Is a Storage Unit Franchise Worth It? 3 Pros and Cons
One in three Americans uses a self-storage facility, and the industry is projected to reach $67.02 million by the end of the decade. According to Research and Markets, growth in the self-storage industry is propelled by urbanization, population increases, and the e-commerce boom. Homeowners and businesses turn to storage franchises to hold inventory and excess clutter. While it may seem like a good investment, learn why a storage unit franchise might not be as profitable as it looks.
Pros and Cons of Self-Storage Franchise Opportunities
To determine if self-storage is the right market to pursue, let’s take a closer look at the pros and cons of opening a self-storage franchise.
PROS
- Consumer demand: A new survey reveals at least half of Americans have one room in their home that is “unsalvageable” due to clutter. A self-storage franchise offers a handy storage solution for seasonal items and clutter. It can bridge the gap when moving or undergoing home renovation and is an option for oversized vehicles such as RVs or boats. Home-based businesses often take advantage of storage franchises to hold inventory, equipment, documents, or promotional materials.
- Recurring revenue: Many tenants sign long-term rental contracts, providing consistent monthly income.
- Minimal labor requirements: Once construction on the storage facility is complete, it requires minimal employees to run smoothly. Many facilities turn to technology to trim labor costs. Electronic gates and touchpad entry offer 24/7 access to storage units.
CONS
- High initial investment: A storage unit franchise requires a large initial investment. You’ll need significant capital for land, permits, zoning, and construction. Securing a prime location with good visibility can be competitive and expensive.
- Market saturation: There are more than 50,000 self-storage facilities in the U.S. This staggering number is more than the number of Subway restaurants, Dollar General stores, and CVS locations combined, according to Storage Cafe, an online storage space marketplace. Separating yourself from the competition will require a robust, local marketing program.
- Slow return on investment: Tenant capacity will determine when your franchise breaks even. The high initial investment may require low vacancy rates to be profitable.
PremierGarage: A Low-Cost Alternative
If the high initial investment and stiff competition are making you rethink the potential of a storage unit franchise, PremierGarage is a low-cost alternative with high-profit potential. PremierGarage is a garage organization franchise offering innovative, high-quality garage flooring and storage solutions for both homes and businesses. We provide rent-free garage solutions that are easy to access.
Our franchisees can take advantage of:
- Protected territory with a minimum of 100,000 households.
- National and local marketing programs to generate customer leads.
- Home-based franchise model.
- Low inventory.
- One of Home Franchise Concepts’ ten home services franchise brands.
As a PremierGarage franchisee, you’ll be the owner of a recognized brand with the tools, training, and ongoing support you need to be successful. No industry experience is required. We’re searching for entrepreneurial-minded individuals who are goal-oriented with some type of business, leadership, or project management background.
Learn more about the initial investment required to launch a PremierGarage in your community by visiting the franchise investment page on our website.
Ready to Get Started?
If you’re ready to rev up your career as a business owner, invest in a PremierGarage franchise. To learn more about the PremierGarage brand and the power of our parent company, Home Franchise Concepts, inquire now.