Things To Consider Before Buying a Self-Storage Franchise

Becoming a Business Owner in the Self-Storage Industry

Starting a business will change your life long term. See if a self-storage franchise is the right business opportunity for you. With over 4,000 companies selling franchises in the U.S., selecting the right industry can be challenging. Less glamorous sectors like self-storage can offer small business owners satisfaction and profits.

Table of Contents:

Why Consider a Self-Storage Franchise
Financial Outlook
Research and Red Flags
Professional Guidance

Why Consider a Self-Storage Franchise?

The self-storage industry should be given heavy consideration for several reasons:

It’s Booming: According to the Wall Street Journal, average United States monthly bills for self-storage units have reached $155.65, the highest in five years. More than 10% of U.S. households rent a unit, and usage increased by 14% from 2017 to 2020.
Recession-Proof Investment: A self-storage facility is among the few investments that remain stable during economic downturns. This makes it a secure foundation for a profitable and long-term business plan.

Unlike many industries that suffered during the pandemic, the self-storage sector thrived. As individuals and businesses downsized or adopted nomadic lifestyles, the demand for storage space increased, highlighting the industry's resilience and the widespread need for its services.

Forbes labels self-storage as “one of the most recession-resistant asset classes.” Recessions typically depress real estate values due to decreased demand, yet the necessity for self-storage soars, offering a stable business model during economic fluctuations.

Financial Outlook

The industry’s worth was estimated at $87.65 billion in 2019 and is projected to climb to $116.25 billion by 2025—a significant indicator for those looking to start a profitable franchise business. A wide range of investors like Bill Gates have recognized the potential, having invested in major players like StorageMart.

Research and Red Flags

When considering a self-storage franchise, it’s crucial to identify potential red flags. Engaging a business mentor consultant with deep knowledge of the industry is invaluable. They can provide insights into the real estate market, help evaluate the initial investment, royalty fee, and navigate the franchise agreement to ensure you're investing in a thriving venture.

Professional Guidance

The cost of real estate coupled with high-interest rates, especially for well-positioned units, can be high. Collaborating with experienced professionals, such as real estate agents and franchise consultants, can help you avoid overpaying or falling into common traps.

Franchise ownership involves more than just the initial franchise fee. Discuss with your franchise consultant during our free consultation to match with suitable franchise businesses. They can assist in formulating a realistic business plan, preparing for both short-term and long-term challenges.

Don’t put your dreams in storage. Schedule your free 15 min call to get started towards successful business ownership with robust training and support and solid brand recognition.