Storage Authority Franchise Cost, Profit, Failure Rate 2024

The self-storage industry is booming – revenue has increased to nearly $39 billion and continues to grow as more people move away from traditional housing models and look for more flexible living arrangements and demand for self-storage units increases.

This presents an excellent opportunity for those interested in self-storage business ownership, and Storage Authority is poised to help.

Storage Authority Franchise offers a turnkey business model that helps entrepreneurs harness the potential of owning their own self-storage facility.

It provides franchisees with an array of progressive tools and resources to help them achieve success quickly and cost-effectively. It is one of the 10 best self-storage franchises that you must own.

In this article, we will cover everything you need to know when considering opening a Storage Authority Franchise.

We’ll discuss the company’s mission, history, and background, as well as the costs, requirements, and legalities associated with opening a Storage Authority Franchise.

Storage Authority Franchise
Storage Authority Franchise

About Storage Authority Franchise

Storage Authority is one of the leading self-storage franchises in the United States.

Their mission is to provide entrepreneurs with a turnkey business model that helps them quickly and cost-effectively create, grow, and manage their own self-storage facility.

Storage Authority Franchise operates independently owned franchise facilities around the country.

They provide support services such as land search, design, construction guidance, regulatory approval processes, marketing, and operating advice.

Storage Authority prides itself on being manager-driven, so all decisions are made by those most familiar with the local market conditions.

The company offers a variety of resources for prospective franchisees, including access to an industry-leading software platform that provides automated customer service capabilities, online payment options, and more.

Storage Authority also provides ongoing operations support and training opportunities to ensure franchisees have the necessary tools and knowledge to succeed.

Considering the massive potential of the self-storage industry and the support and resources provided by the Storage Authority Franchise, it is an appealing option for entrepreneurs.


Storage Authority Franchise History

Storage Authority Franchise History

Storage Authority first opened its doors in 2016, founded by self-storage veterans Marc Goodin and Garrett Byrd.

With almost 40 years of experience as a civil engineer, Marc Goodin, the current president of the company, has worked closely with self-storage owners on all aspects for more than 3 decades.

Meanwhile, the franchise director Garrett Byrd has over 20 years of experience in real estate and self-storage management.

He is widely regarded as a self-storage expert in sales, marketing, management, and customer satisfaction.

Together with the rest of their team, they have a collective experience of 50 years in self-storage and franchising.

Under their leadership, Storage Authority Franchise has grown to become one of the leading self-storage franchises in the United States.

The idea behind Storage Authority was to develop a first-of-its-kind self-storage franchise business that would provide entrepreneurs with a turnkey business model designed to help them create, grow, and manage their own self-storage facility quickly and cost-effectively.

Storage Authority operates independently owned franchise facilities around the US, providing support services such as land search, construction guidance, design assistance, regulatory approval processes, marketing, and operating advice.


Franchise Model Table

Cost Or FeesAmount
Initial Investment$1,000,000–$3,500,000
FranchiseYES
Franchise Fee$39,000
Royalty Fee6%
Liquidity$1,000,000–$3,500,000
Estimated OutletsN/A

How Much Does It Cost To Open A Storage Authority Franchise?

Since there are multiple options to consider when opening a Storage Authority Franchise, the exact investment will vary based on various factors.

The main factor is whether you decide to buy an existing facility, convert an existing building, or build a new facility.

To open a franchise, you must have $1 million to $3.5 million in cash liquidity, individually or among partners.

The franchise fee for Storage Authority is $39,000. This fee covers a broad range of services, such as being authorized to use the Storage Authority brand, access to the Operations Manual, and site selection services.

There is also an additional optional one-time fee of $27,000 for guidance with development if you are not buying or do not own an existing facility.

This fee covers services such as help with finding a suitable location, design and construction assistance, and more.

Additionally, there is a one-time fee of $3,000 for assistance with preparing a customized Storage Authority website for your location.

On top of the initial fees listed above, Storage Authority franchises must pay 6% royalty fees on gross revenues as well as 2.5% sales, marketing, technology, and website fees each month.

The total cost to open a Storage Authority franchise can range significantly depending on the type of facility you decide to open.


Storage Authority Franchise Requirements

To become a Storage Authority franchisee, there are several requirements you must meet.

The minimum cash liquidity requirement is $1 million to $3.5 million, either individually or amongst partners.

Additionally, you will need to meet certain criteria related to land and facility size, location, and other factors.

For instance, you will need a minimum of 6 acres of land that can accommodate a one-story facility of 50,000-60,000 square feet if you are building a new facility.

If you prefer to buy an existing facility, you must ensure that it meets the specific requirements set by Storage Authority.

Moreover, you will need to secure the necessary permits and approvals from the relevant authorities to build or operate your self-storage facility.

Storage Authority Franchise provides guidance and assistance in the approval and regulatory process.

As a franchisee, you will be expected to participate in the ongoing training and support programs offered by Storage Authority.

This includes attending industry conferences, webinars, and in-person training sessions.

You will also need to adhere to the standards and protocols set by Storage Authority with regard to operations, marketing, customer service, and other areas.


Storage Authority Franchise Revenue & Profit

Storage Authority Franchise Revenue & Profit

The revenue and profit of a Storage Authority franchise can vary depending on the size of the outlet, number of employees, location, etc.

