In this exclusive Franchise Chatter 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 2024 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 2024 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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Two Men and a Truck franchise opportunity

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 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest annual gross sales for all Metro Market Franchise Operating Units operating for all 12 months of the 2023 calendar year

• 2023 average, median, highest, and lowest annual gross sales; average direct labor – mover wage expenses; average moving truck expenses; average other moving expenses – damages, supplies, other direct costs; average advertising expenses; average facility expenses; average franchise fees; average support staff expenses; average other administrative expenses; average total annual expenses; and average, median, highest, and lowest EBITDA for:

• (i) the 44 Multi-Unit Franchises that operated for a full 12 months as of December 31, 2023;
• (ii) the 166 Single Franchises operating for a full 12 months as of December 31, 2023;
• (iii) each of the first four years of operation for Single Franchises that completed their first, second, third, or fourth year of operation in 2023 and were still operating as of December 31, 2023; and
• (iv) each of the first four years of operation for Mod Market Franchises that completed their first, second, third, or fourth year of operation in 2023 and were still operating as of December 31, 2023

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

• Initial Franchise Fee:  $50,000 to $165,000
• 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:  $2,500 to $7,500
• Trucks:  $3,200 to $49,500
• 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:  $165,700 to $538,700

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

• Initial Franchise Fee:  $50,000 to $85,000 for Metro Market Franchises; $30,000 for Mod Market Franchises
• 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

2021

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

2022

• Outlets at the Start of the Year:  284
• Outlets at the End of the Year:  293
• Net Change:  +9

2023

• Outlets at the Start of the Year:  293
• Outlets at the End of the Year:  313
• Net Change:  +20

Company-Owned

2021

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

2022

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

2023

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

Section IV – News Updates on the Two Men and a Truck Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Two Men and a Truck Franchise (Item 19, 2024 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 Metro Market Franchises operating in a single Marketing Area under a single franchise agreement (“Single Franchises”), (b) multiple Metro Market Franchises under common ownership that are licensed under multiple franchise agreements to operate in multiple Marketing Areas but work as a single business unit in the same general geographic region and share personnel and trucks (“Multi-Unit Franchises”), and (c) Mod Market Franchises.

• Two Men and a Truck refers to Single Franchises and Multi-Unit Franchises collectively as “Franchise Operating Units.” Franchise Operating Units do not include Mod Market Franchises. Two Men and a Truck has not included affiliate-owned businesses in any category.

Part 1 – Gross Sales for Franchise Operating Units in 2023

• The table below reflects the average and median annual Gross Sales for 2023 for all Metro Market Franchise Operating Units operating for all 12 months of the 2023 calendar year.

2023

• Number of Franchise Operating Units:  195
• Average Annual Gross Sales:  $2,864,079
• Number and Percentage of Franchise Operating Units That Met or Exceeded the Average:  66 / 34%
• Median Annual Gross Sales:  $2,314,231
• Highest Annual Gross Sales:  $15,687,136
• Lowest Annual Gross Sales:  $631,085

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

• As of December 31, 2023, there were 204 Franchise Operating Units. Of those 204, 195 Franchise Operating Units operated throughout 2023 and are represented in this table.

• This table excludes nine Franchise Operating Units that began operating in 2023. No Multi-Unit Franchises ceased operating in 2023.

Part 2 – Gross Sales and Expenses in 2023 for Multi-Unit Franchises

• The table below reflects average and median annual Gross Sales and expenses for the 2023 calendar year for 44 Multi-Unit Franchises that operated for a full 12 months as of December 31, 2023.

• Average Annual Gross Sales:  $4,532,377 (100.0%)
• Median Annual Gross Sales:  $4,039,165
• Highest Annual Gross Sales:  $15,687,136
• Lowest Annual Gross Sales:  $759,995

• Average Direct Labor – Mover Wage Expenses:  $1,312,654 (29.0%)
• Average Moving Truck Expenses:  $496,624 (11.0%)
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $279,876 (6.2%)
• Average Advertising Expenses:  $194,037 (4.3%)
• Average Facility Expenses:  $247,245 (5.5%)
• Average Franchise Fees:  $365,930 (8.1%)
• Average Support Staff Expenses:  $676,473 (14.9%)
• Average Other Administrative Expenses:  $377,705 (8.3%)
• Average Total Annual Expenses:  $3,950,544 (87.2%)

• Average Total EBITDA:  $581,833 (12.8%)
• Median EBITDA:  $481,051
• Highest EBITDA:  $1,859,903
• Lowest EBITDA:  ($150,524)

• As of December 31, 2023, there were 47 Multi-Unit Franchises. Of those 47 Multi-Unit Franchisees, 44 were operated throughout 2023 and are represented in this table.

• This table excludes three Multi-Unit Franchises that began operating in 2023. No Multi-Unit Franchises ceased operating in 2023. This table does not include 151 Single Franchises operated by single-unit franchisees and 24 Mod Market Franchises. This table also does not include affiliate-owned units.

