If you’re looking to start a self storage business, there are two main options: develop your facility from scratch or invest in a franchise. Let’s take a look at the numbers:
The global franchise market in the U.S. is expected to expand by $1.63 trillion by 2027, growing at 9.58% annually.
The number of U.S. franchise establishments is projected to increase to 821,000 units, and added nearly 221,000 new jobs.
In the UK, 89% of franchise units report an average turnover of £400,000.
As you can see, the franchise business model is fast-growing, and for a good reason. Investing in a franchise means you’ll already have brand awareness, a solid reputation, and a proven business model.
However, investing in a franchise may give you less control over your business and limited flexibility, and it can cost more than starting your own facility.
It’s essential to understand both the advantages and disadvantages of investing in a franchise before you commit, which is why we’ve written this guide.
In this article, we’ll explain the pros and cons of investing in a self storage franchise so you can make an informed decision.
What Is a Self Storage Franchise?
Source: Freepik
A self storage franchise is a business model where you (known as the franchisee) purchase the right to operate a self storage facility under the brand and systems of an established company (the franchisor).
In this arrangement, the franchisee pays a fee for the right to use the franchisor’s brand, operational systems, marketing support, and other business resources.
The franchisee operates a self storage facility but with the backing and guidance of the franchisor, who has already established a successful business model.
Self storage franchises operate under a licensing agreement that allows the franchisee to offer storage facilities—typically as individual storage units.
As part of the franchise agreement, the franchisee is required to follow the franchisor’s operational standards, branding, and guidelines.
Franchisees usually receive comprehensive training on the specific operations of the self storage business, including:
➡️ Managing customers.
➡️ Handling payments.
➡️ Maintaining the facility.
➡️ Implementing marketing strategies.
In exchange for the franchisee’s investment, the franchisor provides ongoing support and resources, such as technology systems and even supply chain access.
Types of Self Storage Franchises
Source: Freepik
Now that you know what self storage franchises are, let’s unpack the different types:
👉 Self storage facility franchises
Self storage facility franchises are the most common type of franchise business, and they involve operating physical facilities with various sizes of units for rent.
Franchisees in this category are responsible for managing the facility's day-to-day operations, including unit rentals, maintenance, security, and customer service. They must also ensure the facility meets all the local zoning and safety requirements.
These facilities are typically located in areas with high demand for storage, such as residential neighborhoods, near colleges, or in commercial districts.
The benefits of this type of franchise include steady, long-term revenue from a consistent customer base.
👉 Portable or mobile storage franchises
Portable or mobile storage franchises are a more flexible approach to the self storage industry.
These franchises provide customers with portable storage containers that can be delivered to their location.
Customers can then fill the container with their belongings and keep it on-site for easy access or store it at the franchise’s facility.
This model appeals to customers needing storage for temporary or short-term scenarios, such as during a move or renovation.
For franchisees, portable storage franchises offer lower overhead costs than traditional self storage since there is no need for a physical building with numerous units.
👉 Full-service storage franchises
A full-service franchise offers an enhanced version of the traditional model by providing customers with a broader range of services.
In addition to renting out storage units, these franchises may offer value-added services such as packing, moving, and transportation.
Some full-service storage franchises even provide businesses with climate-controlled units, inventory management, and document storage, further expanding their customer base.
Full-service storage franchises require more investment in terms of infrastructure, staffing, and operation. However, operators can charge more and attract a broader range of customers due to the convenience and additional services offered.
The Pros and Cons of Self Storage Franchises
Source: Freepik
When considering purchasing a self storage franchise, it's essential to weigh the pros and cons carefully.
Several factors can influence whether franchising is the right choice for someone interested in entering the self storage business.
👍 Pros
Let’s take a closer look at some of the advantages involved with franchising:
✅ You already have brand awareness
One of the most significant advantages of purchasing a self storage franchise is the benefit of an established brand.
Franchises typically come with an already recognized name in the market, making attracting customers much easier than starting a business from scratch.
People are often more willing to trust well-known brands, leading to higher foot traffic and faster growth for your new business.
✅ It’s a proven business model
As a franchisee, you gain access to systems, processes, and strategies that have been refined over time to be successful.
