,999:  8
• $500,000 to $749,999:  7
• $250,000 to $499,999:  6

2020

• Over $2,000,000:  0
• $1,000,000 to $1,999,999:  3
• $750,000 to $999,999:  3
• $500,000 to $749,999:  7
• $250,000 to $499,999:  9

2019

• Over $2,000,000:  0
• $1,000,000 to $1,999,999:  3
• $750,000 to $999,999:  1
• $500,000 to $749,999:  8
• $250,000 to $499,999:  6

Part 2 – Average Annual Revenue Information for the Affiliate Locations for the 2021 Calendar Year

• Average Annual Revenue:  $742,998
• Number Above/Below Average:  2 / 1
• Median Annual Revenue:  $876,932
• Over $1,000,000:  1
• $725,000 to $999,999:  1
• $500,000 to $724,999:  0
• $0 to $499,999:  1

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

• The “Average Annual Revenues” for the Traditional Franchise Locations is determined by taking the sum of included franchisees’ Annual Revenues divided by the number of Traditional Franchises for the applicable fiscal year (in 2021, 28 Traditional Franchises; in 2020, 22 Traditional Franchises; and in 2019, 18 Traditional Franchises).

• The “Average Annual Revenues” for the 3 Affiliate Locations is determined by taking the sum of the affiliate Annual Revenues divided by the number 3.

• “Median” means relating to a value or quantity lying at the midpoint of a frequency distribution of observed values or quantities, such that there is an equal probability of falling above or below it.

• The Highest Annual Revenue over the 2021 calendar year for the 3 Affiliate Locations disclosed in Part 2 was $1,045,298, and the Lowest Annual Revenue for these units was $306,763.

Part 3 – Franchisee Revenue/Gross Profit Information

Open 12-24 Months (Average)

Annual Revenues:  $472,269

Annual Direct Operating Expense

• Real Estate Expenses:  $181,840
• Labor Costs:  $115,999
• Marketing/Advertising:  $68,160
• Royalty:  $37,781
• Other Expenses:  $123,170
• Total:  $526,950

Annual Gross Profit:  -$54,682

Annual Gross Profit Margin:  -11.6%

Gross Profit Margin Over/Under:  3 / 2

Open 24-48 Months (Average)

Annual Revenues:  $833,958

Annual Direct Operating Expense

• Real Estate Expenses:  $212,214
• Labor Costs:  $131,418
• Marketing/Advertising:  $53,418
• Royalty:  $66,717
• Other Expenses:  $145,109
• Total:  $608,876

Annual Gross Profit:  $225,082

Annual Gross Profit Margin:  27.0%

Gross Profit Margin Over/Under:  3 / 4

Open 48 Months or Longer (Average)

Annual Revenues:  $1,112,256

Annual Direct Operating Expense

• Real Estate Expenses:  $191,623
• Labor Costs:  $196,640
• Marketing/Advertising:  $52,750
• Royalty:  $88,980
• Other Expenses:  $162,978
• Total:  $692,971

Annual Gross Profit:  $419,286

Annual Gross Profit Margin:  37.7%

Gross Profit Margin Over/Under:  5 / 8

All Locations (Average)

Annual Revenues:  $906,335 (100.0%)

Annual Direct Operating Expense

• Real Estate Expenses:  $195,432 (21.6%)
• Labor Costs:  $162,249 (17.9%)
• Marketing/Advertising:  $56,019 (6.2%)
• Royalty:  $72,507 (8.0%)
• Other Expenses:  $150,013 (16.6%)
• Total:  $636,220 (70.2%)

Annual Gross Profit:  $270,115 (29.8%)

Annual Gross Profit Margin:  29.8%

Gross Profit Margin Over/Under:  11 / 14

Part 4 – Affiliate Revenue/Gross Profit Information

Charleston

Annual Revenues:  $1,045,298

Annual Direct Operating Expense

• Real Estate Expenses:  $116,261
• Labor Costs:  $246,526
• Marketing/Advertising:  $75,197
• Other Expenses:  $246,582
• Total:  $688,565

Annual Gross Profit:  $359,733

Annual Gross Profit Margin:  34.4%

Charlotte

Annual Revenues:  $876,932

Annual Direct Operating Expense

• Real Estate Expenses:  $203,754
• Labor Costs:  $100,251
• Marketing/Advertising:  $70,720
• Other Expenses:  $180,687
• Total:  $555,411

Annual Gross Profit:  $321,521

Annual Gross Profit Margin:  36.7%

Greenville

Annual Revenues:  $306,763

Annual Direct Operating Expense

• Real Estate Expenses:  $80,261
• Labor Costs:  $50,039
• Marketing/Advertising:  $36,154
• Other Expenses:  $62,059
• Total:  $228,512

Annual Gross Profit:  $78,251

Annual Gross Profit Margin:  25.5%

All Locations (Average)

Annual Revenues:  $742,998 (100.0%)

Annual Direct Operating Expense

• Real Estate Expenses:  $133,425 (18.0%)
• Labor Costs:  $132,272 (17.8%)
• Marketing/Advertising:  $60,690 (8.2%)
• Imputed Royalty:  $59,440 (8.0%)
• Other Expenses:  $163,109 (22.0%)
• Total:  $548,936 (73.9%)

Annual Gross Profit:  $194,062 (26.1%)

Annual Gross Profit Margin:  26.1%

• “Annual Revenues” is defined as the total gross revenues generated from the 25 Traditional Franchised Locations that were in operation for the entire 2021 calendar year and that submitted the financial information the franchisor requested (for purposes of Part 3), and the total gross revenues generated from the 3 Affiliate Locations with operations during the entire 2021 calendar year (for purposes of Part 4).

• 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.

• “Annual Direct Operating Expense” is defined as the total Expenses (as defined below), the 25 Franchise Locations and 3 Affiliate Locations reported they incurred through their normal business operations.

• “Expenses” for purposes of Part 3 and Part 4 are defined as including the following reported expenses: Cost of Goods Sold (locks, blankets, straps, etc.), Ad Fund Fee, Advertising, Auto Insurance, Auto Repair & Maintenance, Equipment Repair & Maintenance, Fuel, Health Insurance, Lease/Rent for Storage Center, Merchant Bank Card Fees, Payroll Processing Fees, Payroll Taxes, Repair on Containers, Royalty Fee, Uniforms, Utilities, Wages, and Workman’s Comp Insurance.

• “Annual Gross Profit” is defined by taking “Annual Revenues” and subtracting “Annual Direct Operating Expense.”

• “Annual Gross Profit Margin” is defined by taking “Annual Gross Profit” and dividing by “Annual Revenues.”

• “GP Margin Over/Under” reflects the number of locations (for both Traditional and Affiliate) that are over and under the “Average” and the “Median.”

• The financial performance representations do not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• Actual results vary from Units Business to Units Business, and the franchisor cannot estimate the result of a particular Units Business. Revenues and expenses may vary.

• In particular, the revenues and expenses of your business will be directly affected by many factors, such as:

• (a) geographic location;
• (b) competition from other similar businesses;
• (c) advertising effectiveness based on market saturation;
• (d) whether you operate the business personally or hire a general manager;
• (e) your product and service pricing;
• (f) vendor prices on materials, supplies, and inventory;
• (g) employee salaries and benefits (life and health insurance, etc.);
• (h) insurance costs;
• (i) weather conditions;
• (j) ability to generate customers;
• (k) customer loyalty; and
• (l) employment conditions in the market.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.

Section VI – Units Moving and Portable Storage Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️