by John Stevens
December 17, 2010 8:36 AM
In the franchising business, it looks like moving and the storage industries are growing strong, finding a place on Entrepreneur Magazine’s end-of-the-year Top 10 Franchising Trends for 2010.
Specifically named in the storage category was Zippy Shell USA, LLC. Founded in 2009 and located in Jersey City, NJ, this franchisor is a privately-held company with fast-growing potential.
The franchise fee for Zippy is between $25,000 to $50,000. The ongoing royalty fee that goes to the company is 8 percent and the term of agreement is 20 years, which is renewable.
The fact that a storage facility made it onto the top franchiser’s list is a further sign that the storage industry is beginning to pick up steam in the financial markets. The need for storage also remains strong among the population as people buy more and need to store the old.
“Americans move, on average, every five years, and with the economy starting to recover, moving and storage businesses can expect their services to be in greater demand,” said a representative from Entrepreneur.com.
When pursuing a self storage franchise there are two most important aspects to consider. Inspect financial records which can show you if the company is profitable and provide you with a basis of confidence or concern. Also the Federal Disclosure Document (FDD) should be reviewed and contain such information as the terms of its history regarding prior ownership, the background and positions of key management employees, litigation history, bankruptcy history, and any financing programs the company has in place for franchises.
Zippy Shell is a door-to-door self storage business, which gives customers the option of storing and decluttering at greater convenience.
"The Zippy Shell brand was born from a group of franchising industry veterans who saw a market need and are fulfilling it with a unique business opportunity," said Rick Del Sontro,President, Zippy Shell USA, LLC in a press release. "The Zippy Shell system demonstrated success across Australia, and it was a viable model to be brought to the U.S. for several reasons - among them the lower cost of capital, allowing for franchisees to deliver a lower priced, yet highly convenient self storage solution to consumers."
The franchise award-winning company is a member of the International Franchise Association (IFA) and several trade organizations. During the past year, the company has grown considerably. It holds 25 markets across the country, including Mid Atlantic states, Michigan,Georgia, south Florida, the San Francisco Bay area and Collin County, Texas.
"From an investor standpoint, we feel our offering is unmatched in the market. It means lower initial and ongoing capital requirements than our competitors, and provides operators with a unique, proprietary distribution system," continued Del Sontro. "For customers, it's simple – we provide self storage that is more cost effective and convenient than the other services. We have a solution that enables them to store their goods without ever leaving their property. In today's busy world, that makes a difference."
Sources Used:
“Zippy Shell Mobile Self Storage Among Top Franchising Trends for 2010.” PRWeb. Dec. 16,2010.
Zippy Shell Mobile Self Storage. Entrepreneur.com. 2010.
“What’s the Best Franchise for You?” FranChoice. 2010.