2020 Storage Authority FAQ’s

Storage Authority Frequently Asked Questions (FAQ)

  1. Who should consider owning a Storage Authority franchise?

A Storage Authority franchise is right for anyone who wants to combine the best of three investment opportunities – make a solid real estate investment, own your own business, and operate a franchise — for example:

  1. Professionals (such as doctors, lawyers, and accountants) or owners of an existing business – people who want to continue their career, while operating a second business opportunity

  2. Entrepreneurs — who are looking for an investment with a solid return both in income and in real estate appreciation, now and for years to come

  3. Real estate investors — who want higher returns than other sectors, including hotel and apartments, without the headaches of typical tenants

  4. Families — who want a strong income cash flow now, into retirement, and into future generations

  5. Couples — who want to work together in their own business

  6. Owners of an existing self-storage facility — who want to take their business to the next level by crushing the local competition and becoming the preeminent hometown self-storage location

The examples go on and on.  Let’s discuss your situation and decide how “the Storage Authority difference” can help achieve your financial and career objectives.

If you would like to review more information about Storage Authority and becoming a Franchise click here.

  1. What are my options for launching a Storage Authority franchise?

There are four ways for you to launch a Storage Authority business and we have the answers you need, regardless of the option – or the combination of options — that’s right for you:

  1. To build a new facility – on property you already own or on property we will help you find

  2. To convert an existing building into a self-storage facility

  3. To re-brand a self-storage facility that you already own

  4. To buy an existing self-storage facility

  5. Why should I join the Storage Authority team as a franchisee?

A franchise gives you independence with guidance — you have the opportunity to run your own business, while benefitting from the support of a tested formula for success and an experienced team of skilled professionals.

Typically, our franchise will make the self-storage business much easier for you and reduces your risks.  It provides benefits and profits that most people cannot achieve on their own.

Franchising is a popular option in a wide variety of industries, notably restaurants, hotels, health, fitness, beauty, and automotive services.  And now self-storage.

Storage Authority is the only self-storage franchise in the United States, and we provide you with important benefits, including but not limited to:

  1. Well-developed business model – reduce your learning curve, regardless of your previous experience in business ownership and management

  2. Access to proven systems of training, operations, and marketing – rely on a built-in network of support and knowledge (see Question #9 below)

  3. National image and brand awareness

  4. Guidance about site selection, design, construction, and / or renovation (see Questions #6, 7, and 8 below)

  5. Purchasing power with preferred vendors

  6. Defined market area of exclusivity

  7. Easier to get financing – your business plan and financial projections are more credible when they are built on our historic performance success and when a lender sees that we are part of your team (see Question #5 below)

Opening a business is never a piece of cake, but a franchise can significantly reduce your risk and increase your rewards.  The internet offers many sources for more information about franchising.

  1. What steps are involved in becoming a Storage Authority franchisee and getting your doors open?

To become a Storage Authority franchisee and open your facility, you should expect to go through these 10 steps:

One – Investigate Two Basic Questions

  1. Is self-storage right for you? (see Questions #11)

  2. Is franchising right for you (see Question #3)

Two – Apply on our website: www.storageauthorityfranchise.com – Apply icon

There is no cost or obligation to apply – and by providing us with some initial background information, we can be better prepared to discuss the specific of your objectives, your situation, and your options.

Three – We’ll Talk So You Can Learn More

After we review your application, we’ll arrange a phone call or Zoom conference to discuss how the Storage Authority business opportunity can help you meet your financial and career objectives.

You’ll be assigned a Storage Authority Franchise Director to serve as your primary contact throughout the due diligence and discovery process.  This enables you to get real answers from a real person.  No long waits for service.  No transfers to multiple staff people.

Typically, two or three phone conversations with your Franchise Director – in conjunction with your independent homework and research – are enough to learn the Storage Authority basics and to confirm that we’re a good fit together.

