Footnotes
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See ITEM 7 in the Little Guys Movers Franchise Disclosure Document (2023) for more information about the Initial Franchise Fee and available discounts.
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You must lease or otherwise obtain a suitable facility for the operation of the Franchised Business. A typical LITTLE GUYS MOVERS® Shop will be located in a retail or light industrial area near major roads or highways and will range in size from 1,500 to 5,000 square feet. It is difficult to estimate lease acquisition costs because of the wide variation in these costs between various locations. Security deposits generally are required by utilities, the landlord, and equipment leasing companies. The figures in the chart assume a lease security deposit equal to one to two months’ rent. Lease costs will vary based upon location, square footage, cost per square foot, and required maintenance costs, as well as the provisions of various leases, utilities’ policies, and your credit rating. The amounts you pay are typically not refundable, but in certain circumstances the security deposit may be.
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You will need to make improvements to the Approved Location to ensure that the facility is suitable for the operation of the Franchised Business. Construction and remodeling costs vary widely, depending upon the location, design, configuration and condition of the premises, the condition and configuration of existing services, any existing facilities such as air conditioning, electrical, and plumbing, and the terms of your lease.
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You must purchase the type of insurance in the amounts specified in the Franchise Agreement. The estimates in the chart represent the approximate down payment for the required insurance coverages (0–25% of the required annual premium). See ITEM 8 in the Little Guys Movers Franchise Disclosure Document (2023) for information about minimum insurance requirements.
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You must purchase general office supplies and typical office equipment, such as a personal computer and software, a printer, copier, telephones, cellular telephones, credit card processing equipment, desks, file cabinets, and other items. Your cost for these items will vary based on where you purchase your equipment and supplies, how much you purchase and other factors. See ITEM 11 in the Little Guys Movers Franchise Disclosure Document (2023) for more information about computer hardware and software requirements.
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You must purchase a supply of moving equipment and supplies, including tool boxes, blankets, dollies, straps, shipping boxes and other items. Your cost for these items will vary based on where you purchase the equipment, how much you purchase and other factors.
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You must purchase or lease a moving van or truck based on our specifications for size, appearance, branding, and performance, as set forth in the Manual. The estimated expenditures in the Estimated Initial Investment table include the cost to lease or finance a new vehicle and apply our custom brand truck wrap based on current market data. The low-end cost estimates reflect the down payment on the purchase or lease of the vehicle, and the high-end cost estimates reflect the paid-in-full cost of the vehicle. Your actual lease or purchase costs will vary based on your personal credit history, competition among dealers, and other factors. If you want to purchase or lease a used moving van or truck for your Franchised Business, you must first obtain our approval.
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We do not charge a fee for initial training for your Designated Manager and one additional of your employees, but you are responsible for all travel and living expenses for you and your employees in connection with training sessions. The estimate in the Estimated Initial Investment table covers the estimated cost for hotels, meals, local transportation, and airfare. If you or any of your employees live in north central Texas, your costs associated with training may be lower (assuming one or more trainees can commute from home, thereby avoiding the necessity of securing hotel accommodations). Your costs associated with training will also vary significantly depending on how far you travel, the price of fuel, number of trainees, the duration of the training, and the level or style of accommodations you choose for your trainees. See ITEM 11 in the Little Guys Movers Franchise Disclosure Document (2023) for more information about our training program
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This range includes the cost of all signage used in the Franchised Business. The signage requirements and costs will vary based upon the size and location of the Franchised Business, local zoning requirements and local wage rates for installation, among other things.
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At least one month prior to the opening of your Franchised Business, you must engage and launch a Digital Media Setup marketing and advertising plan in accordance with our requirements, including website development, a digital paid media campaign, and, in some cases, a social media consultation plan. See ITEM 11 in the Little Guys Movers Franchise Disclosure Document (2023) for more information about our Pre-Opening Marketing Campaign requirements.