• The 44 Multi-Unit Franchises include a total of 125 Single Franchises, which are included in this table. The following chart provides additional details regarding the number of Single Franchises operated by each Multi-Unit Franchise included in this table:

Number of Single Franchises Operated by Multi-Unit Franchises

• Average:  2.8
• Number and Percentage That Met or Exceeded Average:  21 / 48%
• Median:  2
• Low:  2
• High:  7

Part 3 – Gross Sales and Expenses in 2023 for Single Franchises

• The table below reflects average, median, highest, and lowest annual Gross Sales and average expenses for the 2023 calendar year for all 166 Single Franchises operating for a full 12 months as of December 31, 2023.

• Average Annual Gross Sales:  $2,377,952 (100.0%)
• Median Annual Gross Sales:  $2,103,949
• Highest Annual Gross Sales:  $10,969,997
• Lowest Annual Gross Sales:  $631,085

• Average Direct Labor – Mover Wage Expenses:  $687,411 (28.9%)
• Average Moving Truck Expenses:  $290,536 (12.2%)
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $126,996 (5.3%)
• Average Advertising Expenses:  $78,705 (3.3%)
• Average Facility Expenses:  $123,700 (5.2%)
• Average Franchise Fees:  $191,572 (8.1%)
• Average Support Staff Expenses:  $359,575 (15.1%)
• Average Other Administrative Expenses:  $197,958 (8.3%)
• Average Total Annual Expenses:  $2,053,685 (86.4%)

• Average Total EBITDA:  $324,267 (13.6%)
• Median EBITDA:  $240,312
• Highest EBITDA:  $1,993,642
• Lowest EBITDA:  ($138,287)

• As of December 31, 2023, there were 153 Single Franchises. Of those 153 Single Franchises, 151 were operated throughout 2023 and are represented in this table.

• This table excludes two Single Franchises that began operating in 2023. No Single Franchise ceased operating in 2023.This table also excludes (i) 47 Multi-Unit Metro Market franchises that operate in multiple Marketing Areas under two or more Agreements and (ii) 24 Mod Market Franchises. This table also does not include affiliate-owned units.

• 112 Single Franchises included in this chart reported revenue from providing storage services in 2023, which accounted for 1.97% of the average annual Gross Sales for such units providing such services.

Part 4 – Gross Sales and Expenses in 2023 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 2023 and were still operating as of December 31, 2023. Single Franchises that completed their fifth or subsequent years of operation in 2023 are not included in this table.

Year 1 of Operation

• Number of Single Franchises:  4

• Average Annual Gross Sales:  $786,174
• Median Annual Gross Sales:  $750,256
• Highest Annual Gross Sales:  $1,011,573
• Lowest Annual Gross Sales:  $632,611

• Average Direct Labor – Mover Wage Expenses:  $227,525
• Average Moving Truck Expenses:  $91,306
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $47,591
• Average Advertising Expenses:  $54,110
• Average Facility Expenses:  $73,895
• Average Franchise Fees:  $58,372
• Average Support Staff Expenses:  $121,504
• Average Other Administrative Expenses:  $80,138
• Average Total Annual Expenses:  $754,442

• Average Total EBITDA:  $31,732
• Median EBITDA:  $652
• Highest EBITDA:  $191,669
• Lowest EBITDA:  ($66,044)

Year 2 of Operation

• Number of Single Franchises:  2

• Average Annual Gross Sales:  $993,645
• Median Annual Gross Sales:  $993,645
• Highest Annual Gross Sales:  $1,124,856
• Lowest Annual Gross Sales:  $862,434

• Average Direct Labor – Mover Wage Expenses:  $279,447
• Average Moving Truck Expenses:  $136,169
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $66,669
• Average Advertising Expenses:  $47,268
• Average Facility Expenses:  $40,920
• Average Franchise Fees:  $84,168
• Average Support Staff Expenses:  $143,053
• Average Other Administrative Expenses:  $101,324
• Average Total Annual Expenses:  $899,018

• Average Total EBITDA:  $94,627
• Median EBITDA:  $94,627
• Highest EBITDA:  $223,484
• Lowest EBITDA:  ($34,230)

Year 3 of Operation

• Number of Single Franchises:  1

• Average Annual Gross Sales:  $1,516,485
• Median Annual Gross Sales:  $1,516,485
• Highest Annual Gross Sales:  $1,516,485
• Lowest Annual Gross Sales:  $1,516,485

• Average Direct Labor – Mover Wage Expenses:  $362,825
• Average Moving Truck Expenses:  $248,268
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $110,602
• Average Advertising Expenses:  $100,223
• Average Facility Expenses:  $69,163
• Average Franchise Fees:  $122,605
• Average Support Staff Expenses:  $133,401
• Average Other Administrative Expenses:  $184,363
• Average Total Annual Expenses:  $1,331,450