These systems might include marketing strategies, operational guidelines, and customer service procedures, which can streamline the management of your business and reduce the risk of failure compared to starting your own business.
✅ Valuable mentorship, training, and ongoing support
As mentioned above, franchise systems typically provide extensive training to their franchisees.
This ensures that you will be well-equipped to manage your business effectively, even if you don’t have previous experience in the self storage industry just yet.
Additionally, ongoing support is often provided, such as assistance with marketing campaigns, operational challenges, or any legal or compliance issues that arise.
✅ Marketing and advertising resources
Franchisors usually handle national or regional marketing, which can be another huge advantage for you.
As a franchisee, you benefit from professional marketing and advertising efforts to attract customers to your self storage facility.
This could include digital marketing campaigns, print advertising, and other media strategies that would be costly and time-consuming for you to manage on your own.
✅ Easier access to financing
Financing for a self storage franchise can be easier to secure than an independent business.
Lenders often view franchises as less risky because of their established business models and brand strength. This may make it easier for you to obtain loans or secure financial backing to get started.
👎 Cons
Now, let’s take a closer look at the disadvantages of buying into a storage franchise:
❌ A significant initial investment
One of the most significant drawbacks of investing in a franchise is the initial cost and ongoing royalty fees.
Franchisees are required to pay an upfront franchise fee, which can be substantial, depending on the brand.
Additionally, many franchises require royalty payments based on a percentage of your revenue, which can reduce your profitability in the long term.
These financial obligations might be a burden if you’re looking for a lower-cost entry into the self storage industry.
❌ Less control and limited flexibility
Franchisees are required to follow the franchisor’s guidelines, which may limit flexibility in how you can run your business.
From operational procedures to marketing strategies, you must follow the standards set by the franchisor.
This may be frustrating for operators who want to implement their own ideas within their business.
❌ Ongoing fees and restrictions
In addition to the initial franchise fee, there are often ongoing costs such as marketing or operational fees and other expenses. These fees can add up over time and impact your profitability.
There may also be restrictions on where you can operate your franchise or who you can hire.
This is because some franchisors have strict rules on using certain vendors and suppliers, which could limit your ability to negotiate better prices or start your own partnerships.
❌ You depend on the franchisor’s performance
As a franchisee, your business is linked to the franchisor’s overall performance. If their reputation takes a hit, it could negatively affect your own self storage business.
For example, if the brand suffers from a public relations issue, attracting customers might be more challenging, even if your facility is well-managed.
Additionally, if the franchisor makes poor strategic decisions, such as ineffective marketing or expansions, it could impact the success of your business.
❌ You’ll earn less if you sell
Selling a franchise can potentially yield less than operating it for the long term. The amount you can earn from selling a storage franchise depends on the business’s profitability, location, brand strength, and market conditions.
❌ Competition among other franchises
In some cases, the franchisor may open multiple locations in the same region, creating internal competition.
This can reduce the potential customer base for your facility, especially if the area is already saturated with self storage options.
How to Choose the Right Self Storage Franchise
Source: Freepik
Choosing the right self storage franchise is a critical decision that can impact the long-term success of your business.
There are several key factors to consider to ensure that you select a franchise that aligns with your goals, financial situation, and operational preferences. Here are seven factors to consider:
1. Evaluate fees and initial investment requirements
The first step in choosing the right franchise is to carefully evaluate the franchise fees and initial investment required.
Each franchise will have different cost structures, including the franchise fee, real estate, equipment, and inventory costs.
Ensure you understand the full financial commitment involved and assess the overall financial requirements. This will help you determine if the franchise is viable based on your budget or available financing.
2. Consider the franchisor’s reputation
A franchise’s reputation is one of the most important factors to consider when making your decision.
Gather information on the franchisor’s track record in the industry, looking at factors such as customer satisfaction, financial stability, and the success of their other franchisees.
Find franchises with a solid reputation in the self storage industry and a history of strong performance in various markets.
3. Assess the level of support and training provided
As mentioned earlier, one of the significant benefits of franchising is the support and training the franchisor offers. When selecting a franchise, assess the level of support they provide, including:
➡️ Initial training.
➡️ Ongoing education.
➡️ Marketing assistance.
➡️ Operational guidance.
