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

• Section I – Estimated initial investment (franchise costs) for a Two Men and a Truck franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Two Men and a Truck franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Two Men and a Truck 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 Two Men and a Truck franchise opportunity, including relevant news updates

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

• average and median annual gross sales for the years 2017 through 2021 for all standard Franchise Operating Units operating for a full 12 months as of December 31st of each of those years

• average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for all 194 standard Franchise Operating Units that operated for a full 12 months as of December 31, 2021

• average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for all 154 Single Franchises operating for a full 12 months as of December 31, 2021

• average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for each of the first four years of operation for Single Franchises that completed their first, second, third, or fourth year of operation in 2021 and were still operating as of December 31, 2021

• average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for each of the first four years of operation for Mini-Market Franchises that completed their first, second, third, or fourth year of operation in 2021 and were still operating as of December 31, 2021

• Section VI – Key ratios, comparables, computations, and analyses for the Two Men and a Truck franchise opportunity (exclusive content for Platinum subscribers)

Section I – Two Men and a Truck Franchise Costs

• Two Men and a Truck (standard franchise) franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $50,000 to $85,000
• Lease Security Deposit:  $2,400 to $24,000
• Leasehold Improvements:  $3,000 to $4,000
• Miscellaneous Start-up Expense:  $8,000 to $25,000
• Insurance and Risk Management:  $25,000 to $43,000
• Licensing Requirements:  $500 to $20,000
• Legal and Accounting Fees:  $1,000 to $2,000
• Trucks:  $3,000 to $31,900
• Office/Mobile Technology Costs:  $16,000 to $24,000
• Initial Marketing Expenses:  $20,000 to $40,000
• Storage Service Expenses:  $0 to $30,000
• Pre-Opening Training Costs:  $2,500 to $6,000
• Additional Funds – 3 Months:  $32,600 to $100,700
• Total Estimated Two Men and a Truck Franchise Costs:  $164,000 to $435,600

Section II – Two Men and a Truck’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Two Men and a Truck’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee for Standard Franchise:  $50,000 to $85,000
• Royalty Fee:  6% of Gross Sales
• Contributions to Advertising Fund:  1% of Gross Sales

Section III – Number of Franchised and Company-Owned Two Men and a Truck Outlets

Franchised

2019

• Outlets at the Start of the Year:  267
• Outlets at the End of the Year:  273
• Net Change:  +6

2020

• Outlets at the Start of the Year:  273
• Outlets at the End of the Year:  276
• Net Change:  +3

2021

• Outlets at the Start of the Year:  276
• Outlets at the End of the Year:  284
• Net Change:  +8

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 Two Men and a Truck Franchise

17 Things You Need to Know About the Two Men and a Truck Franchise

Acquired by ServiceMaster Brands

1.  In early August 2021, ServiceMaster Brands completed its acquisition of Two Men and a Truck. “Two Men and a Truck is an excellent addition to the ServiceMaster Brands portfolio,” said Elane Stock, CEO of ServiceMaster Brands. “Not only are they the leading brand in their industry, but they also have a deeply ingrained culture of customer service, focus on building the capabilities of their franchise network, and respect for frontline team members – values we share.”

2.  Throughout the Two Men and a Truck brand’s 35-year history, the franchise system has consistently delivered on their mission of exceeding customers’ expectations while living their core values including giving back to the community and The Grandma Rule: To treat everyone the way you would want your Grandma to be treated. The brand has seen consistent growth dating back to 2009 and most recently reported a 41.32% spike in revenue in Q2 of 2021.

3.  Jon Nobis, CEO of Two Men and a Truck, said, “We have much to be proud of. What started as a small, local moving company with simply two men and a truck, has grown to an extensive franchise network with locations in the U.S., Canada, the UK and Ireland. Now we are eager to take our brand to the next level. We are confident the combination of our mission of exceeding customers’ expectations with our shared commitment to innovation will drive further growth for both Two Men and a Truck and ServiceMaster Brands.”

