Posted by on September 16, 2020 8:09 am
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FDD Talk 2020: Two Men and a Truck Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

FDD Talk 2020: Two Men and a Truck Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

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In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Two Men and a Truck franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Two Men and a Truck franchise, based on Item 7 of the company’s 2020 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Two Men and a Truck franchise, based on Items 5 and 6 of the company’s 2020 FDD
  • Section IV – Number of franchised and company-owned Two Men and a Truck outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
  • Section V – Presentation and analysis of Two Men and a Truck’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
  • average and median annual gross sales for the years 2015 through 2019 for all standard franchise operating units operating for a full 12 months as of December 31st of each of those years
  • average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for experienced standard franchise operating units (i.e. those that were in operation as of December 31, 2019 and, at that time, had been in operation for at least five years)
  • average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for each of the first four years of operation of new standard franchise operating units (i.e. those that completed their first 12 months of operation during the years 2015 through 2019 and that were in operation as of December 31, 2019)
  • average and median annual gross sales; direct labor – mover wage expenses; moving truck expenses; other moving expenses – damages, supplies, other direct costs; advertising expenses; facility expenses; franchise fees; support staff expenses; other administrative expenses; and total annual expenses for each of the first two years of operation of new mini-market franchise operating units (i.e. those that completed their first 12 months of operation during the years 2015 through 2019 and that were in operation as of December 31, 2019)

Section I – Background Information

23 Things You Need to Know About the Two Men and a Truck Franchise

Closes Out Q3 2019 by Giving Back to Employees with Annual Scholarship

1.  At the beginning of December 2019, Two Men and a Truck continued its streak of revenue growth, closing out the third quarter with 4.62% growth. The company has seen consistent revenue and franchise growth since 2009.

2.  To continue growing the franchise system with dedicated employees from within, 2019 was the fifth year that Two Men and a Truck has awarded its Mary Ellen’s Moving People Forward Scholarship, awarding Quad Cities resident Juan Gallegos with a $50,000 check to open his own franchise in Texas.

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3.  For the second year in a row, the company gave runner-up prizes to three hardworking, dedicated employees who also spent countless hours throughout the year to complete the program.

4.  During the third quarter, the 2018 Mary Ellen’s Moving People Forward Scholarship winner Liz Friedmann opened her first location in Clifton, New Jersey. Two Men and a Truck is looking to open 11 more locations across the Garden State and is interested in speaking to franchise prospects that would like to open in Sicklerville, Vineland, Camden, Jersey City, Hackensack, Asbury Park, Paterson, Union, Plainfield, Morristown, or Wayne, New Jersey.

5.  Randy Shacka, president of Two Men and a Truck, said, “We couldn’t be more proud of our scholarship winners, and are honored to reward them for their efforts, offering a stepping stone to a new phase of their career growth. The Moving People Forward Scholarship winners are some of the most talented, hardworking and deserving people we have ever had the pleasure of working with. Providing our employees with professional development opportunities has proven to be excellent for both company culture and brand expansion.”

6.  In addition to growing its franchise presence in the third quarter, Two Men and a Truck also rolled out a new junk removal service based on feedback from customers and its franchisees. The Ann Arbor, Michigan franchise was the first to pilot the service within the system, with the St. Louis and Columbus locations following suit. The company plans to officially roll out the service in 2020 if the service tests well.

7.  Jon Nobis, CEO of Two Men and a Truck, said, “One of the many benefits of being a franchise system is having the ability to tap into our amazing family of franchisees to better understand what the consumer demand is and if there are services that align with our core that we might be able to offer. Offering junk removal is just the next evolution of our company’s moving and storage services, providing franchisees with a new revenue stream and opportunity to diversify services.”

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Partners with Cheeriodicals to Deliver Duffel Bags to Veteran Facilities

8.  In early November 2019, Two Men and a Truck and Cheeriodicals, a national corporate team-building and corporate gifting company, partnered to assemble and deliver duffel bags to Veteran facilities in four U.S. cities throughout the month of November. Veterans receiving care at Department of Veterans Affairs (VA) medical centers and state Veteran homes in Orlando, Florida; Ann Arbor, Michigan; Portland, Maine; and Fayetteville, North Carolina received the duffel bags filled with items intended to brighten their days a little bit more.

9.  Sabrina Clark, director of VA’s Voluntary Services Program, said, “Partnerships like this help VA support Veterans, families and caregivers. VA is proud to partner with organizations that facilitate building relationships that are valuable and critical to meeting our mission.”

10.  While Two Men and a Truck and Cheeriodicals have worked together for the past eight years to deliver Cheeriodicals’ signature big, green boxes of care to VA hospitals, children’s hospitals, and more, this will be the first year the pair assembles and delivers duffel bags.

11.  The black and green duffel bags will contain items that have typically gone into Veteran boxes, including a blue fleece blanket and a tumbler adorned with the message, “Thank you for your service.” The duffel bags also contained toiletries such as deodorant, toothbrushes, toothpaste, socks, and crossword puzzle books. Each duffel bag also had a luggage tag featuring the Two Men and a Truck and Cheeriodicals logos.