Analyze growth potential
Another important consideration is the growth potential of the franchise. Assess the scalability of the franchise model and whether it allows for expansion into new locations or the ability to add more units as your business grows.
A franchise with strong growth potential may provide more long-term opportunities for success and profit.
Review the terms of the franchise agreement
Before committing to a franchise, thoroughly review the terms of the agreement. The agreement will typically outline details such as:
➡️ The duration of the contract and the date it starts. A franchise agreement is typically 10 to 20 years long.
➡️ Renewal terms.
➡️ Territorial rights.
➡️ Any restrictions on your ability to operate the business.
➡️ How you are required to respond to requests by the franchisor.
➡️ What to do before proceeding with your own ideas and strategies.
It’s essential to understand these terms and ensure you’re comfortable with the level of control you’ll have over your facility and the obligations you’ll need to meet.
Examine the market demand and location
The location of your franchise will play a significant role in its success. Before selecting a franchise, research the local market to determine the demand for self storage services in your area.
Speak with other franchisees
One of the most valuable steps in choosing the right franchise is to speak directly with current or former franchisees. Making this connection will provide insight into the:
➡️ Day-to-day realities of running the business
➡️ Level of support they’ve received from the franchisor.
➡️ Profitability of the franchise.
Reputable Franchise Opportunities in the UK
Now, let’s look at a great franchise opportunity in the UK:
✔️ easyStorage
easyStorage offers a convenient and cost-effective alternative to traditional self storage facilities. They provide a simple approach to storage, focusing on efficiency and affordability. The company offers mobile and container storage as well as packing services.
💰 Initial investment: £45,000
💰 Franchise fee: £18,500
✔️ Door to Store
Door to Store offers a low-cost startup franchise opportunity that allows you to start earning within weeks, thanks to a streamlined approach.
Inquiries are routed through Door to Store’s central hub, where quotes and orders are processed on your behalf. Once a client confirms, you’ll then take ownership of the order and ensure smooth delivery and construction of a storage unit.
💰 Initial investment: £40,000
💰 Franchise fee: £15,000
Reputable Franchise Opportunities in the U.S.
Now that you know how to choose the right franchise, let’s look at some opportunities available in the U.S.:
✔️ Go Mini’s
Go Mini’s is a fast-growing portable storage and moving franchise offering both local moving services and temporary portable storage containers.
They’re recognized for their excellent customer service, top-notch products, and a strong support system.
They stand out for their franchise model that requires minimal staff, no warehouses, and provides a high return on investment (ROI) through recurring income.
💰 Initial investment: $292,000 to $635,000
💰 Franchise fee: $45,000
✔️ Storage Authority
Storage Authority is a franchise that offers a massive opportunity in the growing self storage industry.
The franchise offers a comprehensive approach to setting up and operating a self storage facility, including land acquisition, site planning, construction, sales, and marketing assistance.
💰 Initial investment: $500,000 to $4,000,000
💰 Franchise fee: $69,000
Reputable Franchise Opportunities in Europe
Here are two franchise opportunities to look into in Europe:
✔️ HOMEBOX
Founded in 1996, HOMEBOX is the number one self storage company in France, with a €96 million yearly turnover. They’re currently the only company to operate such an extensive self storage network, with over 130 sites.
💰 Initial investment: €100,000
💰 Franchise fee: €20,000
✔️ uStore-it
uStore-it, based in Spain, offers self storage franchise opportunities in various locations with a proven business model. The brand has already established national recognition, and you’ll receive ongoing support and training.
💰 Initial investment: €65,000 to €75,000
💰 Franchise fee: €17,500
The Ultimate Solution for Your New Self Storage Business
When you invest in a franchise, you already have brand awareness and work with a proven business model. On the other hand, you’ll have less control over your business, and you’ll depend on the franchisor’s performance.
Regardless of whether you choose to invest in a franchise or start your own business from scratch, Stora is the best software to help you run a profitable facility.
With a user-friendly interface, real-time reporting, and customizable features, Stora streamlines the management of your operations, helping you reduce administrative overhead while boosting efficiency.
You can easily manage inventory, automate billing, and enhance customer service, all from one centralized platform.
Are you ready to elevate your self storage business? Book a Stora demo today to experience how our software can support your growth and success.
