For entrepreneurs seeking opportunities in the storage industry, franchising can provide a promising path. With established brand recognition and operational support, franchise businesses offer a competitive advantage. Here are 15 storage franchise businesses to consider, ranging from traditional self-storage facilities to specialized services.
What is a storage franchise business?
A storage franchise business is a type of business model that allows investors to use the name, brand, and established business model of an existing storage company to provide storage services. These services may include self-storage facilities, portable storage solutions, and other related services.
The Storage Industry in 2023
The self-storage industry is projected to continue its upward trend in 2023, driven by growing demand from residential and commercial clients.
With advancements in technology and automation, the industry is also adapting to changing customer needs, such as contactless rentals and smart storage solutions. As a result, storage businesses are expected to see increased competition and innovation in the coming years. Self-storage can also be among the top winter business ideas since people often rely on these facilities to store boats or summer vehicles.
Why should you consider starting a self-storage business?
Starting a self-storage business can be a profitable and fulfilling venture, with many benefits to consider. Here are five reasons why you should consider starting a storage franchise in 2023:
- Growing demand: The storage industry is projected to continue its upward trend, driven by growing demand from residential and commercial clients.
- Stable income: Self-storage businesses typically offer a steady stream of income, with long-term leases and low overhead costs.
- Flexibility: As the owner of a self-storage business, you have the flexibility to set your own hours and manage the business on your own terms.
- Low maintenance: Self-storage facilities require minimal maintenance, with few moving parts and low upkeep costs.
- Scalability: With the right strategy and investment, a self-storage business can be scaled up to accommodate a larger client base and generate greater profits.
Stable IncomeSelf-storage businesses offer a reliable and steady income stream, thanks to long-term lease agreements and relatively low operational costs. FlexibilityAs the owner, you have the flexibility to set your own schedule and manage the business according to your preferences and availability. Low MaintenanceSelf-storage facilities require minimal maintenance, making it easier to manage day-to-day operations with fewer ongoing expenses. ScalabilityWith the right strategies and investments, you can scale up your self-storage business to accommodate more customers and increase profitability over time.
Choosing Your Storage Franchise
Storage franchises provide individuals or investors with the chance to own and operate their own storage facility while leveraging the brand, support, and expertise of an established storage company.
Self-storage facilities are popular because they provide individuals and businesses with a convenient and secure place to store their belongings, making them a potentially lucrative business opportunity.
Here are some key points to consider if you’re interested in starting a storage franchise business:
- Franchise Options: There are various storage franchise companies to choose from, each with its own business model, requirements, and support systems. Some well-known storage franchise brands include Public Storage, Extra Space Storage, and U-Haul.
- Location: The location of your storage facility is crucial to your success. You’ll want to choose an area with sufficient demand for storage units, such as a growing residential or commercial area. Accessibility and visibility are also important factors.
- Investment Costs: Franchise costs can vary significantly depending on the brand and the size of the facility you plan to operate.
Costs may include franchise fees, real estate acquisition or leasing expenses, construction or renovation costs, and operational expenses.
- Support and Training: Most storage franchise companies provide training and ongoing support to help franchisees get started and run their facilities effectively. This support may include marketing assistance, operational guidance, and access to the franchisor’s network and resources.
- Regulations and Compliance: Self-storage facilities are subject to various regulations, zoning requirements, and building codes. You’ll need to ensure that your facility complies with all local, state, and federal laws and regulations.
- Marketing and Promotion: Successful storage franchises often require effective marketing and advertising strategies to attract customers. Franchisors may provide marketing materials and strategies, but you may also need to implement local marketing efforts to reach your target audience.
- Competitive Landscape: Be aware of the competition in your chosen location.
Analyze the strengths and weaknesses of existing storage facilities and determine how you can differentiate your business.
- Management and Staffing: Consider your staffing needs and management structure. You may need to hire staff to handle customer inquiries, facility maintenance, and security.
- Security and Insurance: Security is a top concern for customers storing their belongings, so investing in robust security measures is essential. You’ll also need to have insurance coverage to protect against potential liabilities.
- Long-Term Planning: Develop a business plan and long-term strategy for your storage franchise. Consider factors such as expansion opportunities, customer retention, and exit strategies.
LocationChoose a strategic location with sufficient demand, accessibility, and visibility for your storage facility. Investment CostsDetermine the overall investment, including franchise fees, real estate expenses, construction/renovation, and ongoing operational costs. Support and TrainingAssess the level of training and ongoing support provided by the franchisor, including marketing assistance and operational guidance. Regulations and ComplianceEnsure compliance with local, state, and federal regulations, zoning requirements, and building codes for your facility.
