Two Men and A Truck franchises sell $2 million and earn 6-figure profits per year on average. Here's how to start one.
- A Pew study found that one in five U.S. adults moved due to the pandemic, or knew someone who did.
- Franchising with a company like Two Men and a Truck is one way to meet demand for moving services.
- Total initial investment starts at $100,000, and the average location sells $2.2 million per year.
- Visit the Business section of Insider for more stories.
Just about everyone eventually has to pack up their stuff and move it somewhere else. In an average year, US Census data shows that roughly 14% of the population moves, and due to the pandemic 22% of US adults either moved or knew someone who did, a Pew Research study found.
Cities and suburbs across the US are seeing an influx of new residents as people decamp from the crowded, expensive centers of New York City and San Francisco. This reshuffling of households and businesses presents a business opportunity, and franchising with a moving services company like Two Men and a Truck (TMAAT) is one way to meet it.
The 35-year-old company consistently ranks in the upper half of Entrepreneur Magazine’s Franchise 500 and has more than 350 locations across North America.
Behind its whimsical stick-figure branding, TMAAT offers a sophisticated system for growing a business that provides one of the most basic services: picking stuff up and putting it somewhere else.
Here’s what it takes to get started.
The cost of a new franchise ranges from $100,000 to $585,000, depending on market size
There’s a company saying, attributed to founder Mary Ellen Sheets, that goes “you can’t build a business from the back of a truck,” and the initial investment to open a franchise reflects that.
The cost of a new TMAAT franchise ranges from $100,000 to $192,000 for small markets and $179,000 to $585,000 for standard-sized ones. A large portion of that money is expected to go toward purchasing two trucks, moving equipment, and renting office space.
TMAAT’s bread and butter is providing packing and local moving services to homes and businesses, and franchisees can choose from several additional revenue streams to add to the mix, like on-site storage and retail sales of packing supplies.
The brand has more recently begun offering container-based moving and storage options, as well as junk removal services, both of which require additional investment in specialized equipment.
The average franchise sells $2.2 million per year
According to TMAAT’s franchise disclosure document, the average franchise makes $2.2 million per year in sales. Roughly half of that revenue goes to pay for trucks, labor, and supplies, while 8% is paid to TMAAT in royalty, advertising, and technology fees.
Margins in the first few years are tight as the business gets up and running, but after four years, the average location sees pre-tax earnings of more than $200,000.
Moving tends to be a seasonal business, with the strongest demand in the summer between Memorial Day and Labor Day, with the busiest days being the last weekend in June.
It takes 3 to 6 months to start up
A timeline on TMAAT’s website says the onboarding process takes between 3 and 6 months to complete the entire process of starting a new location, from a preliminary interview to a detailed business plan to closing the deal.
If you’re thinking about getting into this business this year, now would be the time to head over to the TMAAT franchising website and get started.
The first steps include checking to see which market areas are available and prepare for an initial interview with the TMAAT’s Franchising Director.
If you match well with the company, their team will walk you through the following stages, including drafting a business plan from a template they provide and a detailed review of the terms in the franchise disclosure document.
Source: Read Full Article