
Franchise Investment Overview
The following information offers a general understanding of the estimated financial commitment required for a Big
Box Storage franchise; what it does not provide is insight into the time and energy commitment expected of each
franchisee. Please note that the company expects each of its franchisees to devote themselves, on a full-time
basis, to the business. If you do not believe that you are able to commit such financial and time resources, we
urge you to reconsider your interest in Big Box Storage Franchising.
INITIAL FRANCHISE FEE
Each franchisee is required to pay an initial franchise fee at the time of the franchise agreement signing. Such
fee ranges from $45,000 to $70,000 and is based upon the estimated population of the franchisee's proposed
protected territory as noted below:
| Population |
Franchise Fee |
| Up to 1,000,000 |
$45,000 |
| 1,000,001 to 1,250,000 |
$50,000 |
| 1,250,001 to 1,500,000 |
$55,000 |
| 1,500,001 to 1,750,000 |
$60,000 |
| 1,750,001 to 2,000,000 |
$65,000 |
| 2,000,001 to 2,250,000 |
$70,000 |
The initial franchise fee, in accordance with the franchise agreement, includes:
- Twenty year franchise term, renewable in ten year increments
- License to use the Big Box Storage brand name and registered trademark
- Exclusive rights to your protected territory
- Assistance in locating a facility for your business
- Access to the company's proprietary portable storage software systems
- Access to the company's proprietary intranet communications center
- Ten day initial training program (company facility and on-site) and ongoing support
OTHER ONGOING FEES
| Name of Fee |
Amount |
Due Date |
Remarks |
| Royalty Fee |
6% of monthly Adjusted Gross Sales, subject to a minimum monthly fee of $2,500. The monthly minimum is waived for the first eight months of operation. |
Within five days of the end of the calendar month for which the Adjusted Gross Sales are being calculated. |
The monthly royalty minimum ($2,500) is waived for the first eight months of operation. |
| Support Center Fee |
3% of monthly Adjusted Gross Sales, subject to a minimum monthly fee of $1,000. The monthly minimum will be waived for the first eight months of operation. |
Within five days of the end of the calendar month for which the Adjusted Gross Sales are being calculated. |
Support Center handles incoming calls, emails and online chat sessions from prospective and existing customers. The monthly Support Center Fee minimum ($1,000) shall be waived for the first eight months of operation. |
The above, Ongoing Fees, in accordance with the franchise agreement, include:
- Wide array of advertising and marketing materials
- Online corporate presence at www.bigbox.com and associated email addresses
- Management Information support including proprietary operations manual
- Creation of multiple portal websites for lead generation on the Internet
- Periodic software upgrades
- Knowledge transfer within the franchise network
- National support center to handle all customer inquiries, as well as providing billing and collection services
- National sales center staff to establish accounts with new customers via toll-free phone, email, and live chat
- Ability to offer inter-franchisee "big box" shipping between franchisees to accommodate customer long-distance moves
- Volume discounts on equipment purchases
Please refer to the company's UFOC for additional information and corresponding notes. Please also note that the
UFOC contains additional fees for services provided, including, but not limited to, a billing service fee and a
transfer fee and an advertising co-op fee (if such co-op is established).