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12.  Randy Shacka, president of Two Men and a Truck, said, “At Two Men and a Truck, we pride ourselves on partnering with Veteran organizations to provide care to the brave men and women who have served our country. From our joint efforts with Cheeriodicals to our Movers for Military program, our brand prioritizes showing appreciation to all those Veterans who fight for our freedoms. We’re thrilled to partner again with Cheeriodicals this year and deliver duffel bags to Veteran facilities. Our franchisees enthusiastically support this mission and we’re happy to see this campaign catch on locally.”

13.  The Two Men and a Truck Fayetteville team and Cheeriodicals assembled 70 duffel bags and delivered them to the Fayetteville VA Medical Center on November 6. The Two Men and a Truck Portland location and Cheeriodicals delivered 50 duffel bags to the Maine Veterans’ Homes Scarborough location on November 12.

14.  In Michigan, Two Men and a Truck employees assembled 300 bags at its Frontline Annual Meeting for movers, drivers, customer service representatives, and franchise managers from across the system. Then, Cheeriodicals and Two Men and a Truck delivered bags to the Ann Arbor VA Medical Center on November 15. The Two Men and a Truck Orlando locations and Cheeriodicals assembled 100 duffel bags and delivered them to the Orlando VA Medical Center on November 20.

15.  Gary Parisher, president of Cheeriodicals, added, “Cheeriodicals values Two Men and a Truck as a national partner. Cheeriodicals is endlessly grateful to Veterans and these duffel bags are a small token of our appreciation. We all look forward to delivering bags in person at local VA facilities around the country.”

16.  Two Men and a Truck’s relationship with Cheeriodicals began eight years ago when Cheeriodicals CEO Gary Parisher was looking for a way to deliver “big green boxes of cheer” to a hospital in Columbus, Ohio. While driving in Birmingham, Alabama, he saw a Two Men and a Truck moving truck driving by with its motto plastered on the side: “Movers Who Care.” He called the number and expressed his predicament. To his surprise, Two Men and a Truck told him they would deliver the boxes free of charge.

17.  Eight years later, Two Men and a Truck and Cheeriodicals have partnered across the U.S. and Canada to make more than 300 deliveries and donate more than 90,000 boxes to VA medical centers, state Veteran homes, children’s hospitals, Ronald McDonald Houses, and other charities.

Company History

18.  Two Men and a Truck was founded in 1985 by Mary Ellen Sheets in Lansing, Michigan. A few years earlier, Sheets’ sons Brig and Jon Sorber had used an old pickup truck to perform moving services to earn some extra money. When the Sorbers went off to college, calls continued to come in for their moving services and Sheets decided to continue their business.

19.  Sheets is also responsible for drawing the Two Men and a Truck logo that the Sorbers had used to advertise their business in the local papers – the logo is still used by the company today.

20.  Sheets’ experience with data analysis, combined with her commitment to customer service, earned her a spot on a 1988 graduate business school panel at Michigan State University. A fellow panelist suggested that Sheets should turn her moving business into a franchise and after doing some research and consulting with an attorney, Sheets started franchising Two Men and a Truck in 1989.

21.  The first franchise was awarded to Sheets’ daughter, Melanie Bergeron, in Atlanta, Georgia. Over the next few years, Two Men and a Truck continued to grow and Sheets asked Bergeron to assume the role of company president while she pursued a seat in the Michigan State Senate.

22.  In the mid-1990s, Brig and Jon Sorber returned to the company to help Sheets and Bergeron. The Sorbers have held various executive roles within the company. Today, Two Men and a Truck has locations across 43 states, as well as Canada, the United Kingdom, and Ireland.

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23.  Two Men and a Truck ranked No. 175 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Two Men and a Truck franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Two Men and a Truck’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

  • Outlets at the Start of the Year:  263
  • Outlets at the End of the Year:  267
  • Net Change:  +4

2018

  • Outlets at the Start of the Year:  267
  • Outlets at the End of the Year:  267
  • Net Change:  0

2019

  • Outlets at the Start of the Year:  267
  • Outlets at the End of the Year:  273
  • Net Change:  +6

Company-Owned

2017

  • Outlets at the Start of the Year:  2
  • Outlets at the End of the Year:  2
  • Net Change:  0

2018

  • Outlets at the Start of the Year:  2
  • Outlets at the End of the Year:  3
  • Net Change:  +1

2019

  • Outlets at the Start of the Year:  3
  • Outlets at the End of the Year:  3
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

  • The financial performance information provided in this Item 19 is a historical financial performance representation about all of the franchisees existing in the franchise system for the relevant period based upon financial information those franchisees reported to Two Men and a Truck.

Part 1 – Average and Median Annual Gross Sales for All Franchise Operating Units Open as of December 31

  • The chart below reflects the average and median annual gross sales for the years 2015 through 2019 for all standard franchise operating units operating for a full 12 months as of December 31st of each of those years. The number of franchise operating units in the group for each of those years is noted in the chart.
  • A franchise operating unit is one or more franchises under common ownership that work as a single business unit in the same general geographic region and share personnel and trucks. Two Men and a Truck believes franchise operating units are the best measurement of the total business and represent how franchises actually operate.

2015

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Published at Wed, 16 Sep 2020 04:37:09 +0000

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