Four – Review Our Financial Disclosure Documents (FDD)

After you have been approved, we will send you our “Franchise Disclosure Documents and Qualification Package” that is prepared in compliance with the Federal Trade Commission (FTC) guidelines and required format.  It provides thorough information about Storage Authority, about our franchise systems, and about the franchise agreement.

Read this package in detail so you are ready to review the contents with your Franchise Director.

Five – Continue Our Weekly Conversations

You and your Franchise Director will continue having thorough discussions to assist you with the manager-driven Storage Authority systems – from finding land and gaining approvals to designing, building, and financing your facility; from operations to our premium sales, marketing, and more.

Six – Financial Review

Your Franchise Director will discuss the minimum financial recommendations and requirements for developing a Storage Authority self-storage facility, based on your goals and finances.  There are multiple financial options based on the location, type, and size of the development, as well as on the type of loan you plan to use – conventional or SBA.

We can introduce you to lenders who are familiar with self-storage, who understand the value of Storage Authority, and who underwrite both SBA and conventional loans, so you can explore loan options and qualification details.

Seven – Sign Your Franchise Agreement

This is often done as part of a discovery day during which we meet at our offices or at one of our self-storage facilities in Florida to get acquainted in person, but other signing options are possible.  Of course, prior to signing, you may wish to reach out to a few of our existing franchisees – we’ll gladly provide names and contact information.

Eight – Local Site Research and Selection (see Questions #6, 7, and 8)

In close consultation with your Franchise Director, you’ll determine the most suitable location for your facility.

These detailed discussions will go beyond finding land to include building your team, developing facility designs, gaining approvals, and constructing your facility – and how we will assist.  Discussions will also continue about all aspects of our manager-driven systems, notably operations, sales, and marketing.

Nine – Participate In The Storage Authority Owner And Manager Training

We offer a combination of classroom, online, and textbook learning in a variety of skills — such as pre-opening preparations; operations; sales; marketing; accounting; and human resources — so you are completely prepared to open and to do business effectively day-to-day, starting on Day One.

Ten – Celebrate Your Opening Day

It’s time to put all your energy, enthusiasm, and education to work!  We’ll guide you to and through a memorable ribbon-cutting that opens the door to your own special version of the American Dream.

  1. How much money do I need to open a Storage Authority facility – and is financing available?

The exact amount of your initial investment will be different based on the various factors associated with how you are proceeding — buying an existing facility, converting an existing building, or building a new facility.

And if you build a new facility, your investment will depend on factors such as the cost of land; the cost of developing either a single-story or multi-floor facility; and the cost of special features you choose to include.

As further background, it’s important to know about the federal government’s Small Business Administration (SBA) loans.  They are a popular financing option for our franchise owners because the SBA 7a loan requires a down payment of as little as 15% — sometimes in certain situations 10% — on a loan of up to $5 million.

That is why we suggest that to start the Storage Authority process, you have $500,000 to $750,000 available in cash – or in suitable cash and equity in facility property you already own.  This will allow you to make a reduced equity investment – meeting the SBA’s requirements of 10% to 15% — then pursue a loan of up to $5 million for the project construction and carrying cost for a suitably-sized facility in most locations.

Under this scenario, you can build a facility valued at up to $5.75 million.  This represents a substantial self-storage project – one that is not a “hobby business” and one that can be expanded as warranted.

  1. I expect to build a new facility – how much land do I need, and will you help me find the right site?

There are multiple options, but often the least expensive and most profitable is five usable acres that can accommodate at least a 50,000 to 60,000 sq. ft. one-story facility.  A larger parcel of land allows you to offer vehicle storage for recreational vehicles, boats, and cars, plus it will facilitate future expansion, if appropriate.

If you envision a multi-floor building, you typically will require less land – about 1.5 acres or more.  Of course, phased expansion is not typical and construction costs will be higher.

We will help you find the location that is “right” for the demands and competition of your market, which includes an evaluation of existing self-storage rates and the available demand for a new facility location.  Other factors we will review: the size and shape of a location; basic zoning; traffic patterns; availability of utilities; and convenient entrance / exit.

