Two Men and a Truck Franchise in 2024: Costs, Fee & FDD
Two Men and a Truck is one of the most recognizable names in the moving and storage industry, founded by brothers Jon and Brig Sorber in 1985. It started humbly with the two brothers using an old pickup truck to offer local moving services in Lansing, Michigan. Today, it’s grown into a significant player in […]
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Two Men and a Truck is one of the most recognizable names in the moving and storage industry, founded by brothers Jon and Brig Sorber in 1985. It started humbly with the two brothers using an old pickup truck to offer local moving services in Lansing, Michigan. Today, it’s grown into a significant player in the franchise world, known for its reliable service and commitment to customer satisfaction. The franchise focuses on residential and business moves, making it a strong contender in a competitive industry.
At its core, Two Men and a Truck offers moving services that cover local and long-distance moves, packing, unpacking, and storage solutions. The franchise has expanded to include junk removal and specialty moves for large or fragile items. Their core customer base is primarily homeowners, renters, and small businesses looking for professional, hassle-free moving services. The additional junk removal services also attract people seeking a one-stop solution for both moving and decluttering.
The franchise has grown impressively over the years. With over 350 locations spread across 46 U.S. states and several countries internationally, Two Men and a Truck moves hundreds of thousands of customers each year. Their daily operations include thousands of moves, and the brand continues to expand globally, which speaks to their operational efficiency and customer demand. The company’s growth trajectory shows no signs of slowing, making it a prime choice for franchisees interested in scaling.
One of the key reasons for their success is the comprehensive support system offered to franchisees. Two Men and a Truck provides extensive training that covers everything from marketing to operational logistics, ensuring that new owners are well-prepared. Additionally, franchisees receive ongoing support through regional coaches, an annual convention, and an award-winning marketing team that drives lead generation. This strong support system sets franchisees up for long-term success while maintaining the brand’s high customer service standards.
Two Men and a Truck Franchise Insights
Two Men and a Truck has a strong presence in the U.S. with 316 total locations, of which 313 are franchised units and only 3 are corporate-owned, emphasizing the franchise-driven growth model.
- The franchise has been in business since 1989, with over 35 years of operational experience, making it a seasoned and established player in the moving industry.
- Two Men and a Truck boasts a 96% customer referral rate, highlighting the brand’s strong reputation for customer satisfaction.
- Royalty fees are set at 6% of revenue, with an additional 1% marketing fee, ensuring franchisees benefit from national brand recognition and marketing support.
- The franchise has completed over 9 million moves since its inception, offering a solid track record of experience in the moving industry.
Two Men and a Truck Franchise Key indicators
Growth YOY (%)
7%
vs industry 3%
Total U.S. Franchised Units
313
3-Year Failure Rate
3%
vs industry 5%
Sales-to-Investment ratio
7.2:1
How much does it cost to open a Two Men and a Truck franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Two Men and a Truck franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Two Men and a Truck franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Two Men and a Truck below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $50,000 | $165,000 |
| Lease Security Deposit | $2,400 | $24,000 |
| Leasehold Improvements | $3,000 | $4,000 |
| Miscellaneous Start-up Expenses | $8,000 | $25,000 |
| Insurance and Risk Management | $25,000 | $43,000 |
| Licensing Requirements | $500 | $20,000 |
| Legal and Accounting Fees | $2,500 | $7,500 |
| Trucks | $3,200 | $49,500 |
| Office/Mobile Technology Costs | $16,000 | $24,000 |
| Initial Marketing Expenses | $20,000 | $40,000 |
| Storage Service Expenses | $0 | $30,000 |
| Pre-Opening Training Costs | $2,500 | $6,000 |
| Additional Funds – 3 Months | $32,600 | $100,700 |
| Total Estimated Initial Investment | $165,700 | $538,700 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Two Men and a Truck franchise, the required capital involves both the initial investment costs and a net worth requirement set by Two Men and a Truck. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $165,700 to $538,700. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid capital Typically, for a franchise like this, you’ll need to have at least $43,000 in liquid assets. This is the minimum cash requirement, as noted in the data you provided.
- Net worth While the specific requirement isn’t listed, franchises with similar investment ranges usually ask for a minimum net worth of around $300,000 to $500,000. This would ensure you have the financial cushion to manage initial operations and unforeseen expenses. This figure is an estimate based on industry standards for franchises within this investment range.
How much does a Two Men and a Truck franchise owner make?
Calculating the salary of a Two Men and a Truck franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Two Men and a Truck franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Two Men and a Truck Revenue & Gross Sales
Based on most recent analysis, Two Men and a Truck franchises have a median gross sales of $2,314,231. This financial performance underscores the brand’s robust consumer demand and potential for significant revenue generation.
Which key factors impact the average revenue performance of Two Men and a Truck franchisees?
