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

Section IV – News updates on the Units Moving and Portable Storage franchise opportunity

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 2024 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 2023 (57 traditional Unit franchises), 2022 (43 traditional Units franchises), and 2021 (28 traditional Units franchises)

• 2023 average and median annual revenues for the 2 affiliate Units locations that were open and in operation for the entire 2023 calendar year

• 2023 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 52 traditional Units franchises (open 12-24 months, open 24-48 months, open 48 months and longer, and all) and 2 affiliate Units locations (separately stated) that were open and in operation for the entire 2023 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

• Franchise Fee:  $55,500 to $222,000
• Real Estate:  $25,000 to $50,000
• Technology Systems and Initial Inventory:  $7,500 to $18,000
• Containers, Including Freight and Shipping:  $302,940 to $434,400
• Units Moving and Portable Storage Delivery System and Forklift:  $225,000 to $300,000
• Signage:  $200 to $5,000
• Grand Opening Advertising:  $10,000
• Training:  $1,500 to $5,000
• Additional Funds:  $80,000 to $200,000
• Total Estimated Units Moving and Portable Storage Franchise Costs:  $707,640 to $1,244,400

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

• 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

2021

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

2022

• Outlets at the Start of the Year:  44
• Outlets at the End of the Year:  60
• Net Change:  +16

2023

• Outlets at the Start of the Year:  60
• Outlets at the End of the Year:  70
• Net Change:  +10

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:  2
• Net Change:  -1

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

Section IV – News Updates on the Units Moving and Portable Storage Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Units Moving and Portable Storage Franchise (Item 19, 2024 FDD)

• This Item sets forth historical Gross Sales data for certain franchisee-owned Units markets achieved for the 2023 calendar year.

• As of December 31, 2023, there were 73 Units Businesses in operation, including 70 franchised locations and 3 affiliate locations (the “Affiliate Locations”). Three of the 70 franchised locations operate as fractional franchises (“Fractional Franchises”) and the remaining 67 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 67 Traditional Franchised Locations, 57 were open and in operation for the entire 2023 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 2023 (57 Traditional Franchises), 2022 (43 Traditional Franchises), and 2021 (28 Traditional Franchises).

• Part 2 sets forth the Average Annual Revenues for the 2 Affiliate Locations during the 2023 calendar year.

• Fifty-two of the Traditional Franchises provided the expense information the franchisor requested for the 2023 calendar year. Part 3 sets forth certain Revenue and Expense information for these 52 Traditional Franchises for the 2023 calendar year, and Part 4 sets forth certain Revenue and Expense information for the 2 Affiliate Locations for the 2023 calendar year.

Part 1 – Number of Units Franchises Within Certain Annual Sales Thresholds for Years Ending December 31, 2021, December 31, 2022, and December 31, 2023

2023

• Over $2,000,000:  1
• $1,000,000 to $1,999,999:  14
• $750,000 to $999,999:  8
• $500,000 to $749,999:  15
• $250,000 to $499,999:  19

2022

• Over $2,000,000:  1
• $1,000,000 to $1,999,999:  10
• $750,000 to $999,999:  8
• $500,000 to $749,999:  10
• $250,000 to $499,999:  14

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

Part 2 – Average Annual Revenue Information for the Affiliate Locations for the 2023 Calendar Year

• Average Annual Revenue:  $924,583
• Number Above/Below Average:  1 / 1
• Median Annual Revenue:  $924,583
• Over $1,000,000:  1
• $725,000 to $999,999:  1
• $500,000 to $724,999:  0
• $0 to $499,999:  0

• “Annual Revenues” is defined as the total gross revenues generated from the Traditional Franchised Locations and 2 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 2023, 57 Traditional Franchises; in 2022, 43 Traditional Franchises; and in 2021, 28 Traditional Franchises).

• The “Average Annual Revenues” for the 2 Affiliate Locations is determined by taking the sum of the affiliate Annual Revenues divided by the number 2.

• “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 2023 calendar year for the 2 Affiliate Locations disclosed in Part 2 was $1,013,183, and the Lowest Annual Revenue for these units was $835,983.