After your offer for a piece of land is accepted, we will collaborate with you and the appropriate real estate professionals during the due diligence period to evaluate a myriad of details about the location that are essential to your success – details such as easements and setback requirements; zoning, typography and slopes; sight lines; wetland, endangered species, surface coverage, or other environmental restrictions; deed ownership / restrictions; and a third-party feasibility study.

We provide guidance as you negotiate purchase and financing of the “right” real estate, and we then work closely with you and your civil engineering / architectural / construction team to develop the optimum site plan and building drawings.

  1. How much will it cost to build a new facility and how long will it take?

Building costs are different in different parts of the country, depending on costs for land; size of the facility; materials and labor; special features or finishes you choose; and zoning / ordinance requirements, to name a few.

For a detailed estimate of costs, review Item 7 of the Financial Disclosure Documents (FDD) package.

For very basic initial planning purposes – until you have more detailed costs for the location and facility that you envision – use these figures: an initial investment of between $5 million and $6 million in development, construction, and carrying costs for a 50,000 sq. ft. single-story facility on five acres of useable land that cost $800,000 or less.  Remember that the project can be – and often is – split into two phases.

The development / construction timeline can be affected by many factors, but a useful initial planning estimate is:

  1. 2 to 9 months to research and locate land

  2. 2 to 4 months to prepare civil engineering site plan designs

  3. 3 to 4 months to prepare architectural building designs

  4. 2 to 4 months to obtain appropriate government approvals

  5. 8 to 12 months for construction

Note that some of these timelines may overlap or be longer or shorter depending on a variety of factors.

For a free copy of Marc Goodin’s best selling Self Storage Development book and to learn more about Storage authority let us know here

  1. How much are your fees and royalties?

Part of your initial investment is the one-time Storage Authority franchise fee of $35,000.  You have the option of an additional one-time fee of $4,000 for our guidance with development if you are not buying or if you do not own an existing self-storage facility.

There is also a one-time fee of $4,000 for our assistance with preparing a customized Storage Authority website for your location.

There is a monthly 6% royalty fee and 2.5% marketing, sales, technology, and website fee.

  1. How will you help me through the development / construction process?

Storage Authority has developed a proprietary system that carefully guides you step-by-step through the development / construction process — from finding land through pre-opening.  Called the “Dynamic Ease Development Series,” it features seven detailed chapters of information, checklists, and worksheets.

In addition, your Franchise Development Director is available to guide you.

Although the development / construction process is never the same for any two projects, it is always a close collaboration between you, your Storage Authority representatives, and your development team.  You get the guidance and the answers you need, when you need them, so you can make the decisions and initiate the actions necessary to move your business forward.

Here is a simple outline of the “Dynamic Ease Development Series:”