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We recommend that you employ an attorney, an accountant and other consultants to assist you in establishing your Franchised Business. These fees may vary from location to location depending upon the prevailing rates of local attorneys, accountants and consultants.
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You will likely incur various miscellaneous charges for things like the printing of advertisements and business forms, joining local business organizations, like the Chamber of Commerce, and other things.
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We recommend that you have a minimum amount of money available to cover operating expenses, including employees’ salaries, for the first 12 months that the Franchised Business is open. Because the moving business can be highly seasonal, you may need more working capital depending on the time of year you open for business. These estimates do not include managerial salaries or any payments to you. These estimates also do not include finance payments, charges, interest, and related costs you may incur if any portion of the initial investment is financed. We relied on our affiliates’ operating experience in compiling these working capital estimates.
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The amounts shown are estimates only. Your actual costs may vary significantly depending on your lease terms, geographical location, and other business terms. You should review these estimates carefully with an accountant or other business advisor before making any decision to buy a franchise. Neither we nor our affiliates will finance any part of your initial investment. All amounts are non-refundable unless otherwise noted.
Because we currently do not offer a formal multi-unit development program, we have not included a separate table of estimated initial investments for franchisees owning more than one Shop, but a franchisee owning more than one Shop can expect to incur approximately the same costs for each Shop it develops, subject to any applicable discounts to initial franchise fees and further subject to inflation and other increases in costs over time.
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The data in this section has not been reviewed or audited by an independent certified public accountant for this purpose, nor have we independently verified any data provided to us by our franchisees. The explanatory notes following each chart are an integral part of this financial performance representation and should be read in their entirety for a full understanding of the information contained in each chart.
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This figure reflects the average unit gross revenue of all Mature Affiliates during the Measuring Period. It was calculated by adding the total gross revenue realized by each Mature Affiliate during the Measurement Period and then dividing that number by the total number of Mature Affiliates. The data used to calculate this revenue figure does not include the amount of any sales tax added as required by state and local law. Nine (9) Mature Affiliates contributed to the data reflected here.
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This figure reflects the average unit gross revenue of only those Mature Affiliates that were in the top third (33%) of all Mature Affiliates in terms of highest unit gross revenue during the Measurement Period. It was calculated by adding the total gross revenue realized by each of the applicable Mature Affiliates during the Measurement Period and then dividing that number by the total number of applicable Mature Affiliates. The data used to calculate this revenue figure does not include the amount of any sales tax added as required by state and local law. Three (3) Mature Affiliates contributed to the data reflected here.
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This figure reflects the average unit gross revenue of all Mature Franchisees during the Measuring Period. It was calculated by adding the total gross revenue realized by each of the Mature Franchisees during the Measurement Period and then dividing that number by the total number of Mature Franchisees. The data used to calculate this revenue figure does not include the amount of any sales tax added as required by state and local law. Five (5) Mature Franchisees contributed to the data reflected here.
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This figure reflects the average unit gross revenue of only those Mature Franchisees that were in the top third (33%) of all Mature Franchisees in terms of highest unit gross revenue during the Measurement Period. It was calculated by adding the total gross revenue realized by each of the applicable Mature Franchisees during the Measurement Period and then dividing that number by the total number of applicable Mature Franchisees. The data used to calculate this revenue figure does not include the amount of any sales tax as required by state and local law. One (1) Mature Franchisee contributed to the data reflected here.
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The data included in this section has not been reviewed or audited by an independent certified public accountant for this purpose, nor have we independently verified any data provided to us by our franchisees. The explanatory notes following each chart are an integral part of this financial performance representation and should be read in their entirety for a full understanding of the information contained in each chart.
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The average unit gross revenue figures in this column were calculated by adding the total gross revenue realized by each of the Operational Affiliates during the applicable year of operation and then dividing that number by the total number of Operational Affiliates that have reached that year of operation. The total gross revenue figures used to calculate these revenue figures do not include the amount of any sales tax added as required by state and local law. The number of Operational Affiliates that contributed to the data reflected here are as follows: Years 1–4 include six Operational Affiliates; Year 5 includes five Operational Affiliates.
