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.
| Reason | Description |
|---|---|
| Growing Demand | The storage industry is experiencing continuous growth due to increased demand from both residential and commercial customers. |
| Stable Income | Self-storage businesses offer a reliable and steady income stream, thanks to long-term lease agreements and relatively low operational costs. |
| Flexibility | As the owner, you have the flexibility to set your own schedule and manage the business according to your preferences and availability. |
| Low Maintenance | Self-storage facilities require minimal maintenance, making it easier to manage day-to-day operations with fewer ongoing expenses. |
| Scalability | With 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:
1. Location (9/10):
- Proximity to residential and commercial areas with high demand for storage.
- Accessibility and visibility of the franchise site.
2. Franchise Reputation (9/10):
- A well-established and reputable brand with a proven track record.
- Positive customer reviews and testimonials.
3. Initial Investment (8/10):
- Total startup costs, including franchise fees, real estate, construction, and equipment expenses.
- Availability of financing options or assistance.
4. Training and Support (8/10):
- Comprehensive training programs for franchisees and staff.
- Ongoing support in marketing, operations, and customer service.
5. Competitive Advantage (7/10):
- Differentiating factors that set the franchise apart from competitors.
- Unique features, services, or pricing strategies.
6. Demand and Market Analysis (7/10):
- Market research to assess local demand for storage services.
- Understanding of the competitive landscape in the chosen location.
7. Size and Capacity (6/10):
- The size and number of storage units available for rent.
- Scalability options for future growth.
8. Lease Terms (6/10):
- Favorable lease agreements with reasonable rent terms and flexibility.
- Clear understanding of lease obligations and responsibilities.
9. Security and Safety (8/10):
- State-of-the-art security measures, including surveillance, access control, and alarms.
- Adequate safety precautions to protect customers’ belongings.
10. Marketing and Branding Support (7/10): –
- Marketing materials and strategies provided by the franchise.
- Assistance in building a strong local brand presence.
11. Exit Strategy (6/10):
- Options for selling or exiting the franchise in the future.
- A clear understanding of resale value and conditions.
12. Customer Service and Satisfaction (8/10):
- Commitment to excellent customer service and handling customer inquiries and issues.
- Customer feedback mechanisms and improvement processes.
| Criteria | Description | Importance (Scale 1-10) |
|---|---|---|
| 1. Location | Proximity to high-demand areas. Accessibility and visibility of the site. | 9 |
| 2. Franchise Reputation | Established and reputable brand. Positive customer reviews and testimonials. | 9 |
| 3. Initial Investment | Startup costs, including fees and expenses. Availability of financing options. | 8 |
| 4. Training and Support | Comprehensive training programs. Ongoing support in marketing and operations. | 8 |
| 5. Competitive Advantage | Factors that differentiate from competitors. Unique features or pricing strategies. | 7 |
| 6. Demand and Market Analysis | Local demand assessment. Understanding of the competitive landscape. | 7 |
| 7. Size and Capacity | Number and size of available storage units. Scalability options for growth. | 6 |
| 8. Lease Terms | Favorable lease agreements. Clear lease obligations and flexibility. | 6 |
| 9. Security and Safety | State-of-the-art security measures. Safety precautions for customer belongings. | 8 |
| 10. Marketing and Branding Support | Provided marketing materials and strategies. Assistance in local branding. | 7 |
| 11. Exit Strategy | Options for future selling or exit. Understanding of resale value and conditions. | 6 |
| 12. Customer Service and Satisfaction | Commitment to excellent customer service. Feedback mechanisms and improvements. | 8 |
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 Name | Initial Investment Range | Franchise Fee | Liquid Capital Requirement | Royalty Fee |
|---|---|---|---|---|
| UNITS Movable and Portable Storage | $686,700 - $1,285,000 | $55,500 | N/A | 8% monthly + 2% marketing |
| Storage Authority | N/A | $39,000 | $1,000,000 - $3,500,000 | 6% monthly + 2.5% marketing |
| Extra Space Storage | $5,000,000 - $8,000,000 | N/A | $800,000 | N/A |
| MyWay Mobile Storage | $178,800 - $755,100 | $40,000 | $57,900 - $72,400 | 3% |
| Zippy Shell | $657,450 - $1,060,530 | $75,000 | $24,000 - $48,000 | N/A |
| U-Haul | N/A | N/A | N/A | N/A |
| GarageTown USA | N/A | N/A | N/A | N/A |
| PODS | $1,200,000 - $2,000,000 | $75,000 | $400,000 | N/A |
| 1-800-PACK-RAT | N/A | N/A | N/A | N/A |
| Big Box Storage | N/A | N/A | N/A | N/A |
| Smartbox Portable Self-Storage | $750,000 - $1,500,000 | N/A | $300,000 - $400,000 | N/A |
| CubeSmart Self Storage | N/A | $20,000 | N/A | N/A |
| Guardian Storage | N/A | N/A | N/A | N/A |
| Universal Storage Group | N/A | N/A | N/A | N/A |
| Go Mini's | $342,804 - $662,704 | $45,000 | N/A | 8% monthly + 2% marketing |
How 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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