Marketing and PromotionDevelop effective marketing strategies to attract customers, combining franchisor-provided materials with local efforts. Competitive LandscapeAnalyze the competitive landscape in your chosen location to identify opportunities for differentiation. Management and StaffingPlan for staffing needs, including roles for handling customer inquiries, facility maintenance, and security. Security and InsuranceInvest in robust security measures to address customer concerns and secure appropriate insurance coverage for liability protection.
Long-Term PlanningDevelop a comprehensive business plan that includes strategies for expansion, customer retention, and potential exit strategies.
Top Storage Franchise Opportunities
Explore the best storage unit franchises available in the market. From self-storage to portable storage, these franchises offer profitable business models and a chance to be a part of a growing industry.
1. UNITS Movable and Portable Storage
UNITS Moving and Portable Storage is a franchise that requires an initial investment ranging from $686,700 to $1,285,000, in addition to a $55,500 franchise fee. Franchisees also pay a monthly 8% royalty and a 2% marketing fee.
2.
Storage Authority
Storage Authority is a franchise with a $39,000 franchise fee and optional one-time fees of $27,000 for development guidance and $3,000 for a customized website. The franchise also has a monthly 6% royalty fee and a 2.5% fee for marketing, sales, technology, and website. Franchisees need $1 million to $3.5 million in liquidity to get started.
3. Extra Space Storage
Extra Space Storage requires a liquidity of $800,000 and a net worth of $2,000,000 to become a franchisee.
The total investment needed ranges from $5,000,000 to $8,000,000 making this one of the more expensive franchises.
4. MyWay Mobile Storage
MyWay Mobile Storage is a franchise business with an initial fee of $40,000 and a total investment ranging from $178,800 to $755,100. The company requires a working capital of $57,900 to $72,400 and has a 3% royalty fee. Veterans receive a 20% discount on the franchise fee.
The company has a liquid capital of $250,000.
5. Zippy Shell
Zippy Shell is a franchise business with an initial fee of $75,000 and a total investment ranging from $657,450 to $1,060,530. The company requires a working capital of $24,000 to $48,000.
6. U-Haul
U-Haul is seeking new local partners in the US and Canada for its neighborhood dealer program.
The program has been running since 1945 and offers small businesses the chance to create a second income stream by offering space on their lots for U-Haul trucks and trailers. Partnerships are simple, with no financial commitment, and dealers earn commissions off equipment transactions originating from their locations. Commissions can reach up to 22% per transaction.
7. GarageTown USA
GarageTown USA offers investment opportunities to accredited investors as a hedge against inflation.
They are also seeking suitable land opportunities for building new GarageTown locations, and owning the land can be a profitable investment. The company also partners with local contractors and real estate investors in select markets to create mutually beneficial solutions. Interested parties can fill out a form on the company’s website to get started with their investment journey.
8. PODS
PODS is a franchise business with a net-worth requirement of $1,000,000 and a liquid cash requirement of $400,000.
The initial investment ranges from $1,200,000 to $2,000,000 with an initial franchise fee of $75,000.
9. 1-800-PACK-RAT
1-800-PACK-RAT offers partnership opportunities to Key, Restoration, and Philanthropic Partners. Key Partners can benefit from the company’s network of containers, trucks, and warehouses. Restoration Partners are trusted companies that use 1-800-PACK-RAT’s portable solutions. Philanthropic Partnerships enable the company to give back to the community.
Recently, they formed a National Partnership with Homes For Our Troops. The company prioritizes customer service and innovative moving services and storage solutions for its partners.
10. Big Box Storage
Big Box Storage offers a unique and convenient storage solution to residents and businesses in San Diego County at a lower price than competitors. Customers load their belongings into a “Big Box” storage container, which is then picked up and stored in one of the company’s secure facilities.
Customers can access their belongings seven days a week. Big Box Storage has become San Diego’s leading storage company through its commitment to quality service and has been repeatedly voted as “Best Storage Company” by the San Diego Reader. The company also offers long-distance shipping services.
11. Smartbox Portable Self-Storage
Smartbox Portable Self-Storage requires a liquid capital of $300,000 to $400,000, and the total investment ranges from $750,000 to $1,500,000.
The company also offers a $500 discount on the package price for veterans.
12. CubeSmart Self Storage
CubeSmart Self Storage is a self-storage company that offers storage units in various sizes to residential and commercial customers. They provide 24/7 on-site management and have climate-controlled storage options available. CubeSmart is one of the largest self-storage providers in the country.