4.  At ServiceMaster Brands and Two Men and a Truck, teams and franchisees alike share a commitment to caring for the communities in which they live and work. That’s why ServiceMaster Brands is making a charitable contribution to two non-profit organizations, continuing the founding Two Men and a Truck family’s commitment to moving people forward. The first is a $160,000 donation to Convoy of Hope, a humanitarian organization that’s often an early responder in times of natural disasters. ServiceMaster Brands is also donating $40,000 to Ele’s Place, a Lansing-area healing center for grieving children, teens, young adults and their families. Both Convoy of Hope and Ele’s Place are organizations Two Men and a Truck has built long-lasting relationships with and will continue to support.

5.  Nobis will join ServiceMaster Brands’ executive leadership team, reporting to CEO Elane Stock. The Two Men and a Truck team will continue to report to Nobis and will operate from their home office out of Lansing, Michigan as they do today.

On Pace to Open 400th Location and Hit 9 Millionth Move in 2022

6.  In mid-April 2022, Two Men and a Truck celebrated its continued momentum as it looks to accomplish another banner year of franchise development across its brand. In 2021, the brand completed 12 new franchise agreements and 19 transfers, expansion into two new states (Vermont and Rhode Island), and continued revenue increases through a mix of diversified services and long-distance moves as Americans continued to relocate amid the pandemic.

7.  Additionally, the company’s junk removal service saw a record-breaking year as new franchisees signed on to offer the service in their local markets. The company said that it is on pace to cross the 400-unit mark and record its 9 millionth move this year.

8.  CEO Jon Nobis said, “Each year, we break new records and hit new milestones. 2022 is already off to a strong start, as we’re preparing to move into new markets, expand our existing territories and grow our mini-market opportunity for franchisees who are looking for more flexibility to work with less staff and trucks while in an area where there’s still demand for high-quality moving services.”

9.  The mini-market option was a huge hit for the brand in 2021, with more franchisees than ever investing in the lower-cost-of-entry but same-level-of-support-and-training model to bring the franchise to new markets. Two Men and a Truck’s Compliance Director Pam Batten said that aside from the added benefit of the mini-market opening up lower-cost ownership opportunities for new franchisees, existing team members are embracing the mini-market model as well.

10.  For example, Tim Kiran, Jeremy McDuffie, and Brian Churney started out as employees at the Durham, North Carolina, location of Two Men and a Truck, and the trio now has a new mini-market location in the Outer Banks. McDuffie said, “Two Men and a Truck is always trying to move people forward, so it’s easy to jump on that opportunity and make moves. If you put in the hard work, you can get the opportunity. As employees, we could easily see the opportunity that franchising with Two Men and a Truck provided.”

11.  This year, Two Men and a Truck is planning on signing eight internal franchisee expansions, seven new franchisees to open traditional markets, awarding 10 mini-markets to new franchisees, and finalizing 10 ownership transfers. Additionally, the company is planning for more of its locations to begin offering its junk removal services.

12.  “We have seen a major demand for our junk services during the pandemic,” said Two Men and a Truck President Randy Shacka. “What’s unique about our junk removal option is that it keeps franchise revenue strong during the colder, off-season months, offsetting the times when Two Men and a Truck crews aren’t as busy with regular moves.”

13.  Even when moves slow down during the winter months, Americans are on the move considerably since the onset of the pandemic. With the amount of people moving in 2021 up nearly 20% nationwide compared to 2020, Two Men and a Truck’s services are needed now more than ever as people seek new homes, storage, and junk removal in 2022. Thanks largely to that increase in demand, Two Men and a Truck saw double-digit growth across all revenue streams last year.

Company History

14.  Two Men and a Truck was founded in 1985 by Mary Ellen Sheets in Lansing, Michigan. The company traces its roots to the small moving business Sheets’ sons, Jon and Brig Sorber, started in order to earn extra money during high school. When her sons left for college, Sheets took over the business and decided to run it full time. She came up with the company name and drew the company’s stick figure logo of two men in a truck.