  1. Chapter 1 – Introduction

  2. Building Your High-Performance Team

  3. First 30 Days

  4. Development flow charts

  5. Worksheets

  6. Major Development Milestones Checklist

  7. Competition Review

  8. Developer Secret Shop Review

  9. Partial Designer & Vendor List

  10. Vendor Approval Request Form

  11. Management Software Interfaces

  12. Chapter 2 – Land

  13. The Basics Of A Good Location

  14. Typical Basic Land Requirements

  15. Hiring A Quality Broker To Assist You With Finding Land

  16. Additional Ways To Find Land (including offline)

  17. Initial Land Review Prior To An Offer Or Feasibility Study

  18. Making The Offer & Due Diligence

  19. Feasibility Study

  20. Worksheets

  21. Sample letter for contacting landowner

  22. Questions for first meeting with government planner / staff

  23. Land parcel info

  24. Site drive-by

  25. Initial zoning review

  26. Land offer

  27. Chapter 3 – Purchasing An Existing Self-Storage Facility

  28. Seven Primary Steps Of A Real Estate Transaction

  29. Investigating An Existing Facility

  30. Chapter 4 – Banking / Lending

  31. Loan Options

  32. Loan Considerations

  33. Often Over-Looked Expenses

  34. Worksheets

  35. Loan Request Letter & Summary

  36. Chapter 5 – Design & Regulatory Approvals

  37. Finding Design Consultants

  38. Site Plan Design

  39. Regulatory Meetings

  40. Building Design

  41. Security Design

  42. Video Surveillance Design

  43. Worksheets

  44. Additional Site Plan Design Items To Consider

  45. Additional Building Design Items To Consider

  46. Site Details

  47. Owner “To Do” During Design Process

  48. Chapter 6 – Bidding & Construction

  49. Finding A Contractor

  50. Construction Specifications & Bidding

  51. Example of Schedule of Payment Categories

  52. Construction Review

  53. Chapter 7 – Pre-Opening Preparations

  54. 120 Days Prior To Opening

  55. 30 Days Prior To Opening

  56. Pre-Opening Marketing

  57. Worksheets

  58. Pre-Opening Checklist

  59. Unit Pricing

  60. First Office, Site & Product Order

  61. Component Depreciation Contact Flyer

  62. Pre-Opening Sessions With Your Franchise Director

  63. What kind of training and support will I receive from Storage Authority – before I open, then on an ongoing basis as I operate?

Our business model includes a combination of classroom and textbook learning that covers your Storage Authority business, from start-up through day-to-day operations.

We have a training center in Florida where training classes are held regularly throughout the year.  You and your manager will attend three days of initial training classes at a time that is most convenient for you.  You and your manager will also receive online / phone training during the four-week period immediately prior to opening.

In addition, you will have our unmatched package of easy-to-understand, proprietary manuals for convenient reference at any time.  Professional education reminders and updates are ongoing at Storage Authority, using a variety of platforms.

Together, the training classes, the manuals, and your Franchise Development Director provide comprehensive professional education:

  1. How much does a Storage Authority franchise make?

We do not predict sales, costs, or profits for any Storage Authority facility because these figures are impacted by a variety of factors from market to market and from owner to owner.  However, we do encourage you to carefully review the examples in our Franchise Disclosure Documents (FDD), which you will receive when your application is approved.

After you chose a location, you will arrange a feasibility study to be conducted during the due diligence period by a qualified independent third-party.  The results will provide you with a lot of detailed information, including analysis of demand; construction and start-up costs; break-even projections; and profit estimates.

We urge you to discuss the Storage Authority business opportunity with your trusted financial advisors, notably your attorney and accountant.

  1. How can I learn more about self-storage, including the market demand in my target area?

We recommend that you research two topics — self-storage and franchising.  There is abundant information about both subjects on the internet, and new articles are available regularly with the most up-to-date details.

If you conduct Google searches for “self-storage industry” and for “franchising pros and cons,” you will find a rich inventory of sources from which you can choose your reading.

Information about a specific market is typically available from a variety of local, county, and state agencies, business commissions, or planning groups that deal with economic development.  However, acquiring data from government sources can take a lot of time and paperwork.

Online apps are available to deliver market information quickly and easily for a small fee.  We can provide links to these services and guide you through using them.

Two other sources of information are:

  1. The national Self-Storage Association (SSA), which is headquartered in Alexandria, Virginia –selfstorage.org

  2. The self-storage association in your state, for which you can find contact information online

You should consider joining these two groups for ongoing information and networking.

Why not you why not know.  To get more information and to talk to a storage Authority Franchise Director: storageauthorityfranchise.com/opportunity1/  or call Marc Goodin @ 860-830-6764.

Marc & his wife GP enjoying a toast on a freshly poured self storage foundation

Marc Goodin is President of Storage Authority LLC. www.StorageAuthorityFranchise.com  He owns 3 self-storages he designed, built and manages. He has been helping others in the self-storage industry for over 25 years.   He can be reached at marc@StorageAuthority.com or directly at 860-830-6764 to answerer your self-storage franchise, development, marketing, sales and operational questions

#selfstorageconstruction #selfstoragedevelopment #selfstorageprofits

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