An Overview of Moving and Storage Franchises
Franchises under this heading primarily fall into three areas: moving and storage, obviously, but also junk removal. Here’s a little on each industry segment.
Moving
Moving is a quite common occurrence in the United States. According to the latest figures, via the (now defunct) American Moving & Storage Association, 11.2% of Americans move annually. This equates to about 35.1 million people, or 15.3 million households (at the current 2.3 persons per household).
A segment of the moving franchise industry that has really developed in the past few years in senior relocation. These franchises cater to the specific “challenges those in transition face as they move either into a new home, into a family member’s house, or an assisted living facility,” as Caring Transitions puts it.
Storage
When it comes to stuff, Americans tend to have a lot—more than their homes can handle sometimes. An estimated 9% of U.S. households currently rent a self-storage unit. Overall, the U.S. self-storage industry brings in $38 billion in revenue a year. In addition to when people don’t have space at home, storage franchises and facilities are also used when people are moving, remodeling or renovating, and for various other reasons such as a place to keep business archives for those who work-from-home.
Junk Removal
Junk removal has emerged as an in-demand, related service to moving and storage franchises. The need for junk removal commonly occurs around the same time as the need for moving and/or storage services arises—when homeowners are decluttering and/or downsizing. Junk removal franchises are also utilized when homeowners remodel or renovate their homes.
Estate Sales
Estate sales are also a related service to the moving and storage franchise industry. Estate sales are often held by family members of someone who has recently passed away. They are also commonly held when an older person, or persons, are downsizing and need to get rid of more items that are typical than in a garage sale. Estate sales can also be held in the event of item liquidation because of divorce or debt.
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Franchises in these areas include: Blue Moon Estate Sales, Caring Transitions, College Hunks Hauling Junk, College Hunks Moving, Junk King, Junk-It, Junkluggers, UNITS Moving & Portable Storage, VaVia Dumpster Rental, You Move Me, and more!
Eco-Friendly Becoming the Standard
In an effort to keep as many items as possible out of dumps and landfills, many of these franchises—the junk removal ones in particular—find the best and most eco-friendly use for unwanted items. It’s not common for companies to load items and organize their trucks based on what can be donated or recycled.
For instance, since opening in 2001 Junkluggers has been able to keep over 50 million pounds out of landfills and “benefited over 100,000 people.” According to the company, that represents donations totaling over one million dollars’ worth of items on behalf of its customers. “Making a difference within our communities and environment is the heart of what we do,” says Josh Cohen, CEO and founder.
For another example, Junk-It packs its “trucks to sort recyclables in our warehouse and develop local and national recycling relationships to minimize dump fees and maximize recycling income for our franchise partners.”
Initial Investment and Opening Costs for Moving and Storage Franchises
The opening costs for prospective moving and storage industry franchisees can depend on many factors, including but not limited to: the business system and execution requirements, the size of the territory the franchisee desires, whether the franchisee is opening a physical office and more.
The good news for moving and storage franchisees is most franchise opportunities in this field are mobile and can be run from home. This business setup can drastically reduce start-up costs. However, in many cases, initial investment will need to be made towards at least one vehicle and any specializations it may need to optimize business.
Franchisors offer estimates in their Franchise Disclosure Document (FDD) based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Benefits of Being a Moving and Storage Franchisee
The benefits of owning a franchise can be numerous vs. independent operation. Here are a few of the top benefits for those who decide to own a moving and storage franchise instead of going at it alone.
Name Recognition: When it comes to finding a service provider, people tend to deal with someone they have a familiarity with. Franchises tend to have established brand names that, in many instances, have been around for years. If you buy a moving and storage franchise, you will be given the right to associate your business with that franchise company's name, trademarks, and logo.
As Blue Moon Estate Sales says, “It takes a great deal of time to be trusted in the estate sale culture and our clients trust the brand.”
Advertising: Getting your name out there can be expensive and sometimes it can be hard to know where to spend your advertising and marketing budget. With a franchise, national advertising is typically done by the franchisor. In addition, though in general local advertising is up to you, you’ll have guidelines in place.
Training & Support: A popular feature with all franchises is the training provided. While in business, franchisees will have access to the franchisor’s operations manual, computer systems, and other items designed to help you successfully manage your franchise.
Flexibility: Some franchisees want to be in the trenches and be as hands-on as possible, doing the work while running the business. Others want a more semi-absentee franchise where they can dedicate as little as 10-15 hours per week to the business while a qualified manager takes care of the day-to-day details. Fortunately for prospective franchisees, this industry offers numerous options for both desires.