15.  Sheets continued to successfully run the business over the next few years and in 1989, she decided to start franchising Two Men and a Truck. The first franchise was sold to Sheets’ daughter, Melanie Bergeron. After graduating from college, Brig and Jon returned to the company. Over the next decade, Two Men and a Truck continued to expand across the United States.

16.  The Sorbers and Bergeron have held various positions with the company over the years, until the company was sold to ServiceMaster Brands in 2021. Today, Two Men and a Truck is one of the largest moving franchises with locations around the world.

Entrepreneur’s Franchise 500

17.  Two Men and a Truck ranked No. 111 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Two Men and a Truck Franchise (Item 19, 2022 FDD)

• The financial performance information provided in this Item 19 is a historical financial performance representation about all of the franchisees existing in the franchise system for the relevant period based upon financial information those franchisees reported to Two Men and a Truck.

• In this Item 19, Two Men and a Truck has presented financial performance information for (a) single standard franchises operating in a single Marketing Area under a single franchise agreement (“Single Franchises”), (b) one or more standard franchises under common ownership that are licensed under one or more franchise agreements to operate in one or more Marketing Areas but work as a single business unit in the same general geographic region and share personnel and trucks (“Franchise Operating Units”), and (c) Mini-Market Franchises.

• Two Men and a Truck believes Franchise Operating Units are the best measurement of the total business and represent how franchises actually operate. Franchise Operating Units include Single Franchises. Franchise Operating Units and Single Franchises do not include Mini-Market Franchises or affiliate-owned businesses.

Part 1 – Gross Sales for Franchise Operating Units in Calendar Years 2017 Through 2021

• The table below reflects the average and median annual Gross Sales for the years 2017 through 2021 for all standard Franchise Operating Units operating for a full 12 months as of December 31st of each of those years.

2017

• Number of Franchise Operating Units in the Group:  226
• Average Annual Gross Sales:  $2,155,910
• Median Annual Gross Sales:  $1,908,778
• Highest Annual Gross Sales of Group:  $9,735,261
• Lowest Annual Gross Sales of Group:  $311,132
• Percentage of Franchise Operating Units That Met or Exceeded the Average:  36%

2018

• Number of Franchise Operating Units in the Group:  217
• Average Annual Gross Sales:  $2,339,435
• Median Annual Gross Sales:  $2,045,348
• Highest Annual Gross Sales of Group:  $10,009,908
• Lowest Annual Gross Sales of Group:  $207,251
• Percentage of Franchise Operating Units That Met or Exceeded the Average:  37%

2019

• Number of Franchise Operating Units in the Group:  211
• Average Annual Gross Sales:  $2,484,500
• Median Annual Gross Sales:  $2,135,571
• Highest Annual Gross Sales of Group:  $9,660,556
• Lowest Annual Gross Sales of Group:  $142,184
• Percentage of Franchise Operating Units That Met or Exceeded the Average:  35%

2020

• Number of Franchise Operating Units in the Group:  203
• Average Annual Gross Sales:  $2,525,237
• Median Annual Gross Sales:  $2,033,804
• Highest Annual Gross Sales of Group:  $10,858,645
• Lowest Annual Gross Sales of Group:  $108,858
• Percentage of Franchise Operating Units That Met or Exceeded the Average:  34%

2021

• Number of Franchise Operating Units in the Group:  194
• Average Annual Gross Sales:  $3,088,152
• Median Annual Gross Sales:  $2,488,277
• Highest Annual Gross Sales of Group:  $14,309,123
• Lowest Annual Gross Sales of Group:  $545,743
• Percentage of Franchise Operating Units That Met or Exceeded the Average:  35%

• “Gross Sales” includes revenue earned from both required and optional services (such as junk removal or storage services).

• The number of Franchise Operating Units decreased in 2018, 2019, 2020, and 2021 because more franchisees consolidated their franchises into a single Franchise Operating Unit.

