Reach Your Financial Goals With a Moving Franchise
Buying a moving services franchise can help you reach your financial and entrepreneurial goals. The relocation industry enjoys steady growth and excellent profit margins. The rise of remote work and the growing demand for housing are raising migration rates around the country. Owning a moving franchise makes you more competitive in a burgeoning market with cost-efficient solutions to challenges like marketing and overhead costs. Business Alliance Inc. helps entrepreneurs vet and choose the best franchise opportunities matching their unique goals and needs.
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Can You Make a Living Owning a Moving Company Franchise?
Owning a moving business franchise can be very profitable. The cost for customers to hire professional relocation services can range from hundreds of dollars for an in-town move to tens of thousands for an out-of-state job. Prices are typically calculated based on the weight of household items or how much room it occupies inside a truck. Some moving company franchises also add the number of steps taken from the truck to the house or apartment, the number of stairs, or the square footage of a home.
Franchises help owners overcome many challenges they would face if starting a business from scratch. The cost of fuel and vehicles has risen exponentially in recent years. Insurance costs and employee wages can also be cost-prohibitive to small operations that go it alone. Moving company franchises often feature economies of scale benefits, including financial assistance or reduced prices when purchasing vehicles, equipment, and insurance. Franchises may also provide marketing services to help your company stand out in a competitive market.
Other benefits of purchasing a moving business franchise include:
- Instant Brand Identity: It takes years for new businesses to build a brand name that customers trust. Franchises deliver instant brand recognition and access to a dedicated customer base.
- Support and Guidance: When new companies try to establish themselves and make a profit, there is a lot of trial and error. Buying a moving franchise comes with expert guidance and support from a corporation invested in your success. Franchisors share a proven business model and structure for owners to use in their operations. Head corporations train owners and employees to ensure they perform according to the company’s standards.
How Much Does It Cost To Buy a Moving Company Franchise?
The cost of purchasing a moving franchise varies. When considering your options, consider the initial investment necessary and overhead. Corporations have different operating structures that impact business expenses. Prices for support services, like marketing and training, will also vary between franchisors. The advantages of owning a franchise compared to starting a business from scratch can outweigh many of these costs.
Overhead Expenses
Typical overhead costs of operating a moving services business include:
- Vehicles
- Fuel
- Equipment
- Insurance
- Storage Facilities
- Labor Costs
A truck with a trailer is one of the most significant upfront costs associated with this industry. A moving services franchise could help you with financing trucks. Banks are more likely to offer loans for franchises, as the proven business model and support structure offer better odds for success. Fuel prices can also be significant. Again, it’s possible to find a moving services franchise that provides help with fuel costs through discounts or rebates.
The equipment needed to operate a moving company includes dollies, boxes, packing supplies, and trailers. Some brands also maintain storage facilities. Having a storage facility is beneficial because it allows you to attract more customers and retain more work throughout the year. People don’t always move directly from one home to another. A storage facility will enable you to offload trucks so they can be used for other clients.
Labor costs and insurance represent another significant expense. A business must maintain sufficient insurance to cover employee accidents or potential damage to trucks, facilities, or clients’ possessions. Employee wages are typically based on region. Some moving services franchises leave it up to owners to establish new-hire and experienced-based wages. Business Alliance Inc. will give you all the details about these costs to use in your decision-making process when vetting individual franchise opportunities.
Franchise Fees
Corporations typically require an initial buy-in and ongoing fees to own a franchise. Prices vary depending on several factors, including the brand’s reputation, the size of the territory, the type of business, location, support and training offered, and the potential for profit in the market.
Typical franchise fees owners can expect to pay with a moving company include:
- Initial Buy-In Fee: Entrepreneurs must pay an upfront fee for the right to operate under an established brand. Buy-in fees are higher for well-known brands, though this will ensure better recognition and reach in the market. The initial investment can range from $10,000 to $50,000 or more.
- Royalty Fees: Franchisors require ongoing royalty payments to use their name and receive support services, like technology, equipment, guidance, training, and more. Royalties can be a flat fee or a percentage of revenue calculated weekly, monthly, quarterly, annually, etc.
- Marketing Fees: Corporations sometimes manage marketing and advertising services for franchisees. Because the costs are spread out over several franchises, marketing fees can be lower than handling this task yourself. Prices vary by region and brand and can be a flat fee or a percentage of income.
- Territory Fees: Your moving company franchise operates in a territory with exclusive rights from other companies of the same brand. The franchisor may charge an ongoing fee.
The fees charged by particular moving company franchises vary. The list provided is not exhaustive. We’ll ensure you understand all the associated costs of the franchise opportunities you’re interested in before making a decision.
We Are the Premier Franchise Broker
Business Alliance Inc. knows franchises better than anyone else. Our mission is to give entrepreneurs the information they need to pinpoint the right opportunity for their personal and professional goals. Vetting moving company franchises alone can be time-consuming and result in acquiring outdated or wrong information. Or BAI Franchise Consultants® work closely with you and deliver tailored recommendations based on an in-depth assessment of your personality, aspirations, investment ability, and more. We have one of the largest networks of emerging and established franchise brands to choose from, including all the necessary information about their structure, operations, and costs to help future owners make informed decisions. By working with BAI, find the resources and assistance to make life-changing decisions for the better.
Connect With Moving Franchises
Browsing the internet isn’t enough to find the right moving franchise to buy. Choose confidently by partnering with the premier franchise broker that’s helped match hundreds of companies and motivated entrepreneurs for successful partnerships. We do the vetting for you, delivering tailored recommendations that match your unique needs and business aspirations. Owning a moving franchise can be profitable if you have the right knowledge. Call us today for an assessment and get matched to the best opportunities.