Rental companies in different industries are generally lucrative businesses because the potential to grow is unlimited.
U-Haul is one of those rental companies specialising in renting trucks, trailers, and self-storage spaces. It is also one of the 10 best self-storage units franchise that you must own to earn profit.
They have been in operation for decades, and they are quite famous, with thousands of stores.
Getting a piece of this company through franchising might seem like a good idea.
They don’t offer direct franchising, but they have a partnership system that allows people to rent their products. This article will go over U-Haul and its partnership system.
About U-Haul and Its History
U-Haul is a quite famous American truck, trailer, and self-storage space rental company headquartered in Arizona.
The company has been operating and partnering with other small businesses since 1945. They don’t have a direct franchising system.
They have a dealership program which includes the company paying a commission.
You give the unused space in your business for U-Haul to give you trucks, trailers, and spaces to rent out. With each rental you make, you get almost 21% commission.
Franchise Model Table
| Initial Investment | NO |
| Franchise | Partnership/Dealership |
| Franchising Since | 1945 |
| Franchise-Fee | NO |
| Royalty-Fee | NO |
| Liquidity | NO |
| Estimated Outlets | 20,762 |
How Much Does It Cost To Open a U-Haul Franchise?
U-Haul is not a typical franchise because they don’t offer direct franchising. They offer partnerships, and this partnership comes at no cost to the franchisee.
All you need is your own business and a place to add U-Haultruck and trailer rental to your business.
The company gives you the truck and the trailer, and you get a commission per rental.
U-Haul Franchise Requirements
Because there is no cost associated with opening a U-Haulfranchise, they also don’t have any financial requirements.
However, they do have other requirements. The most important thing is for the franchisee to own a business, it’s better if your business has high visibility and exposure, but it’s not a must.
You will need to add U-Haul products to your business’ products and rent them to those interested. There is also no requirement to have a professional background in the moving industry.
U-Haul Profit & Revenue
The money you make through U-Haul depends totally on the number of unused land and storage you have.
According to a report by Glassdoor, the average profit for a U-Haul franchise owner is about $75,000 annually.
This is the net profit a franchise owner takes home after removing all the expenses.
Overall, the costs vary based on the number of trucks you have and rent it out. You can easily scale the operations and revenue by having more place in your business.
However, even with the average number, just a U-Haul partnership can make you more than the entire revenue of your business.
U-Haul Training and Support
U-Haul dealers receive advertising and promotional materials to help them get the word around.
They also get promoted on U-Haul’s main website, on the location finder page. You also get free sales tools for your operations.
There are no direct training programs, but you will have a dedicated field manager to answer your questions and assist your operations.
In addition, you will get materials and online help on the operations of the business that you can watch and read at any time.
U-Haul Financial Assistance
Since there is no fee to start a U-Haul partnership, there is also no support offered by U-Haul for financial assistance.
U-Haul Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Two Men and a Truck | $30,000-$85,000 | 6% | $105,500-$435,600 |
| Budget Car & Truck Rental | $20,000 | NO | $166,700-$451,000 |
| U- Haul | NO | NO | NO |
Conclusion
U-Haul is a truck, trailer, and self-storage rental company offering dealership opportunities rather than franchising.
This means there are no start-up costs or franchise fees to get started with the U-Haul partnership.
All you need is your own small business and a small place to add U-Haul products to your business.
U-Haul provides you with visibility, training, and support, and you get a certain commission from each rental you make.
It is a great business for entrepreneurs looking to increase their small business income.
FAQ
Is U-Haul a franchise?
U-Haul doesn’t offer direct franchising. They have a partnership/dealership program that allows you to rent their trucks and get a commission.
What is the U-Haul franchise fee?
There is no franchise fee because they provide you with all the products for you to rent it out.
How much should I invest to be a U-Haul franchise?
There are no start-up costs to open a U-Haul partnership. You use the existing space on your business to rent their products.
Sources
https://en.wikipedia.org/wiki/U-Haul
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.