INITIAL INVESTMENT - 90-day period prior to opening
| Investment |
Amount/Range Estimated |
Method of Payment |
When Payable |
Whether Refundable |
To Whom Payment is Made |
| Initial Franchise Fee |
$45,000 to $70,000 |
Lump Sum |
Upon signing of the Franchise Agreement |
No |
Us |
| Real Estate Leases and Deposits (1) |
$12,000 to $22,000 |
As incurred |
As agreed under the terms of the negotiated lease |
No, except for security deposits (provided applicable terms are met) |
Landlord |
| Leasehold Improvement (2) |
$2,500 |
As incurred |
As agreed |
No |
Suppliers |
| Warehouse Equipment / Signage (3) |
$1,400 to $3,100 |
As incurred |
As agreed |
No |
Suppliers |
| Office Equipment, Phones |
$1,000 to $2,300 |
As incurred |
As agreed |
No |
Suppliers |
| Trucks and Forklifts (4) |
$11,400 to $18,200 |
Upon signing of equipment lease or purchase agreements |
As agreed |
No |
Approved Outside Suppliers |
| Utilities, Licenses and Other Pre-paid Expenses |
$1,000 to $4,500 |
As incurred |
As agreed |
No |
Suppliers |
| Initial Inventory of Packing Supplies |
$1,200 to $2,200 |
As incurred |
As agreed |
No |
Us or Approved Outside Suppliers |
| Sixty Containers (5) |
$20,100 |
Net 30 (from date of delivery), based on approval from Us or Approved Supplier |
If via Approved Supplier, as agreed. If via Us, payment due upon delivery. |
No |
Us or Approved Suppliers |
| Thirty Container Covers |
$11,850 |
50% upon order and 50% upon delivery |
As agreed |
No |
Us or Approved Suppliers |
| Personnel and Staffing |
$2,500 to $7,500 |
As incurred |
As agreed |
No |
Employees and/or Contractors |
| Grand Opening Advertising (6) |
$25,000 |
As incurred |
As agreed |
No |
Advertising Agency or Media |
| Insurance (7) |
$2,780 to $4,170 |
As incurred |
As agreed |
No |
Insurance agents/company |
| Legal and Professional |
$2,750 to $4,500 |
As incurred |
As agreed |
No |
Outside Professional Parties |
| Additional Funds - three Months (8) |
$14,000 to $27,600 |
As incurred |
As agreed |
No |
Varies |
| Total (initial 90 day period) $154,480 to $225,520 |
INITIAL INVESTMENT - 21 Month Start-up Period (period following the above 90 day period)
| Investment |
Amount - Range Estimated |
Method of Payment |
When Payable |
Whether Refundable |
To Whom Payment is Made |
| Real Estate/Rent |
$126,500 to $252,000 |
As noted in Lease Agreements |
As noted in Lease Agreements |
No |
Landlord |
| Containers (5) |
$67,000 to $569,500 |
As incurred |
If via Approved Supplier, as agreed. If via Us, payment due on delivery. |
No |
Us or Approved Suppliers |
| Processing Fees |
$4,200 to $15,120 |
As in Fran. Agreement and by your financial institution |
As in Fran. Agreement and by your financial institution |
No |
Us or financial institutions |
| Monthly Advertising & Marketing (9) |
$73,500 to $525,000 |
As incurred |
As incurred |
No |
Suppliers |
| Fuel (10) |
$31,500 to $58,000 |
As incurred |
As incurred |
No |
Suppliers |
| Phones and Internet |
$4,200 to $12,600 |
As incurred |
As incurred |
No |
Suppliers |
| Insurance (7) |
$24,350 to $31,800 |
As arranged |
As arranged |
No |
Suppliers |
| Trucks and Forklifts (4) |
$69,300 to $81,700 |
As specified in financing agreement |
As specified in financing agreement |
No |
Approved Suppliers |
| Personnel and staffing |
$87,500 to $183,750 |
As incurred |
As incurred |
No |
Employees |
| Legal and Professional |
$4,200 to $8,400 |
As arranged |
As arranged |
No |
Suppliers |
| Container Covers (5) |
$3,950 to $11,850 |
As specified in Franchise Agreement |
As specified in Franchise Agreement |
No |
Us or Approved Suppliers |
| Packing Supplies |
$9,600 to $32,000 |
As arranged |
As arranged |
No |
Us or Approved Suppliers |
| Additional Funds - 21 months (11) |
$31,500 to $73,500 |
As incurred |
As incurred |
No |
Suppliers |
| Total (21 month period) $536,800 to $1,855,220 |
Please note that the above totals do not provide for any incoming revenues, which will offset an undeterminable
amount of the above expenses. Nor do they include the monthly royalty fee, support center fee and billing service
fee as they are directly dependent upon incoming revenues. The complete estimated total for the above two periods,
which collectively represent the initial twenty-four (24) month period of operation, ranges from $691,280 to
$2,080,740. Please refer to the company's UFOC for further details on estimated expenses. You should review these
figures carefully with a business advisor before making any decision to purchase the franchise. Please caution
that these figures are estimates only. We cannot guarantee that you will not have additional expenses in starting
and operating your franchise.
|