U-Haul Dealer Network Franchise Cost Profit Reviews

Have you considered managing your own U-Haul dealership? It is typical to see white trucks traveling between towns that have “U-Haul” printed on the side along with thick, horizontal orange stripes between two highways. As one of the biggest American rental companies for storage and moving equipment, U-Haul Dealer Network franchise is well-known among most people. By offering a variety of services, including moving boxes, moving materials, self-storage facilities, rental trucks, and trailers, the company is considered to be the most popular option for homes that like to do things themselves. 

As per IbisWorld, despite a predicted growth of 0.8% in 2023, when profit is anticipated to reach 0.8%, industry revenue has been declining overall at a CAGR of 1.3% to $118.6 billion over the past five years.

What is the U-Haul dealer network?

Since 1945, U-Haul has been the preferred moving provider for do-it-yourselfers. Utilizing their customer dispatch feature and the patented Live Verify technology on their cellphones, U-Haul Truck Share 24/7 gives customers secure access to U-Haul trucks day and night.

Additionally, U-Haul owns and operates facilities with about 800,000 rentable storage units and somewhere around 71.6 million square feet of self-storage facilities space. The largest vendor of propane in the US is U-Haul, which also has the most permanent trailer hitches installed in the automobile aftermarket. U-Haul has received multiple accolades for being a well-known “Best for Vets” business, and has most recently received recognition as one of the 15 healthiest workplaces in the US.

 

Is U-Haul dealer network a Franchise Opportunity?

 

As a family-owned company that started in 1945 with one vehicle, U-Haul does not provide franchise opportunities per se. With more than about 20,000 locations across the US and Canada, Uhaul International, Inc. is currently the biggest independent moving company in the world. 

Facts That Nobody Told You About U-Haul dealer network

• Certain U-Haul tools are only available for local moves.
• For a one-way move, you can put on more days or miles.
• The majority of U-Haul’s moving vehicles can accommodate three people.
• You can hire more than just moving trucks.
• The gas mileage of rental moving trucks is not very good.
• Though it’s possible, you won’t need to stop at a weigh station.
• The rental trucks from U-Haul come in a range of sizes.
• Additionally, you can get your moving goods from U-Haul.
• There are age limitations.

 

U-Haul dealer network Franchise Review and Information
Industry Type	Truck Dealers
Sub Category	Independent Truck Rental Dealers
Year Established	1945
Company Name	U-Haul Dealer Network
Founder/Management Head	Leonard Shoen
Franchising Started	–
Employees at Company H.O	–
Franchise Expansion Plan	United States and Canada
Number of Units	–
Number of Franchise Units	–
Social Media Handles	Facebook
	Twitter
	Youtube
Company Office location	2727 N. Central Ave. Phoenix, AZ 85004

 

How much does a U-Haul dealer network franchise cost

To launch a U-Haul franchise, there are no franchise fee or initial cost required. In fact, getting started as a U-Haul dealer is totally free. 

 

How much do U-Haul dealer network franchise owners make?

 

If you own land that isn’t being used, you might think about making it a U-Haul dealer. This will not only provide you the opportunity to earn some additional cash, but it will also give you a great opportunity to make use of your idle workers and land. A U-Haul dealer’s average annual profit, according to Glassdoor, is about $75,536.

 

What is U-Haul dealer network franchise profit?

The annual revenue of a U-Haul dealer network unit is $4.54 billion. However, the company does not provide franchising opportunities. According to industry standards, getting a return on the franchise investment will take a very long time.

 

U-Haul dealer network Training to Franchises

They do provide training to people. However, no additional data regarding the same is available. 

 

How is U-Haul dealer network Territory Granted to Franchises

The company does not provide franchises therefore there is no territory granted to franchises. However, all you have to do is expand the business to include U-Haul vehicle and trailer rentals. It would be ideal if your area had a lot of traffic, visibility, and open space where the equipment could be displayed.