Part 2 – Gross Sales and Expenses in 2021 for Franchise Operating Units

• The table below reflects average and median annual Gross Sales and expenses for the 2021 calendar year for all 194 standard Franchise Operating Units that operated for a full 12 months as of December 31, 2021.

• Average Annual Gross Sales:  $3,088,152
• Median Annual Gross Sales:  $2,488,277
• Highest Annual Gross Sales:  $14,309,123
• Lowest Annual Gross Sales:  $545,743

• Average Direct Labor – Mover Wage Expenses:  $892,760 (29%)
• Median Direct Labor – Mover Wage Expenses:  $691,299 (28%)
• Average Moving Truck Expenses:  $424,433 (14%)
• Median Moving Truck Expenses:  $358,779 (14%)
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $171,268 (6%)
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $130,683 (5%)
• Average Advertising Expenses:  $79,169 (3%)
• Median Advertising Expenses:  $61,253 (2%)
• Average Facility Expenses:  $138,783 (4%)
• Median Facility Expenses:  $101,966 (4%)
• Average Franchise Fees:  $244,465 (8%)
• Median Franchise Fees:  $189,795 (8%)
• Average Support Staff Expenses:  $414,332 (13%)
• Median Support Staff Expenses:  $349,810 (14%)
• Average Other Administrative Expenses:  $272,948 (9%)
• Median Other Administrative Expenses:  $215,149 (9%)
• Total Average Annual Expenses:  $2,638,157 (85%)
• Median Average Annual Expenses:  $2,098,735 (84%)

• As of December 31, 2021, there were 196 standard Franchise Operating Units. Of those 196 Franchise Operating Units, 194 were operated throughout 2021 and are represented in this table. This table excludes two Franchise Operating Units that began operating in 2021. No Franchise Operating Units ceased operating in 2021, but four Franchise Operating Units were consolidated into other Franchise Operating Units in 2021 (and are represented in this table). This table does not include 12 Mini-Market Franchises. This table also does not include affiliate-owned units.

• The number of Franchise Operating Units decreased in 2018, 2019, 2020, and 2021 because more franchisees consolidated their franchises into a single Franchise Operating Unit.

• 82 Franchise Operating Units included in this chart reported revenue from providing storage services in 2021, which accounted for 2.0% of the average annual Gross Sales for such units providing such services. 48 Franchise Operating Units included in this chart reported revenue from providing junk removal services in 2021, which accounted for 1.6% of the average annual Gross Sales for such units providing such services.

Part 3 – Gross Sales and Expenses in 2021 for Single Franchises

• The table below reflects average and median annual Gross Sales and expenses for the 2021 calendar year for all 154 Single Franchises operating for a full 12 months as of December 31, 2021.

• Average Annual Gross Sales:  $2,646,119
• Median Annual Gross Sales:  $2,228,827
• Highest Annual Gross Sales:  $11,728,292
• Lowest Annual Gross Sales:  $545,743

• Average Direct Labor – Mover Wage Expenses:  $775,455 (29%)
• Median Direct Labor – Mover Wage Expenses:  $654,449 (29%)
• Average Moving Truck Expenses:  $365,333 (14%)
• Median Moving Truck Expenses:  $304,815 (14%)
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $143,539 (5%)
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $112,529 (5%)
• Average Advertising Expenses:  $66,149 (2%)
• Median Advertising Expenses:  $54,607 (2%)
• Average Facility Expenses:  $114,701 (4%)
• Median Facility Expenses:  $94,830 (4%)
• Average Franchise Fees:  $209,802 (8%)
• Median Franchise Fees:  $171,405 (8%)
• Average Support Staff Expenses:  $357,896 (14%)
• Median Support Staff Expenses:  $317,145 (14%)
• Average Other Administrative Expenses:  $234,276 (9%)
• Median Other Administrative Expenses:  $191,286 (9%)
• Total Average Annual Expenses:  $2,267,151 (86%)
• Median Average Annual Expenses:  $1,901,067 (85%)

• As of December 31, 2021, there were 156 Single Franchises. Of those 156 Single Franchises, 154 were operated throughout 2021 and are represented in this table. This table excludes two Single Franchises that began operating in 2021. No Single Franchises ceased operating in 2021, though one was consolidated into a Franchise Operating Unit that operated in multiple Marketing Areas under multiple Franchise Agreements (and is, therefore, not represented in this table). This table also excludes (i) 116 franchises that are operated by the 40 Franchise Operating Units that operate in multiple Marketing Areas under two or more Franchise Agreements and (ii) 12 Mini-Market Franchises. This table also does not include affiliate-owned units.

