The storage franchise is a perfect business model for the current economic situation. Aside from the actual storage facilities, you do not need to replace your inventories and buy new equipment. As the rule of thumb, service-based franchises are cheaper than retailing counterparts. The storage franchise (especially the self-storage franchise) is an example of a service provider, which can run 24 hours with minimal overhead costs. Therefore, the storage franchise can provide huge returns with modest investments.
The bigger the storage franchise the better.
Strong advertising exposures, positive testimonials and impressive facilities are some of the benefits of the storage and self-storage franchise.
As the independent storage business you can still win a lot of customers.
However, most of your clients will come from the surrounding areas. The storage and self storage franchise has an advantage to direct customers to different locations through internet marketing, pamphlets and even television. Indeed, the brand does matter! Few people may know that "Mr Storage" is in the area.
However, many will know that the Storage King is few kilometers from your house. If you decide to purchase a storage franchise then ensure, that it is a self-storage business model. This will guarantee low working capital, fewer employees and minimal use of the on-site equipment.
There are few very reputable storage franchise brands: Storage King, Grace Removals Group and the affordable Zippy Shell.
All of these operators offer 24 hours self-storage service.
Some, like Zippy Shell provides mobile storage services.
Currently, the mobile options are the cheapest and very popular among customers. Your self-storage franchisor must ensure that you have an access to the standarised insurance and security services. The same applies to advertising.
What's more, the franchisees should get facilities which provide a similar floor plan across all outlets. It is not good for the business to confuse customers with different types of premises. Although, the self storage franchise is a good investment the cost to purchase the business is substantial.
The initial cost for a self-storage franchise is about $50K-$70K. The rent or purchase of premises and the working capital are additional expenses. The initial price for mobile self storage franchises is also around $50K mark. However, the running cost is much less than the conventional self-storage businesses.
In Australia, the storage businesses are very profitable. This is the reason why there are so few franchises among self storage operators. If the conventional self storage franchise is not available then you can always try a mobile solutions. There are distributors of storage containers, which can help you organise the necessary equipment.