Do you want to start Two Men and a Truck franchise and want to know the fees, agreement, details? If YES, here’s how much it cost to buy Two Men and a Truck franchise.
A moving company is a company that helps people and businesses move their goods from one place to another. It offers all inclusive services for relocations like packing, loading, moving, unloading, unpacking, arranging of items to be shifted.
The U.S. Census Bureau estimates that over 40 million united states citizens move annually over the last decade. Out of these people that have moved in the United States, 84.5% of them have moved within their own state, 12.5% have moved to another state, and 2.3% have moved to another country.
The moving industry is a very viable and lucrative industry because of people’s penchant to move around once in a while. In fact, the industry is estimated to have employed 122,600 people and having an annual payroll of $3.6 billion.
Two Men and A Truck is part of the success story of the moving industry in the United States, as the company has not only materialized, but has carved a good niche for itself in the industry over the years.
If you want to become part of the moving industry to help your clients haul their properties from one part of town or the state to the other, then you can look into acquiring the franchise of this moving business called Two men and a truck. Here are the things you need to know about the Two men and a truck franchise.
Buying Two Men and a Truck Franchise for Sale and How Much It Cost
Franchise Requirements for Two Men and a Truck
Mini market minimum requirements for opening a two men and a truck franchise are $80,000 in liquid assets and $160,000 in net worth. Standard marketing area capital requirement is $150,000 in liquid assets and $400,000 in net worth.
To get your Two men and a truck franchise off the ground, mini-market start-up costs typically run between $115,000 and $276,000 and standard market start-up costs run between $210,000 and $670,000 depending on several variables including authority fees which vary by state, store location and trucks.
Capital and loans
Two men and a truck provides some sort of financing for its franchisees. These finances are designed to help their intending franchisees get through the funding process. They offer help with SBA, bank, or a financial institution loan. With the average startup cost ranging from $115,000 to $670,000, their franchisees have many options to help fund their franchise investment.
Two men and a truck is a franchise brand that passionately supports the heroes of the United States, and as such they are members of the Vet Fran Association and work together to provide access and opportunities in franchising to the nation’s Veterans. As members of Vet Fran, provide Veterans of the U.S. armed forces and their spouses a 10% discount on the $50,000 franchise fee.
Initial Investment – $115,000 to $669,000
Net-worth Requirement – $160,000 to $400,000
Liquid Cash Requirement – $80,000 to $190,000
Initial Franchise Fee – $30,000 to $85,000
Ongoing Royalty Fee – 6%
Ad Royalty Fee – 1%
Miscellaneous Start-up Expense: $23,000 to $45,000
Insurance and Risk Management: $25,000 to $43,000
Licensing Requirements: $500 to $80,000
Legal and Accounting Fees: $1,000 to $2,000
Trucks: $50,000 to $270,000
Initial Marketing Expenses: $20,000 to $40,000
Additional Funds – 3 Months: $20,000 to $50,000
Pre-Opening Training Costs: $2,500 to $6,000
Total Estimated Initial Investment (for a new franchisee purchasing an area where the company has had no prior presence): $209,400 to $634,000
Total Estimated Initial Investment (for a new franchisee purchasing an area where the company has had a presence): $244,400 to $669,000
Two men and a truck offer franchisee training to the tune of 15 hours. Most of the training hours are spent in the classroom while the other part is spent in the field. The company also offers additional training at their headquarters but this one is reserved for multi-unit franchisees.
Number of Employees Required to Run
Two men and a truck is typically run as a small business. In fact, it takes just two men and a truck to run the business on a very small scale. But ideally, the business would require between 3 to 10 men to run depending on the scale you want to start it.
You will need at least 1,000 square feet of office space to operate a Two Men and a Truck franchise. You must also have space available to park your trucks on site or within a reasonable proximity to your site, as approved by the franchisor. The franchisor estimates that your rent will be between $1,200 and $14,000 a month, depending on the size, condition, and location of the leased premises.
The franchisor also requires that your security deposit will be equal to one or two months’ rent.
Additional Startup expenses
Additional start-up expenses that would be incurred when opening a Two men and a truck franchise would include computer hardware (office, truck, and training), telephone installation, telephone deposit, copier, initial inventory of boxes, boards (bulletin or white board), minimum initial advertising campaign, supplies, miscellaneous moving equipment, and other miscellaneous expenses.
The franchisor currently requires that franchisees carry the following insurance policies, with the coverage and amounts described, as a minimum: commercial General Liability Insurance coverage; motor vehicle liability coverage; cargo insurance; umbrella policy; business personal property insurance; employee dishonesty insurance; workers’ compensation coverage; employment practices liability insurance and third party discrimination liability coverage; and all other insurance coverage required by the law where the franchisee is located or that the franchisor otherwise requires.
Cost of trucks
You will be required to own or lease at least two or three trucks at start up. You may also be required to obtain a specified number of additional trucks within a specified time period after opening. The actual number of initial trucks and any required additional trucks will be specified and agreed to before signing the Franchise Agreement.
These requirements may vary based on the franchisee’s experience, the demographics of the Marketing Area, the density of the population, whether the area is a metro area, and other reasonable factors determined by the franchisor.
Used trucks generally cost between $15,000 and $60,000 each. New trucks generally cost between $45,000 and $95,000 each.
Trucks must meet the franchisor’s specifications for appearance.
Many franchisees do finance or lease their trucks. If you finance the trucks, the franchisor estimates that you will be required to pay approximately 10% down (between $15,000 and $30,000 for three trucks) and should be able to finance the balance over a four to six year period.
Your monthly payments will vary depending on the cost of the trucks, the time period of the financing, and the interest rate. If you lease the trucks, your down payment and monthly payments will probably be less.
A Brief Overview of Two Men and a Truck Franchise
- Business established – 1985
- Franchise date – 1989
- Headquarters – Lansing, Michigan, United States
Two Men And A Truck is a moving company that has its headquarters in Lansing, Michigan. The company has franchises in 43 U.S. states, as well as in the United Kingdom, Canada and Ireland. The company is currently the largest franchised moving company in the United States and it boasts of more than 340 locations.
The company was founded in the early 1980s by the Lansing brothers Brig Sorber and Jon Sorber. As of June 2015, the business experienced 67 months of revenue growth, 51 consecutive record months, while maintaining a 96% customer referral rating.
New locations were also growing faster than ever. This growth contributed to the company’s ranking on the Inc. 5000 list with companies such as Microsoft and Zappos. In 2014, the company had a record number of expansions, doubling the number set in any year.
Today, the widely respected company has more than 330 locations worldwide, 2,100 trucks on the road, 8,000 employees during peak season, and it performed its five millionth move June 2014. Two men and a truck have received a lot of accolades and they include;
- Voted a “Top 50” franchise in the Franchisee Satisfaction Awards by Franchise Business Review in 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015. Ranked #20 in 2015.
- Rated in Franchise 500 – Entrepreneur magazine-1993, 1994, 1996, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014 and 2015
- Ranked #1 in Entrepreneur’s moving/junk removal category
- Placed in the top 20 for 2016 Best for Vets, Military Times
Overall the company operates 350 locations and 2,600 trucks. The company has seen consistent monthly growth dating back to December 2009 and more than 70 months of consecutive record growth. Each location is independently owned and operated.
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