• 70 Single Franchises included in this chart reported revenue from providing storage services in 2021, which accounted for 2.13% of the average annual Gross Sales for such units providing such services. 32 Single Franchises included in this chart reported revenue from providing junk removal services in 2021, which accounted for 1.97% of the average annual Gross Sales for such units providing such services.

Part 4 – Gross Sales and Expenses in 2021 for Single Franchises by Years of Operation

• The table below reflects average and median annual Gross Sales and expenses for Single Franchises that completed their first, second, third, or fourth year of operation in 2021 and were still operating as of December 31, 2021.

Year 1 of Operation

• Number of Single Franchises:  2

• Average Annual Gross Sales:  $840,569
• Median Annual Gross Sales:  $840,569
• Highest Annual Gross Sales:  $1,070,059
• Lowest Annual Gross Sales:  $611,078

• Average Direct Labor – Mover Wage Expenses:  $245,813
• Median Direct Labor – Mover Wage Expenses:  $245,813
• Average Moving Truck Expenses:  $142,634
• Median Moving Truck Expenses:  $142,634
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $52,088
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $52,088
• Average Advertising Expenses:  $43,762
• Median Advertising Expenses:  $43,762
• Average Facility Expenses:  $35,726
• Median Facility Expenses:  $35,726
• Average Franchise Fees:  $73,086
• Median Franchise Fees:  $73,086
• Average Support Staff Expenses:  $101,037
• Median Support Staff Expenses:  $101,037
• Average Other Administrative Expenses:  $82,984
• Median Other Administrative Expenses:  $82,984
• Total Average Annual Expenses:  $777,129
• Median Average Annual Expenses:  $777,129

Year 2 of Operation

• Number of Single Franchises:  5

• Average Annual Gross Sales:  $1,508,942
• Median Annual Gross Sales:  $1,415,759
• Highest Annual Gross Sales:  $2,548,524
• Lowest Annual Gross Sales:  $505,780

• Average Direct Labor – Mover Wage Expenses:  $496,755
• Median Direct Labor – Mover Wage Expenses:  $373,757
• Average Moving Truck Expenses:  $218,056
• Median Moving Truck Expenses:  $247,160
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $91,218
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $77,466
• Average Advertising Expenses:  $36,799
• Median Advertising Expenses:  $38,500
• Average Facility Expenses:  $42,781
• Median Facility Expenses:  $35,553
• Average Franchise Fees:  $124,487
• Median Franchise Fees:  $117,600
• Average Support Staff Expenses:  $202,139
• Median Support Staff Expenses:  $252,931
• Average Other Administrative Expenses:  $127,971
• Median Other Administrative Expenses:  $106,267
• Total Average Annual Expenses:  $1,340,206
• Median Average Annual Expenses:  $1,379,107

Year 3 of Operation

• Number of Single Franchises:  2

• Average Annual Gross Sales:  $831,127
• Median Annual Gross Sales:  $831,127
• Highest Annual Gross Sales:  $961,087
• Lowest Annual Gross Sales:  $701,168

• Average Direct Labor – Mover Wage Expenses:  $266,426
• Median Direct Labor – Mover Wage Expenses:  $266,426
• Average Moving Truck Expenses:  $147,827
• Median Moving Truck Expenses:  $147,827
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $53,243
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $53,243
• Average Advertising Expenses:  $29,696
• Median Advertising Expenses:  $29,696
• Average Facility Expenses:  $55,770
• Median Facility Expenses:  $55,770
• Average Franchise Fees:  $70,319
• Median Franchise Fees:  $70,319
• Average Support Staff Expenses:  $152,969
• Median Support Staff Expenses:  $152,969
• Average Other Administrative Expenses:  $65,670
• Median Other Administrative Expenses:  $65,670
• Total Average Annual Expenses:  $841,920
• Median Average Annual Expenses:  $841,920