• Average Total EBITDA:  $185,035
• Median EBITDA:  $185,035
• Highest EBITDA:  $185,035
• Lowest EBITDA:  $185,035

Year 4 of Operation

• Number of Single Franchises:  5

• Average Annual Gross Sales:  $1,729,060
• Median Annual Gross Sales:  $1,544,011
• Highest Annual Gross Sales:  $2,869,694
• Lowest Annual Gross Sales:  $739,345

• Average Direct Labor – Mover Wage Expenses:  $552,551
• Average Moving Truck Expenses:  $266,913
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $112,881
• Average Advertising Expenses:  $56,975
• Average Facility Expenses:  $68,365
• Average Franchise Fees:  $141,229
• Average Support Staff Expenses:  $246,329
• Average Other Administrative Expenses:  $127,513
• Average Total Annual Expenses:  $1,572,757

• Average Total EBITDA:  $156,303
• Median EBITDA:  $116,887
• Highest EBITDA:  $421,430
• Lowest EBITDA:  ($26,389)

• “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.

• “EBITDA” is calculated as Annual Gross Sales less Total Annual Expenses plus interest plus taxes plus depreciation.

Part 5 – Gross Sales and Expenses for Mod Market Franchises by Years of Operation

• The table below reflects average and median annual Gross Sales and expenses for Mod Market Franchises that completed their first, second, third, or fourth year of operation in 2023 and were still operating as of December 31, 2023.

Year 1 of Operation

• Number of Mod Market Franchises:  5

• Average Annual Gross Sales:  $843,766
• Median Annual Gross Sales:  $691,892
• Highest Annual Gross Sales:  $1,833,872
• Lowest Annual Gross Sales:  $414,245

• Average Direct Labor – Mover Wage Expenses:  $244,498
• Average Moving Truck Expenses:  $141,418
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $33,565
• Average Advertising Expenses:  $28,643
• Average Facility Expenses:  $30,911
• Average Franchise Fees:  $76,425
• Average Support Staff Expenses:  $108,106
• Average Other Administrative Expenses:  $72,696
• Average Total Annual Expenses:  $736,262

• Average Total EBITDA:  $107,484
• Median EBITDA:  $93,833
• Highest EBITDA:  $232,064
• Lowest EBITDA:  $24,760

Year 2 of Operation

• Number of Mod Market Franchises:  4

• Average Annual Gross Sales:  $594,194
• Median Annual Gross Sales:  $558,663
• Highest Annual Gross Sales:  $722,636
• Lowest Annual Gross Sales:  $536,815

• Average Direct Labor – Mover Wage Expenses:  $196,947
• Average Moving Truck Expenses:  $96,182
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $29,738
• Average Advertising Expenses:  $23,803
• Average Facility Expenses:  $40,498
• Average Franchise Fees:  $52,912
• Average Support Staff Expenses:  $44,661
• Average Other Administrative Expenses:  $57,217
• Average Total Annual Expenses:  $541,956

• Average Total EBITDA:  $52,238
• Median EBITDA:  $39,951
• Highest EBITDA:  $154,013
• Lowest EBITDA:  ($24,963)

Year 3 of Operation

• Number of Mod Market Franchises:  2

• Average Annual Gross Sales:  $900,015
• Median Annual Gross Sales:  $900,015
• Highest Annual Gross Sales:  $931,156
• Lowest Annual Gross Sales:  $868,874

• Average Direct Labor – Mover Wage Expenses:  $294,906
• Average Moving Truck Expenses:  $114,358
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $41,811
• Average Advertising Expenses:  $30,280
• Average Facility Expenses:  $46,969
• Average Franchise Fees:  $80,402
• Average Support Staff Expenses:  $89,709
• Average Other Administrative Expenses:  $47,685
• Average Total Annual Expenses:  $746,122

• Average Total EBITDA:  $153,893
• Median EBITDA:  $153,893
• Highest EBITDA:  $209,579
• Lowest EBITDA:  $98,208

Year 4 of Operation

• Number of Mod Market Franchises:  1

• Average Annual Gross Sales:  $1,086,234
• Median Annual Gross Sales:  $1,086,234
• Highest Annual Gross Sales:  $1,086,234
• Lowest Annual Gross Sales:  $1,086,234

• Average Direct Labor – Mover Wage Expenses:  $352,933
• Average Moving Truck Expenses:  $142,107
• Average Other Moving Expenses – Damages, Supplies, Other Direct Costs:  $38,937
• Average Advertising Expenses:  $15,023
• Average Facility Expenses:  $22,069
• Average Franchise Fees:  $98,262
• Average Support Staff Expenses:  $175,322
• Average Other Administrative Expenses:  $113,890
• Average Total Annual Expenses:  $958,544

• Average Total EBITDA:  $127,690
• Median EBITDA:  $127,690
• Highest EBITDA:  $127,690
• Lowest EBITDA:  $127,690

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