UNITS Moving and Portable Storage Franchise in 2024: Costs, Fee & FDD

UNITS Moving and Portable Storage was founded by Michael McAlhany in 2004. The franchise has carved out a significant niche in the moving and storage industry by offering innovative and flexible solutions. Known for its high-quality service and customer-centric approach, UNITS has become a trusted name for individuals and businesses alike.

The core products of UNITS include portable storage containers that are delivered to the customer’s location, allowing for convenient packing and storage. These containers can be stored on-site or at a secure UNITS storage facility. The franchise also offers moving services, making it a one-stop solution for relocation needs. The primary market includes homeowners, renters, businesses, and government agencies looking for flexible storage and moving options.

UNITS has expanded to over 70 locations across the United States. The franchise continues to grow, serving thousands of customers daily with its reliable and efficient services. This widespread presence ensures that UNITS can cater to a diverse range of storage and moving needs across various regions.

UNITS provides robust support to its franchisees, including comprehensive training programs, marketing support, and ongoing operational assistance. Franchisees benefit from a proven business model, state-of-the-art technology, and a strong brand reputation. This support system is designed to help franchisees succeed and grow their businesses effectively.

UNITS Franchise Insights

1. Since its inception in 2004, UNITS has expanded to over 70 locations across the United States, demonstrating strong growth and market demand.
2. UNITS is known for its high customer satisfaction rates, with many customers praising the convenience and flexibility of their portable storage solutions.
3. UNITS utilizes state-of-the-art technology for container delivery and storage management, setting it apart from competitors in the industry.
4. The franchise serves a wide range of customers, including homeowners, renters, businesses, and government agencies, providing versatile solutions for various storage and moving needs.

UNITS Franchise Key indicators

How much does it cost to open a UNITS franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a UNITS franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a UNITS franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a UNITS below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a UNITS franchise, the required capital involves both the initial investment costs and a net worth requirement set by UNITS. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $707,640 to $1,244,400. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Requirement UNITS typically requires franchisees to have approximately $200,000 in non-borrowed personal resources. This ensures the franchisee has sufficient funds to cover unforeseen expenses and maintain financial stability during the startup phase.
• Net Worth Requirement UNITS also assesses the overall net worth of the franchisee. While the specific net worth requirement can vary, it is estimated that a franchise with that investment has a net worth of at least $1,000,000. This includes the value of assets like real estate, investments, and personal property, minus any liabilities.

How much does a UNITS franchise owner make?

Calculating the salary of a UNITS franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a UNITS franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

UNITS Revenue & Gross Sales

In recent years, the franchise’s median gross sales reached $573,975, reflecting its market presence and customer demand. This robust financial performance underscores the franchise’s appeal to potential investors and its competitive edge in the moving and storage industry.

Which key factors impact the average revenue performance of UNITS franchisees?

Several factors likely contributed to the strong performance of UNITS franchisee median gross sales this past year. Enhanced marketing and promotional efforts have increased brand visibility and customer acquisition. Additionally, the adoption of innovative technology for container delivery and storage management has improved operational efficiency and customer satisfaction. The growing demand for flexible storage solutions, driven by trends such as remote work and increased residential mobility, has also played a significant role. Lastly, the comprehensive support and training provided to franchisees have enabled them to optimize their operations and drive sales growth.

UNITS Franchise Operational Costs

Operational costs for a franchise like UNITS are the ongoing expenses required to run the day-to-day operations of the business. These costs are essential for maintaining the business’s functionality and ensuring operations. For a UNITS franchise, operational costs include:

• Utilities Costs for electricity, water, and other essential services to keep your operations running smoothly.
• Maintenance Regular upkeep of storage containers, vehicles, and facilities to ensure they remain in good condition.
• Inventory Replenishment Ongoing costs for maintaining and updating your inventory of storage containers and related supplies.
• Wages Salaries and benefits for your staff, including drivers, customer service representatives, and administrative personnel.

These costs are crucial to maintaining efficient and effective operations for your franchise.

UNITS Franchise Fees

UNITS requires their franchisees to pay the below fees:

• Royalty Fee This is a monthly fee paid to UNITS, typically calculated as a percentage of gross sales. For UNITS, this fee is usually 8% of the restaurant’s monthly gross sales.
• National Advertising Fund Franchisees are required to contribute to the national advertising fund. The contribution is around 2% of monthly gross sales.
• Additional Fees There are additional fees for training programs, equipment, and other items provided by UNITS that may be applied.

These ongoing fees are essential to consider when planning the financial aspects of owning and operating a UNITS franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by UNITS.

UNITS Franchise Earnings

Based on the most recent data, the median gross sales for a UNITS franchise are approximately $573,975. For an owner-operator, estimated earnings are around $103,000. This can vary based on numerous factors such as location, market conditions, and operational efficiency.

These estimates provide a useful benchmark for potential franchisees to gauge the financial potential of their investment. However, it’s crucial to conduct thorough research and consider all variables that might impact your specific situation.

How to Open a UNITS Franchise

Becoming a franchisee involves several key steps, starting from your initial inquiry to the launch of your business operations. Here’s a detailed overview:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Franchise Application Complete and submit a franchise application form. This typically includes providing details about your background, financial status, and business experience.
3. Due Diligence Conduct thorough due diligence by speaking with existing franchisees, visiting franchise locations, and consulting with legal and financial advisors to ensure you fully understand the commitment.
4. Franchise Agreement If you decide to proceed, sign the franchise agreement. This legally binding document outlines the terms and conditions of your franchise relationship.
5. Financing Secure the necessary financing to cover the initial investment and startup costs. This may involve personal savings, loans, or other funding sources.
6. Training Program Participate in the franchisor’s training program, which typically covers operational procedures, marketing strategies, and customer service standards.
7. Site Selection and Setup Work with the franchisor to select an appropriate location for your franchise. Oversee the setup and build-out of your business premises according to the franchisor’s specifications.
8. Pre-Opening Marketing Implement pre-opening marketing and promotional activities to generate awareness and attract initial customers.
9. Grand Opening Launch your franchise with a grand opening event to introduce your business to the community and start operations.

Pros & Cons

Pros

Strong Brand Recognition: UNITS has established a reputable brand in the moving and storage industry, which can attract a steady customer base.

Innovative Technology: The use of state-of-the-art technology for container delivery and storage management sets UNITS apart from competitors.

Flexible Business Model: The franchise offers both moving and storage solutions, catering to a diverse range of customers, including homeowners, renters, businesses, and government agencies.

Growing Market Demand: The increasing need for flexible storage solutions, driven by trends like remote work and residential mobility, supports strong market demand.

Cons

Operational Costs: Regular expenses such as utilities, maintenance, inventory replenishment, wages, and local marketing efforts need to be managed effectively.

Market Competition: The moving and storage industry is competitive, and franchisees must continuously innovate and provide excellent service to stand out.