Five important details to consider before signing a franchise agreement

TWO MEN AND A TRUCK franchisee on the phone

Investing into a franchising brand is a great alternative to traditional business ownership for those who want to be their own boss, as you’re able to buy into a proven system while still being in charge of your location.

Rather than coming up with a business idea and strategy from scratch, you’re tapping into a model that has already been established. Similar to starting your own business, you’re able to run this operation as you see fit within the framework of this established brand without having to struggle through building brand recognition or coming up with fresh ideas to market your business.

Like any business venture, though, it’s important to do extensive research and due diligence to know where your investment will take you. The TWO MEN AND A TRUCK brand strives to be as transparent and honest as possible with potential franchisees so they have a strong understanding of what the business will look like for them one year in, five years in, and beyond.

Whether you’re thinking of franchising with us or with another brand, you should learn as much as you can about the brand and their operational methods, also in addition to thoroughly reviewing the brand’s franchise agreement prior to signing.

When reviewing a franchising agreement, below are a few crucial questions you should consider before moving forward.

1. How long does the agreement last, and what are the terms of renewal?

Franchise agreements generally fall within the range of five to 20 years. Make sure to verify with your franchisor that the agreement spans long enough to cover your initial investment.

2. Is the agreement one-sided?

You’ll find that some franchise agreements contain provisions which can seem to favor the franchisor, such as the ability of the franchisor to make enforceable changes at any time. As someone investing in the franchise, the brand is your most valuable asset, and you don’t want all your hard work washed away by the actions or inactions of a fellow franchisee. Franchise agreements must be strong to protect your investment.

3. What fees will I be charged?

This is a crucial question to ask right out of the gate, as it’s important to know what you’re getting. In franchising, some of the common fees you will see include the initial franchise fee, a transfer fee, a renewal fee, advertising fees, royalties, technology fees, and training fees. In some instances, a franchise may be required to use certain vendors with their own expenses. Make sure to review all of these details when making your financial projections.

4. Do I have the exclusive rights to the location I’m purchasing?

Make sure you know what your investment is getting you – there are a variety of ways that a company can divide franchise territories, and territories aren’t always exclusive.

5. Is the franchise agreement negotiable?

If you research and find out that your agreement is negotiable, it should raise concerns. It is important to make sure your franchise agreement is uniform because this ensures that you and your fellow franchisees are operating under the same terms. This also guarantees the brand you invest in will retain its quality and value.

Interested in franchising with TWO MEN AND A TRUCK? Click here to learn more!

TWO MEN AND A TRUCK® is the first and largest franchised moving company in the United States. Let us help move you forward! For more helpful tips and information on moving services subscribe to our blog and like us on Facebook.

The possibility of business ownership is what drew this North Carolina franchisee to TWO MEN AND A TRUCK

TWO MEN AND A TRUCK franchise building

Throughout the TWO MEN AND A TRUCK® brand, you’ll find endless stories of employees who began their careers within a franchise before working their way up to open their own TWO MEN AND A TRUCK franchises.

This theme stuck out to Rich Rivera, who was drawn to positive feedback he saw about the TWO MEN AND A TRUCK franchising system and the available opportunities for business ownership. Prior to joining TWO MEN AND A TRUCK, Rivera worked as a delivery driver and an operations manager for over two decades in the freight transportation industry. He found himself looking for a change in his career – specifically one that would put him on the path to his dream of business ownership – and TWO MEN AND A TRUCK immediately stood out.

“I started off as a delivery driver for FedEx about 25 years ago, then continued to work in freight transportation for many years before working in household good as an operations manager,” Rivera said. “I started at TWO MEN AND A TRUCK approximately four years ago as a franchise manager at the Durham, N.C., location before becoming a regional manager for an ownership group consisting of six TWO MEN AND A TRUCK franchises.”

With this role as a regional manager for so many TWO MEN AND A TRUCK locations, Rivera now had the footing and the experience necessary – as well as the knowledge of the brand and its operations – to set himself up for franchising. He eventually opened his first location in Goldsboro, N.C., on August 1 of 2021, and finalized years of hard work and a dream of business ownership.

“I was always interested in franchising with TWO MEN AND A TRUCK,” Rivera said. “One of the reasons I was interested in working with the company in the first place was the opportunity to eventually become a franchise owner. After a while working as an operations manager, I figured it was time to open my own [franchise]. The opportunity for growth drew me to the company.”

Rivera originally comes from the state of New York, and this is where he got his start in the freight transportation industry and his early professional career.

He later on moved down to North Carolina, which is where he first started noticing the TWO MEN AND A TRUCK brand, as there is a strong presence across the entire state. More so than just noticing the brand moving so many people in the state, he continued to learn more and read how much career promotion from within comes from the brand.

“I was well aware of the brand’s track record of employees becoming franchisees,” Rivera said.

Now, he’s finally running his own location, and the next step is being able to give others the same chance he was given when he joined on with the brand originally.

“I’ve enjoyed my career with TWO MEN AND A TRUCK, and now I have the opportunity to own a franchise and help the community and create a positive environment for my employees.”

If you’re looking to learn more about franchising with TWO MEN AND A TRUCK, visit our Franchise Development website to learn more!

TWO MEN AND A TRUCK® is the first and largest franchised moving company in the United States. Let us help move you forward! For more helpful tips and information on moving services subscribe to our blog and like us on Facebook.