They have a franchise fee of $20,000 per facility.
13. Guardian Storage
Guardian Storage is a storage company with a mission to provide an exceptional experience and peace of mind to its customers. Its core values include superior customer service, convenient features, and benefits, advanced security, community support, and environmental consciousness, and is locally owned and operated. Guardian Storage is committed to sustainability and supporting local communities and offers a referral program with rewards of up to $100 for each new customer.
14.
Universal Storage Group
Universal Storage Group (USG) is a renowned self-storage solutions provider in the US, with over 30 years of experience worldwide. Founded in 2013, USG offers full-service third-party management, training programs, and start-up or conversion services, and uses world-class marketing and operational techniques. USG strives for superior financial results and is dedicated to industry activism at the local, national, and international levels.
15. Go Mini’s
Go Mini’s is a franchise opportunity that requires a $45,000 fee, with a reduced rate of $36,000 for veterans.
The total cost of the franchise ranges from $342,804 to $662,704. Additionally, there is an 8% royalty fee based on gross sales, with a monthly minimum of $400 and a 2% marketing fund based on gross sales.
Franchise NameInitial Investment RangeFranchise FeeLiquid Capital RequirementRoyalty Fee UNITS Movable and Portable Storage$686,700 - $1,285,000$55,500N/A8% monthly + 2% marketing Storage AuthorityN/A$39,000$1,000,000 - $3,500,0006% monthly + 2.5% marketing Extra Space Storage$5,000,000 - $8,000,000N/A$800,000N/A MyWay Mobile Storage$178,800 - $755,100$40,000$57,900 - $72,4003% Zippy Shell$657,450 - $1,060,530$75,000$24,000 - $48,000N/A U-HaulN/AN/AN/AN/A GarageTown USAN/AN/AN/AN/A PODS$1,200,000 - $2,000,000$75,000$400,000N/A 1-800-PACK-RATN/AN/AN/AN/A Big Box StorageN/AN/AN/AN/A Smartbox Portable Self-Storage$750,000 - $1,500,000N/A$300,000 - $400,000N/A CubeSmart Self StorageN/A$20,000N/AN/A Guardian StorageN/AN/AN/AN/A Universal Storage GroupN/AN/AN/AN/A Go Mini's$342,804 - $662,704$45,000N/A8% monthly + 2% marketingHow to Choose the Best Franchise to Set Up Your Storage Business
Choosing the right franchise is crucial to the success of your storage business. Here are four key factors to consider when selecting the best franchise for you:
1. Industry Experience
Franchise businesses with a proven track record in the storage industry can offer valuable insights and support to help you get started.
2.
Brand Recognition
Like many franchise food business ideas, established franchises with a recognized brand can give your business a competitive advantage and attract more customers.
3. Training and Support
Look for franchises that offer comprehensive training and ongoing support to help you navigate the challenges of starting and running a storage business.
4. Financial Considerations
Consider the initial investment, ongoing fees, and other financial obligations of the franchise to ensure that it aligns with your budget and long-term financial goals.
How much does it cost to open a storage unit franchise?
The cost of opening a storage unit franchise can vary widely depending on factors such as the franchise brand, location, and size of the facility. However, the initial investment can range from tens of thousands to millions of dollars.
Is owning a self-storage franchise profitable?
Owning a self-storage franchise can be profitable with the right strategy and execution.
Growing demand for storage, the popularity of shipping container business ideas, and partnerships with companies like Amazon DSP can create opportunities for success in the logistics business.
How do storage facilities make money?
Storage facilities make money primarily through rental income from tenants who pay to store their belongings. With a range of rental business ideas, such as wine storage or portable storage solutions, storage facilities can offer additional services to generate more revenue.
Which storage franchise provides portable storage containers?
Our franchise guide includes various options for portable storage containers. Many storage franchises provide this service, including PODS, 1-800-PACK-RAT, SMARTBOX, and U-Haul. There may be other storage franchises that offer portable storage containers as well, but these are some of the most popular ones.
How much net profit does a storage owner make?
A storage owner’s net profit varies based on factors like location, expenses, and competition.
You can research the profitability of specific franchise opportunities along with what is a franchise, the pros and cons of franchising, as well as the reasons to buy a franchise. With all of this information, you can make an informed decision about which storage franchise is the best fit for you.
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This article, "15 Storage Franchise Businesses to Consider" was first published on Small Business Trends
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