Part 3 – Franchisee Revenue/Gross Profit Information

Open 12-24 Months (Average)

Annual Revenues:  $468,108

Annual Direct Operating Expense

• Real Estate Expenses:  $168,837
• Labor Costs:  $110,183
• Marketing/Advertising:  $86,003
• Royalty:  $37,513
• Other Expenses:  $111,538
• Total:  $514,074

Annual Gross Profit:  -$45,966

Annual Gross Profit Margin:  -9.82%

Gross Profit Margin Over/Under:  6 / 8

Open 24-48 Months (Average)

Annual Revenues:  $621,854

Annual Direct Operating Expense

• Real Estate Expenses:  $173,767
• Labor Costs:  $129,187
• Marketing/Advertising:  $73,194
• Royalty:  $46,942
• Other Expenses:  $137,718
• Total:  $560,808

Annual Gross Profit:  $61,046

Annual Gross Profit Margin:  9.8%

Gross Profit Margin Over/Under:  8 / 9

Open 48 Months or Longer (Average)

Annual Revenues:  $1,072,637

Annual Direct Operating Expense

• Real Estate Expenses:  $235,621
• Labor Costs:  $181,331
• Marketing/Advertising:  $69,076
• Royalty:  $85,159
• Other Expenses:  $189,155
• Total:  $760,344

Annual Gross Profit:  $312,293

Annual Gross Profit Margin:  29.1%

Gross Profit Margin Over/Under:  9 / 12

All Locations (Average)

Annual Revenues:  $762,508 (100.0%)

Annual Direct Operating Expense

• Real Estate Expenses:  $194,173 (25.5%)
• Labor Costs:  $145,129 (19.0%)
• Marketing/Advertising:  $74,877 (9.8%)
• Royalty:  $59,837 (7.8%)
• Other Expenses:  $151,442 (19.9%)
• Total:  $625,458 (82.0%)

Annual Gross Profit:  $137,050 (18.0%)

Annual Gross Profit Margin:  17.8%

Gross Profit Margin Over/Under:  26 / 26

Part 4 – Affiliate Revenue/Gross Profit Information

Charleston

Annual Revenues:  $1,013,183

Annual Direct Operating Expense

• Real Estate Expenses:  $59,255
• Labor Costs:  $272,412
• Marketing/Advertising:  $88,068
• Royalty Fees (8%):  $70,923
• National Ad Fund Contribution (2%):  $18,317
• Annual POS ($400 per month):  $4,800
• Other Expenses:  $345,222
• Total:  $858,997

Annual Gross Profit:  $154,186

Annual Gross Profit Margin:  15.3%

Charlotte

Annual Revenues:  $835,983

Annual Direct Operating Expense

• Real Estate Expenses:  $71,869
• Labor Costs:  $142,591
• Marketing/Advertising:  $112,477
• Royalty Fees (8%):  $58,519
• National Ad Fund Contribution (2%):  $22,904
• Annual POS ($400 per month):  $4,800
• Other Expenses:  $364,753
• Total:  $777,913

Annual Gross Profit:  $58,070

Annual Gross Profit Margin:  6.9%

Both Locations (Average)

Annual Revenues:  $924,583 (100.0%)

Annual Direct Operating Expense

• Real Estate Expenses:  $65,562 (7.1%)
• Labor Costs:  $207,502 (22.4%)
• Marketing/Advertising:  $100,272 (10.8%)
• Royalty Fees (8%):  $64,721 (7.0%)
• National Ad Fund Contribution (2%):  $20,610 (2.2%)
• Annual POS ($400 per month):  $4,800 (0.5%)
• Other Expenses:  $354,988 (38.4%)
• Total:  $818,455 (88.5%)

Annual Gross Profit:  $106,128 (11.5%)

Annual Gross Profit Margin:  11.5%

• “Annual Revenues” is defined as the total gross revenues generated from the 52 Traditional Franchised Locations that were in operation for the entire 2023 calendar year and that submitted the financial information the franchisor requested (for purposes of Part 3), and the total gross revenues generated from the 2 Affiliate Locations with operations during the entire 2023 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 39 Franchise Locations and 2 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.

• 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) ⬇️