Several factors likely contributed to the performance of U.S. franchisee median gross sales for Two Men and a Truck in recent years. First, the continued demand for moving services—especially with people relocating due to remote work trends—likely boosted revenue. Additionally, economic conditions such as rising home sales and higher housing market activity tend to drive moving demand, positively impacting the franchise’s sales. On the operational side, improvements in logistics, streamlined services, and expanded offerings like junk removal could have attracted more customers. Finally, increased brand awareness, fueled by effective marketing efforts, likely played a role in driving sales growth compared to the previous year.
Two Men and a Truck Franchise Operational Costs
When opening a Two Men and a Truck franchise, some of the key primary ongoing operational costs you’ll need to consider include:
- Labor costs Employee wages, benefits, and training expenses are significant, as your business relies heavily on movers, drivers, and office staff to deliver quality service.
- Vehicle maintenance and fuel Given that this is a moving service, you’ll need to budget for regular maintenance, repairs, and fuel for your fleet of trucks, which can be a substantial cost depending on the number of vehicles and distance traveled.
- Insurance You’ll need comprehensive coverage, including liability insurance, vehicle insurance, and worker’s compensation to protect your business and employees.
- Warehouse or office space If you’re renting or owning storage or office space, monthly lease or mortgage payments, along with utilities, will be part of your ongoing costs.
- Technology and software Franchisees typically invest in scheduling, dispatch, and customer management systems, which require regular updates and potential subscription fees.
These are just a few of the core operational costs, but they’ll give you a sense of the day-to-day financial requirements beyond standard franchise fees.
Two Men and a Truck Franchise Fees
Based on the data you’ve provided, here are the relevant ongoing fees you should be aware of when operating a Two Men and a Truck franchise:
- Royalty Fee 6% of all gross sales, paid monthly on the 15th, which covers the ongoing support and rights to use the franchise’s brand and systems.
- Contributions to the Advertising Fund 1% of gross sales, also paid monthly on the 15th, to contribute to the national and regional marketing efforts that help drive business to your location.
There might be additional fees for services or changes related to the products and support offered by the franchisor, so it’s important to stay updated on the fee structure.
These fees represent essential costs that contribute to maintaining the operational and marketing support you’ll receive as a franchisee. Always consult the franchise disclosure document (FDD) for the most accurate and current fee details.
Two Men and a Truck Franchise Earnings
Based on the most recent data, the median gross sales for a Two Men and a Truck franchise are approximately $2,314,231. For an owner-operator, the earnings are estimated to be $417,000 based on industry operating profit margins, reflecting the potential profitability of the franchise model. This indicates that franchisees operating their locations can expect strong returns, especially if they effectively manage their operations and keep costs in line.
While these earnings provide a good benchmark, it’s essential to remember that actual earnings can vary depending on factors like market size, operational efficiency, and local demand. These figures are valuable as a starting point to assess the franchise’s potential, but a deeper dive into individual financials and specific franchise performance would provide clearer expectations for your investment.
How to Open a Two Men and a Truck Franchise
The process to become a Two Men and a Truck franchisee follows a structured path from initial inquiry to starting operations. Here’s an overview of the key steps involved:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After initial contact, you’ll be asked to complete a detailed franchise application. This includes financial disclosures to ensure you meet the minimum financial requirements, such as liquid capital and net worth.
- Discovery Day You’ll be invited to attend a Discovery Day at the Two Men and a Truck headquarters. This is an opportunity to meet the corporate team, learn more about the brand, and ask questions in person. It’s also a chance for the franchisor to assess if you’re a good fit for the franchise.
- Franchise Agreement Signing If both parties are satisfied, you’ll sign the franchise agreement. This legal document officially grants you the rights to open and operate a Two Men and a Truck franchise.
- Financing & Location Setup At this stage, you’ll finalize financing (if needed) and work on securing a location for your franchise. You’ll also begin purchasing equipment and setting up your office and operations.
- Training Program Two Men and a Truck offers comprehensive training, including operational processes, customer service, marketing, and logistics. This ensures that you are fully prepared to manage the business successfully.
- Pre-Opening Support The franchisor will provide support with local marketing, setting up your technology systems, and hiring your initial team. This period ensures everything is in place before opening day.
- Grand Opening & Operations Start Once everything is ready, you can open your doors and start operations. The franchisor will continue to provide ongoing support to help you grow and scale your business.
Pros & Cons
Pros
Established Brand: Two Men and a Truck has over 35 years of experience and strong brand recognition in the moving industry, providing a solid foundation for new franchisees.
Diverse Revenue Streams: Beyond moving services, the franchise offers ancillary services such as junk removal and storage, allowing franchisees to tap into multiple income sources.
Strong Customer Satisfaction: With a 96% customer referral rate, the franchise benefits from strong word-of-mouth marketing and repeat business.
Scalability: The model is highly scalable, allowing for growth through additional trucks, employees, and service areas.
Cons
Labor-Intensive Business: The moving industry requires a strong, reliable workforce, which can be challenging to manage and retain, especially in high-demand seasons.
Geographical Competition: Depending on your chosen location, competition from other moving companies or even other franchisees could impact market share.
Seasonal Demand: Moving services often experience peak seasons in the summer, leading to fluctuations in revenue during off-peak months, which requires careful financial management.