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The average unit gross revenue figures in this column were calculated by adding the total unit gross revenue realized by each of the Operational Franchisees during the applicable year of operation and then dividing that number by the total number of Operational Franchisees that have reached that year of operation. The total unit gross revenue figures used to calculate these revenue figures do not include the amount of any sales tax added to sales amounts as required by state and local law. The number of Operational Franchisees that contributed to the data reflected here are as follows: Year 1 includes seven Operational Franchisees; Years 2–4 include four Operational Franchisees; Year 5 includes three Operational Franchisees.
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The data included in this section has not been reviewed or audited by an independent certified public accountant for this purpose, nor have we independently verified any data provided to us by our franchisees. The explanatory notes following each chart are an integral part of this financial performance representation and should be read in their entirety for a full understanding of the information contained in each chart.
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The average Direct COGS figures were calculated by adding the total combined cost of goods (including hourly and contract payroll expenses, packing supplies, mileage and fuel, rental equipment, and similar costs) incurred by each of the applicable Mature Affiliates during the Measurement Period and then dividing that number by the combined total gross revenue (less discounts) realized by all applicable Mature Affiliates during the Measurement Period.
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Nine (9) Mature Affiliates contributed to the data labeled “All Units” in this section.
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Figures labeled “Top Third Units” in this section reflect the average operational costs of only those of our Mature Affiliates that were in the top third (33%) of all Mature Affiliates in terms of lowest category costs as a percentage of gross revenue during the Measurement Period. For each category of costs, there were three (3) Mature Affiliates that contributed to the data reflected here.
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The average Truck Cost figures were calculated by adding the total combined moving truck expenses (including leases, lease maintenance, and owned-vehicle maintenance, but excluding principal and interest on owned vehicles) incurred by each of the applicable Mature Affiliates during the Measurement Period and then dividing that number by the combined total gross revenue (less discounts) realized by all applicable Mature Affiliates during the Measurement Period.
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The average Occupancy Cost figures were calculated by adding the total combined occupancy costs (including rent, common maintenance, and taxes) incurred by each of the applicable Mature Affiliates during the Measurement Period and then dividing that number by the combined total gross revenue (less discounts) realized by all applicable Mature Affiliates during the Measurement Period.
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The average Direct COGS figures were calculated by adding the total combined cost of goods (including hourly and contract payroll expenses, packing supplies, mileage and fuel, rental equipment, and similar costs) incurred by each of the applicable Mature Franchisees during the Measurement Period and then dividing that number by the combined total gross revenue (less discounts) realized by all applicable Mature Franchisees during the Measurement Period.
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Five (5) Mature Franchisees contributed to the data labeled “All Units” in this section.
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Figures labeled as “Top Third Units” in this section reflect the average operational costs of only those of our Mature Franchisees that were in the top third (33%) of all Mature Franchisees in terms of lowest category costs as a percentage of gross revenue during the Measurement Period. For each category of costs, there was one (1) Mature Franchisees that contributed to the data reflected here.
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The average Truck Cost figures were calculated by adding the total combined moving truck expenses (including leases, lease maintenance, and owned-vehicle maintenance, but excluding principal and interest on owned vehicles) incurred by each of the applicable Mature Franchisees during the Measurement Period and then dividing that number by the combined total gross revenue (less discounts) realized by all applicable Mature Franchisees during the Measurement Period.
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The average Occupancy Cost figures were calculated by adding the total combined occupancy costs (including rent, common maintenance, and taxes) incurred by each of the applicable Mature Franchisees during the Measurement Period and then dividing that number by the combined total gross revenue (less discounts) realized by all applicable Mature Franchisees during the Measurement Period.