NorthStar Moving Franchise Costs, Fees & FDD

Year Business Began: 1994

Franchising Since: 2015

Headquarters: Northridge, California

Estimated Number of Units: less than 10

Franchise Description: The franchisor is NorthStar Franchising, LLC. The franchisor grants the right to operate a business offering moving services and related services that may include packing and the sale of boxes, packing materials and storage services. Franchisees offer both commercial and household moving and other relocation services and related products.
Training Overview: Before franchisees commence operation of their business, the franchisor will train them and one additional person. The franchisor will provide approximately 10 days of training (although the specific number of days depends on its opinion of the franchisee’s experience and needs) in the Los Angeles, California area, or another location the franchisor designates in addition to some training videos. The franchisor may also provide refresher programs to franchisees and their experienced managers. Such programs are not mandatory at this time, but may be deemed mandatory in the future.

Territory Granted: Franchisees will be granted a specific geographic territory that will be identified in the Franchise Agreement in which to operate and locate their business. The location and size of the territory will be decided on by discussions between the franchisee and the franchisor. Many factors may be used to determine territory, including population. Typically, a territory contains populations of 100,000 to 400,000 people (according to the most recent U.S. Census data available at the time the franchisee and the franchisor sign the agreement). So long as the Franchise Agreement is in force and effect and franchisees are not in default, neither the franchisor nor its affiliates will locate, or grant a franchise for another NorthStar Moving Company to be located within the territory.

Obligations and Restrictions: Franchisees must personally participate in the day to day management of the business for at least the first two years of operation. After that, they are permitted to hire a designated manager. All owners of the franchisee entity and their spouses must also sign a Guaranty and Assumption of Obligations in a form acceptable to the franchisor. The franchisor requires franchisees to offer and sell only those services or products that it has approved.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, renewal is for one additional term of 10 years and then three additional five-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$50,000	$50,000
Training Expenses	$1,500	$5,000
Leased Trucks	$12,000	$22,000
Moving Equipment, Uniforms and Supplies	$5,000	$11,000
Rent and Security Deposit	$0	$20,000
Office Furniture	$1,000	$4,000
Computer System and Office Equipment	$3,000	$9,000
Initial Marketing	$20,000	$45,000
Licensing and Utility Deposits	$1,500	$7,000
Legal and Accounting Fees	$2,000	$8,000
Insurance Premiums	$3,500	$9,000
Additional Funds – 3 months	$15,000	$30,000
ESTIMATED TOTAL	$114,500	$215,000

 
Other Fees

Type of Fee	Amount
Royalty	7.5% of gross revenues.
Marketing Fee	2% of gross revenues.
Technology Fee	The greater of 0.5% of gross revenues or $300 per month.
Call Center Fee	4% - 9% of gross revenues of each move referred to from the call center.
Claims Settlement Assistance	Reasonable fee and all costs and expenses.
Long Distance Coordination Assistance Fee	Currently $0.10 per cubic foot per move or $100 minimum.
Bookkeeping Service Fee	$300 - $1,500 per month based on the number of years the business has operated, the size of the operation and the services to be provided.
Audit Fee	Cost of audit.
Late Fee	$25 per day.
Interest on Late Payments	1.5% per month not to exceed the maximum amount permitted by applicable law.
Additional Training or Assistance	Reasonable fee.
Renewal Fee	$2,000
Transfer Fee	50% of the then-current initial franchise fee.
Seminar and Convention Cost	Reasonable fee.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Taxes	Actual cost.
Dispute Resolution Fee	$25,000 plus actual costs.

The above information has been compiled from the FDD of NorthStar Moving. Year of FDD: 2024.

Franchise Direct's Disclaimer