For this reason, Storage Authority has not made any representations about the performance of its franchises, and as such, there is no information available on the revenue and profit of Storage Authority franchise.


Payback Period Of Storage Authority

With a midpoint investment of $3,027,500 and an estimated 15% profit on the average net revenue, the yearly profit would be $62,942.25.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $8,956,445 / $1,128,130 = 48.09 years

Based on these figures, it will take approximately 48 years to pay back the initial investment for Storage Authority. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Storage Authority

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202034+1
202142-2
202221-1

For the Franchised outlets:

  • In 2020, the failure rate was (1)/3×100≈33.33%
  • In 2021, the failure rate was (2)/4×100≈50%
  • In 2022, the failure rate was (1)/2×100≈50%

According to the above-mentioned data, We can see that the franchised outlets for Storage Authority declined from 2020 to 2022, showing a failure rate between 33.33%% and 50%. 

This indiactes that it is risky to invest in the franchise at the time since it the number of outlets are decreasing constantly.


Storage Authority Franchise Training And Support

Storage Authority franchisees can expect comprehensive training and support throughout the lifetime of their exposure to the Storage Authority brand.

Starting from the initial training, you will be walked through each step in launching a successful self-storage facility.

Through classroom and textbook learning, Storage Authority offers an extensive three-day workshop at its Training Center in Florida that features real-life situations to help you prepare for running your own business.

In addition to this primary training session, Storage Authority provides online and phone support during a four-week period immediately prior to opening.

This helps ensure that all aspects are addressed before the start-up day, including marketing strategies, customer service standards, operational guidelines, and more.

The Dynamic Ease Development Series offered by Storage Authority is also an invaluable resource, featuring 7 detailed chapters of information, checklists, and worksheets.

This is an essential tool to help you succeed in the development process and provide guidance throughout your business’s life.

Finally, franchisees will be provided with ongoing assistance from a Franchise Development Director who will ensure that all promotional materials are up-to-date and assist with any operational issues that may arise.


Storage Authority Franchise Terms Of Agreement & Renewal

Once you have met the requirements and have been approved to become a Storage Authority franchisee, you will sign a franchise agreement with the company.

The initial term of the agreement is for 10 years, and upon meeting certain requirements, it can be renewed for an additional 10 years.

During the initial term, franchisees are expected to comply with all of the requirements and guidelines set by the Storage Authority.

This includes adhering to operational, marketing, and customer service standards, participating in ongoing training and support programs, and paying the required fees.

At the end of the initial term, franchisees may choose to renew their franchise agreement for an additional 10 years.

To be eligible for renewal, franchisees must meet certain requirements set by Storage Authority.

These requirements may include maintaining a certain level of sales, adhering to operational and customer service standards, completing ongoing training and support programs, and paying the required fees.


Storage Authority Franchise Obligations And Restrictions

The franchise agreement also outlines certain obligations and restrictions that are applicable to Storage Authority franchisees.

These include maintaining the standards of quality established by the Storage Authority, refraining from using trademarks or other materials associated with the brand without prior written consent, and adhering to operational policies and procedures.

In addition, franchisees must adhere to a strict code of ethics which includes providing honest service to customers, dealing fairly in all transactions, and displaying respect for fellow employees.

Finally, it is important to note that Storage Authority reserves the right to terminate any franchise agreement at its sole discretion if these requirements are not met.


Storage Authority Franchise Financial Assistance

Storage Authority understands that starting a business can be a significant financial investment, which is why they offer guidance and recommendations for obtaining financial assistance.

While Storage Authority does not provide direct or indirect financing, they highly recommend seeking Small Business Administration (SBA) loans.

SBA loans are government-guaranteed loans designed to help small businesses get the financing they need to get started.

These loans come with significant benefits, including lower interest rates, longer repayment terms, and more flexible eligibility requirements than traditional bank loans.

Storage Authority franchisees can take advantage of these benefits by applying for an SBA loan to help cover the costs associated with starting a new self-storage facility.

The funds from an SBA loan can be used for various purposes, including purchasing land, constructing a facility, leasing equipment, and more.

Potential franchisees interested in storage can investigate opportunities with Garage Force franchise and Garage Experts Franchise.


Storage Authority Comparison

CompanyStorage AuthorityGo Mini’s
Year Founded20162002
Franchise Fee$39,000$45,000
Initial Investment$1,000,000–$3,500,000$342,804–$662,704
Number of OutletsN/AN/A

Conclusion

The self-storage industry is growing rapidly, making now a great time to consider opening a Storage Authority franchise.

Storage Authority offers comprehensive guidance throughout the life of your business and provides ongoing support and assistance from their Franchise Development Director.

Now that you know more about Storage Authority Franchise terms of agreement and renewal, as well as the financial assistance options available, you can begin your journey to franchise ownership.


FAQs

Does Storage Authority Offer Franchising?

Yes, Storage Authority offers franchising opportunities for those interested in owning and operating a self-storage facility.

Who Founded Storage Authority?

Storage Authority was founded in 2016 by self-storage veterans Marc Goodin and Garrett Byrd.

Is Opening A Storage Authority Franchise A Good Investment?

Yes, many people have found success by opening a Storage Authority franchise.

The self-storage industry is growing rapidly and offers the potential for substantial returns on investment.

Where is Storage Authority headquartered?

The headquarters of Storage Authority is located in Washington Boulevard, Sarasota, Florida.

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