Year 4 of Operation

• Number of Single Franchises:  5

• Average Annual Gross Sales:  $1,563,905
• Median Annual Gross Sales:  $1,340,400
• Highest Annual Gross Sales:  $2,034,263
• Lowest Annual Gross Sales:  $1,076,219

• Average Direct Labor – Mover Wage Expenses:  $472,711
• Median Direct Labor – Mover Wage Expenses:  $442,450
• Average Moving Truck Expenses:  $235,898
• Median Moving Truck Expenses:  $205,285
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $83,264
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $56,179
• Average Advertising Expenses:  $41,110
• Median Advertising Expenses:  $30,200
• Average Facility Expenses:  $70,652
• Median Facility Expenses:  $62,126
• Average Franchise Fees:  $125,791
• Median Franchise Fees:  $108,987
• Average Support Staff Expenses:  $175,062
• Median Support Staff Expenses:  $198,270
• Average Other Administrative Expenses:  $160,323
• Median Other Administrative Expenses:  $163,038
• Total Average Annual Expenses:  $1,364,812
• Median Average Annual Expenses:  $1,173,757

Average Expense as a Percentage of Sales During First Four Years

• Average Direct Labor – Mover Wage Expenses:  30%
• Average Moving Truck Expenses:  16%
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  5%
• Average Advertising Expenses:  3%
• Average Facility Expenses:  5%
• Average Franchise Fees:  8%
• Average Support Staff Expenses:  13%
• Average Other Administrative Expenses:  10%
• Total Average Annual Expenses:  91%

• “Direct Labor – Mover Wage Expenses” includes the wages and benefits paid to movers.

• “Moving Truck Expenses” includes lease or loan payments, maintenance costs, and fuel costs related to moving trucks.

• “Other Moving Expenses” includes the cost of supplies, damages and warranty expenses, and other miscellaneous moving and storage-related expenses.

• “Advertising Expenses” includes all expenses related to conducting advertising, except for the national advertising fees paid to Two Men and a Truck.

• “Facility Expenses” includes rent for the office and any storage facilities, utilities, and furniture, fixtures, and equipment used in the facilities.

• “Franchise Fees” includes royalties, national advertising fees, and technology fees.

• “Support Staff Expenses” includes the wages and benefits paid to support staff, including salespeople and other non-moving personnel.

• “Other Administrative Expenses” includes recruiting, retention, and training costs, professional fees, non-moving vehicle costs, office expenses, and finance costs.

Part 5 – Gross Sales and Expenses for New Mini-Market Franchises by Years of Operation

• The table below reflects average and median annual Gross Sales and expenses for Mini-Market Franchises that completed their first, second, third, or fourth year of operation in 2021 and were still operating as of December 31, 2021.

Year 1 of Operation

• Number of Mini-Market Franchises:  2

• Average Annual Gross Sales:  $357,076
• Median Annual Gross Sales:  $357,076
• Highest Annual Gross Sales:  $371,686
• Lowest Annual Gross Sales:  $342,467

• Average Direct Labor – Mover Wage Expenses:  $124,503
• Median Direct Labor – Mover Wage Expenses:  $124,503
• Average Moving Truck Expenses:  $61,989
• Median Moving Truck Expenses:  $61,989
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $19,515
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $19,515
• Average Advertising Expenses:  $23,201
• Median Advertising Expenses:  $23,201
• Average Facility Expenses:  $39,219
• Median Facility Expenses:  $39,219
• Average Franchise Fees:  $31,665
• Median Franchise Fees:  $31,665
• Average Support Staff Expenses:  $22,451
• Median Support Staff Expenses:  $22,451
• Average Other Administrative Expenses:  $40,580
• Median Other Administrative Expenses:  $40,580
• Total Average Annual Expenses:  $363,123
• Median Average Annual Expenses:  $363,123

