What are the financial requirements to open a Little Guys Movers franchise?
Most franchisors look at liquid capital, net worth, and the like. These things are important to us, but not as important as a compatible mindset, positive attitude, and a do-or-die work ethic. We want to see a combined credit score of 700 or higher and proof that you will be able to secure the financing to get your shop rolling. If you think youâve got what it takes, weâre interested in talking with you about your unique situation.
What is the franchise fee?
Little Guys Movers franchise fee is $30k. (25% less for veterans.)
Do I need experience in the moving industry?
Absolutely not. In fact, we prefer that you donât â bad habits can be hard to kick!
What is the ideal market size for a Little Guys Movers shop?
While we really believe in our program and know that it can work almost anywhere, our ideal markets provide a constant stream of clients and employees throughout the flux of seasons of the year. City populations between 50,000 – 250,000 and MSAs (Mean Serviceable Areas) of 300,000+ tend to be ideal. Of course these numbers can be massaged some, but this is a good benchmark.
How much does it cost to actually get a shop up and running?
Depending on the market size and lease rates in your area, the cost of opening a shop generally varies between $80,000 to $200,000.
How long does it take to get open?
Once an agreement is signed it should take approximately 3-6 months. Training lasts six weeks, but depending on inventory (available and viable locations), site selection can sometimes take time.
Does Little Guys provide financing?
At this time, we do not provide financing, but we are exploring our possibilities to have options available in the future.
How much are royalties and how are they calculated?
Royalties are calculated as a percentage of gross (not net) sales on a monthly basis. We try to keep the royalty element from being a hindrance early on, so over the course of the first year, royalty percentages are implemented as follows:
Months 1-6: 0%
Months 7-12: 3%
After First Year: 6%
What is a “Brand Development Fund” and does Little Guys have one?
A Brand Development Fund is an additional 2% fee that, if implemented, would be used for many different development concepts, benefiting all locations and the Little Guys Movers brand as a whole. Little Guys is not currently implementing a Brand Development Fee.
How long does it take to start turning a profit?
Federal regulations handcuff us a little on talking about potential earnings, but we like to see a store running full blast in under three years.
How much money will I make?
Once again, the Feds make us bite our lips on making any guarantees about earnings and profits, but we would encourage you to talk to one of our current franchisees, who can share openly about these things. We are happy to help get you in touch with them.
Who chooses the city and building location?
Since we will be partners, we will all have to agree on the city, the area in that city, and the specific facility. This can be a really fun part of the experience; it allows us to spend time together AND make the best decision regarding your new shop!
Do I have to buy my equipment from Little Guys or can I get it anywhere?
While we will steer you in the direct of our preferred vendors, Little Guys Movers proper does not require you to buy anything directly from us.
What is the training like?
This is another really cool part of the experience. We have both classroom-style fundamental training and real-time training at an existing shop that includes field and office experience. Yes, you are definitely going to do some moving!
Once I get my shop open, am I on my own?
Yes, once you are up and running you will never hear from us again. Just kidding! We have a national office of experts who will monitor your progress and counsel you on the many moving parts of the system as we go forward. The feedback loop is two-way, which means if we see something going wrong, we will tell you, but likewise if you have a question or a concern, we are always available. Video conferencing has become a staple that we rely on often.
How long is the franchise agreement good for?
A signed agreement is good for five years with three consecutive five year optional renewals. In reality, these terms just allow the agreement documents to be updated periodically to reflect any changes that may have occurred internally, like processes and systems, or externally, like new federal and state regulations or required language.
What is an FDD?
The Franchise Disclosure Document is the agreement that lays our all the rules and regulations of our relationship.