Are you itching to start a franchise?
If you are considering an American moving company franchise opportunity, we’ve jotted down five things to check before investing.
When vetting a moving company franchise, our franchise experts say, “Leave no stone unturned.”
As 13-year veterans in the moving industry with franchises in Canada and the USA, we urge any franchise-seeker to do their due diligence before signing a contract and spending a cent.
A man picking up a stone to see what is beneath
To help you get started, we focused on five of the biggest stones and included some questions to ask yourself or others while vetting moving company franchises.
1. Check the Reputation of the Moving Company
By looking into their reputation indicators, ensure you partner with a reputable moving company.
You will have to do some leg work and tap into a few sources, online and in person, but this initial check will reveal the worthwhile business investments. The good ones will have a good web presence, stellar customer reviews, transparent (and promising) financials, and excellent customer service.
Ways to check moving company franchise’s reputation
Here are some ways we suggest to do a deep dive into the company’s reputation:
- Start with the website and assess it from a customer’s perspective and then again from the perspective of a company owner.
- Check customer reviews online.
- Review the franchise’s financial performance. Look into any available financial disclosures, including initial investment costs, ongoing fees, and profitability.
- Hire the company for a small local move.
It’s a good sign if the company passes this first check, but remember that it’s just the first one of five to determine whether a particular moving company franchise is right for you.
2. Your Alignment with the Moving Company
Alignment with the company can play a crucial role in choosing the right moving company franchise to join. This plays a part in a few ways, including alignment with your talents, needs, and values.
Alignment with your skills and strengths
Owning a moving company franchise location is more than just an investment—it’s a real job.
Are you willing to learn new skills and processes?
You don’t need any prior experience in the moving industry to align with the opportunity, but you must be willing to learn. When Let’s Get Moving employees evolve into location owners, they learn much more than they already knew at our one-week boot camp, which every franchisee must attend.
Alignment with your needs and goals
Make sure that owning a moving company franchise aligns with your current lifestyle and your working goals. Some Let’s Get Moving franchisees work a full-time job elsewhere and can balance the two, plus have a life outside of work, but to make that happen, they must be realistic about their needs and goals.
To determine alignment with your needs, ask:
- Can you immediately afford to hire someone to help you achieve stability?
- Do you want a business you can manage remotely?
- How much time can you put into the business?
Alignment with your core values
Finally, ensure the company aligns with your core values. In an industry, you’re passionate about solving problems you relate to personally. It indicates that the opportunity will be a long-term fit.
You’re not starting a moving company franchise just to sell it in a few years. You should jive with the company on a level deeper than return on investment (ROI) or you are at risk of losing momentum quickly. Once the passion for work is lost, it is hard to get back.
3. Your Qualifications
Before proceeding down the moving franchise ownership rabbit hole, check your qualifications to ensure you meet the franchising company’s investment standards including franchise fees, operational costs, and working capital.
Questions to ask about your qualifications as a franchisee
When determining your readiness for a moving company franchise, ask yourself:
- Do I qualify for financing?
- Do I have what it takes to cover the cost of starting a moving company, including franchise fees and working capital?
- Do I have the time to dedicate to franchisee training and launching the business?
- Do I have help from a lawyer if I need one?
Did you pass the qualifications check? Then, it’s time to move on to the franchisee agreement, which lays out all of the franchisor and franchisee’s rules of engagement.
4. Legal Franchise Agreement
Digesting the franchise agreement will help you determine two important things: whether the company is running the business legally (if it isn’t, walk away) and whether you agree with the terms.
Completely agree
To check if the company is operating legally, look at local regulations, including licenses and permits for a moving company, and ensure the company follows the rules.
Next, determine if you can fully commit to the franchisor’s expectations. We always recommend hiring a corporate lawyer to help you fully understand the requirements laid out by the franchise agreement.
Questions to ask while reading the contract
To find out whether this moving company franchise is a good long-term fit, ask:
- Is the agreement clear and thorough?
- How does this franchisor promise to support me?
- What is the franchisor’s involvement, and how much control do they have over operations?
- What are the financing options?
- Does the contract cover how your location territory is protected?
- Do you need the company to clarify or address any of the terms?
Once the company has passed this important check, it’s time to tap into some of the most interesting sources of information: real, live franchise owners.
5. Consult with Other Franchisees
At Let’s Get Moving, we host new franchisees at our headquarters in Lauderhill for a week of training. So if you are looking to own a franchisee, you can view all our teams, from social media to sales, and meet other local moving company franchise owners there. Some of them are employees right here at the office.
Not every moving company with franchises can offer that same experience. Still, you should always get the chance to ask questions to the current franchisees about the day-to-day operations and challenges of running a moving franchise with the company.
Be prepared to hear some answers that may change your mind about the company and its franchise offering, and be ready to move on from unfitting opportunities.
Questions to ask other franchisees
Here are some moving company franchisee questions you can ask:
- How much does it cost to operate your location?
- What is the average turnover at your location?
- What do you do to increase profits?
- How can I generate more leads for my local franchise?
- What sort of support do you receive?
- What are common complaints you receive?
- What do you wish you or the company would have done differently during your onboarding and training
If the company in question still measures up to your standards and you meet their qualifications, it’s time to proceed toward moving company franchise ownership. It’s never been a better time to make money with a moving company.
Conclusion: Make the effort and use your resources
Embarking on a local moving franchise journey requires thorough research and careful consideration of various factors. Therefore, make every possible effort and use every possible source to gain information and make this informed decision.
Ensuring that the moving company franchise has a strong reputation, aligns with your capabilities and aspirations, meets your financial qualifications, operates legally, and offers support through consultation with existing franchisees is essential in vetting.
By leaving no stone unturned and utilizing all available resources and information, prospective franchisees can increase their chances of success and find a franchise opportunity that aligns with their goals and values in the moving industry.