Year 2 of Operation

• Number of Mini-Market Franchises:  2

• Average Annual Gross Sales:  $488,958
• Median Annual Gross Sales:  $488,958
• Highest Annual Gross Sales:  $602,221
• Lowest Annual Gross Sales:  $375,694

• Average Direct Labor – Mover Wage Expenses:  $154,208
• Median Direct Labor – Mover Wage Expenses:  $154,208
• Average Moving Truck Expenses:  $93,225
• Median Moving Truck Expenses:  $93,225
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $30,291
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $30,291
• Average Advertising Expenses:  $16,202
• Median Advertising Expenses:  $16,202
• Average Facility Expenses:  $39,875
• Median Facility Expenses:  $39,875
• Average Franchise Fees:  $43,711
• Median Franchise Fees:  $43,711
• Average Support Staff Expenses:  $68,184
• Median Support Staff Expenses:  $68,184
• Average Other Administrative Expenses:  $54,265
• Median Other Administrative Expenses:  $54,265
• Total Average Annual Expenses:  $499,961
• Median Average Annual Expenses:  $499,961

Year 3 of Operation

• Number of Mini-Market Franchises:  1

• Average Annual Gross Sales:  $500,441
• Median Annual Gross Sales:  $500,441
• Highest Annual Gross Sales:  $500,441
• Lowest Annual Gross Sales:  $500,441

• Average Direct Labor – Mover Wage Expenses:  $155,182
• Median Direct Labor – Mover Wage Expenses:  $155,182
• Average Moving Truck Expenses:  $56,927
• Median Moving Truck Expenses:  $56,927
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $18,640
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $18,640
• Average Advertising Expenses:  $7,980
• Median Advertising Expenses:  $7,980
• Average Facility Expenses:  $45,292
• Median Facility Expenses:  $45,292
• Average Franchise Fees:  $44,377
• Median Franchise Fees:  $44,377
• Average Support Staff Expenses:  $65,656
• Median Support Staff Expenses:  $65,656
• Average Other Administrative Expenses:  $62,873
• Median Other Administrative Expenses:  $62,873
• Total Average Annual Expenses:  $456,927
• Median Average Annual Expenses:  $456,927

Year 4 of Operation

• Number of Mini-Market Franchises:  2

• Average Annual Gross Sales:  $788,790
• Median Annual Gross Sales:  $788,790
• Highest Annual Gross Sales:  $838,888
• Lowest Annual Gross Sales:  $738,693

• Average Direct Labor – Mover Wage Expenses:  $246,388
• Median Direct Labor – Mover Wage Expenses:  $246,388
• Average Moving Truck Expenses:  $123,029
• Median Moving Truck Expenses:  $123,029
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $38,536
• Median Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $38,536
• Average Advertising Expenses:  $11,443
• Median Advertising Expenses:  $11,443
• Average Facility Expenses:  $63,615
• Median Facility Expenses:  $63,615
• Average Franchise Fees:  $70,804
• Median Franchise Fees:  $70,804
• Average Support Staff Expenses:  $75,881
• Median Support Staff Expenses:  $75,881
• Average Other Administrative Expenses:  $69,513
• Median Other Administrative Expenses:  $69,513
• Total Average Annual Expenses:  $699,209
• Median Average Annual Expenses:  $699,209

Average Expense as a Percentage of Sales During First Four Years

• Average Direct Labor – Mover Wage Expenses:  34%
• Average Moving Truck Expenses:  15%
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  4%
• Average Advertising Expenses:  2%
• Average Facility Expenses:  6%
• Average Franchise Fees:  9%
• Average Support Staff Expenses:  9%
• Average Other Administrative Expenses:  11%
• Total Average Annual Expenses:  91%

Section VI – Two Men and a Truck Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️