By Marc Goodin

o help you understand the power of franchising, this article presents seven franchise facts, as well as seven reasons why people choose a franchise.

• 1

  Franchise businesses make up about 10 percent of all businesses in the U.S., but they account for 40 percent of total U.S. retail sales. This highlights the outsized impact franchises have on the economy. Studies claim that franchise businesses enjoy a success rate of up to three times greater than that of independent businesses. Whatever the true number, it is certain franchising affords benefits that provide greater business advantages to owners of franchised businesses.

• 2

  The total economic output of the U.S. franchise sector was estimated to be around $800 billion in 2023, contributing significantly to the U.S. economy. There are over 750,000 franchised businesses in the United States as of 2024, with franchises operating across various industries, including food, retail, healthcare, and now self-storage.

• 3

  Franchised businesses employ over 8 million people in the U.S., which makes franchising a major driver of job creation.

• 4

  A new franchise opens every eight minutes every business day.

• 5

  Franchising began to boom over 50-plus years ago with companies like Holiday Inn and McDonald’s. They realized that franchising allowed owners time to build their businesses faster because they did not have to reinvent the wheel.

• 6

  Did you know that 41 cents of every retail dollar is spent at a franchise? By far, franchising is the most successful business model ever introduced to business.

• 7

  Franchising is the fabric of many people’s success. It has changed the lives and fortunes for many who may have never done it otherwise.

I bet you have heard of the investment strategy of using OPM. (other people’s money). Are you aware of the investment strategies of using OPT and OPE? Using other people’s time (OPT) and other people’s experience (OPE) are the cornerstone of franchising. These are two additional reasons why a busy professional with no self-storage experience can develop a lucrative self-storage income and retirement nest egg. Fewer and fewer novices are getting into self-storage due to the complexity of development, operations, sales, and marketing.

The biggest self-storage returns are often when you build a self-storage facility. Building can also reduce the required investment to less than half the cash required to buy an existing facility. The development stage requires you to find, evaluate, and contract to buy land; provide designer guidance to get the site plans and architectural plans prepared; obtain the municipality’s approvals of plans; bid the project; and obtain a multimillion-dollar bank loan.

Few people have the experience to do the required work, not to mention the time to do it. A self-storage franchisee provides the road map that will reduce the time and experience required to find land, build, and operate a self-storage facility. A self-storage franchise will help you avoid the landmines and reduce your risks.

A self-storage franchise can be a very attractive business opportunity for entrepreneurs in the U.S., but like any investment, they come with both advantages and disadvantages. Your first step is to learn the pros and cons of self-storage and then decide how to build your team.

The beauty of a franchise is a combination of the franchisor’s time and experience, along with your inspiration and your hard work, produced exceptional results. This combination can provide oversized profits. But if you do not want to invest your time or run a business, a franchise is not for you. And you may want to consider an alternate investment option or using a management company.

Management companies and REITs typically have different business models than a franchise. One advantage of a franchise is it can be tailored to your hometown self-storage image and have operations that are more like a hospitality business rather than a simple investment. Think Ritz vs. Motel 6 for larger profits. A management company is not going to work as hard as you to oversee your self-storage facility for maximum profits.

If you like to do everything your way and are constantly trying new things, a self-storage franchise may not be for you. Franchisors offer comprehensive training programs for new franchisees, covering everything from development to operations and marketing. Franchisees also receive ongoing support from the franchisor, which can be critical in navigating challenges and achieving higher profits.

A call to a management company and a self-storage franchise is a good starting point for understanding the best option for you. Make sure you ask about their development guidance and No. 1 marketing strategy. If the No. 1 marketing strategy is a free month of rent, or if the phone goes to a call center instead of the facility office, I bet they are not the price leaders or use the Ritz hospitality service model.

Choosing to invest in a franchise rather than starting an independent business is a decision that many entrepreneurs make for various reasons. Here are the top seven reasons why people opt for a franchise over going it alone:

1. Franchisors offer a tried-and-tested business model that has been refined and optimized over time. Franchisees can tap into a system that has already demonstrated success, reducing the risks associated with starting a new business from scratch.
2. Most franchisors offer comprehensive training programs for new franchisees, covering everything from development to operations and marketing. Franchisees also receive ongoing support from the franchisor, which can be critical in navigating challenges and higher profits.
3. Franchisors often provide marketing guidance, campaigns, and advertising materials. Franchisees benefit from these efforts, which help drive traffic and build brand awareness without having to manage the complexities of marketing all on their own.
4. Lenders are generally more willing to finance a franchise than an independent startup, as franchises are viewed as less risky due to their established track record. Many franchisors also have relationships with banks and offer financing options to help franchisees get started.
5. According to industry studies, franchises tend to have a higher success rate than independent startups. This is because franchisees benefit from the franchisor’s experience and proven systems.
6. Franchises often have access to vendors and team members, including everything from designers to contractors to labeled products like locks and predesigned marketing materials. This helps franchisees benefit from economies of scale and ensures they can meet the needs of their business efficiently.
7. Franchisors provide franchisees with standardized operating procedures that help streamline day-to-day operations and marketing. This is particularly helpful for entrepreneurs who may not have extensive experience in managing a self-storage business.

Self-storage franchises can be a highly rewarding business with steady demand, predictable income, and scalability potential. It’s important to carefully evaluate the market, financials, and franchise offering before committing to ensure that the opportunity aligns with your long-term business goals. If managed well, a self-storage franchise can provide a solid, relatively low-maintenance business that generates steady revenue over time and typically millions in profits down the road when refinanced or sold.

While starting an independent business offers complete autonomy, the structure, support, and lower risk that come with franchising make it a popular option for many entrepreneurs. The opportunity to leverage the franchisor’s time and experience can significantly increase the chances of long-term success.

The bottom line is a self-storage franchise provides opportunities and benefits that many people would not have on their own.