 

Does U-Haul dealer network provide Financial Assistance to Franchises?

There is no financial commitment when it comes to U-Haul Dealer Network. 

Pros & Cons of owning a U-Haul dealer network Franchise

Pros of owning a U-Haul dealer network Franchise 

 

• With cheap boxes and moving supplies, you can expand your revenue and product offering.

• Direct transfers into any bank account for weekly commissions

• With their reduced merchant fees, you can reduce your small business’s current costs.

• Through their online account center, you may access the most recent U-Haul news, see your commission statements, and communicate with other business owners just like you.

Cons of Owning a U-Haul dealer network Franchise

• Struggle to get trucks at times 

• Tend to get away from the core business 

• Does not bring in storage customers

• Requires a lot of time to start. 

 

What is U-Haul dealer network franchise reviews

Being an Uhaul dealer has a lot of benefits, one of which is the potential for substantial financial gain. Because Uhaul dealerships often have large margins, even if you only sell a small number of units each month, you can still turn a profit. Additionally, Uhaul offers a lot of help to its dealers, ensuring that you obtain the finest available goods and services.

Being a Uhaul dealer does have some drawbacks, though. It can take a lot of work, to start. Running a dealership requires you to be able to manage the paperwork and logistics, which can take a lot of time. Additionally, since Uhaul consumers will need to be able to quickly visit your business, you need to have a decent location for your dealership.

 

Franchise Deck Analysis and Overview

 

If you want to start renting trucks without making a big investment, U-Haul proves to be a fantastic option. Other than your monthly phone bill and online connection cost, you don’t pay anything to become a U-Haul dealer.

There is no requirement to pay a franchise fee or initial capital for U-Haul because it is not a franchise. Since U-Haul has been in operation since 1945, its name is well-known. They provide a range of rental vehicles and trailers in addition to storage facilities. As a result, they serve as a one-stop shop for anyone who needs to transfer their goods.

Threats to Uhaul’s cybersecurity are a concern. These dangers might manifest as malware, phishing scams, or data breaches. Uhaul must make significant investments in robust cybersecurity measures to safeguard its clients and its company. Even while U-Haul has made great strides toward complying with this upcoming law, there is still a chance that the conversion might not be successful. 

 

Potential Risks to consider before investing in a U-Haul dealer network franchise

The risk factors that U-Haul faces as a business and to its business model are listed in the following section along with their effects on society as a whole and on specific people: 

• Covid-19 Global Pandemic 

U-Haul has difficulties from decreased commercial activity, state, and local governments issuing orders to shelter-in-place, and quarantines, just like other companies across the country. There is a chance that the staff may be badly harmed and lose the capacity to continue working because on-site locations are seen as the core services for the company and have remained open for communities during the epidemic. Even though U-Haul experiences a bad quarter in 2021, it recovers strongly and experienced gains in each of the second, third, and fourth quarters.

• Operation in a highly competitive industry 

Both the truck rental and self-storage sectors have a lot of regional, national, and local rivals. Competitive pricing that is too aggressive can have a negative financial impact by causing a decline in either rental volume or customer base. The competition to U-Haul is aiming to shift technologies away from self-driving cars and toward ride-hailing services and other technologies, in addition to the extension of legislation that favor electric, autonomous vehicles. This will have a severe effect on U-Haul’s rental truck acquisition costs and necessitate infrastructure changes for both company-operated facilities and independent dealer networks to support these kinds of vehicles. 

• Economic conditions/financial market

The strength of the economy and consumer spending patterns both have an impact on U-Haul. When consumer spending falls as a result of poor economic conditions, U-Haul may endure major downturns. Additionally, U-Haul manages a large amount of rental equipment that is financed both externally through debt and lease financing and internally through operations. If the availability of external funding is restricted by financial market conditions, the fleet rotation program may suffer.

• Cybersecurity

U-Haul relies extensively on information technology systems, for example, telephone services, point-of-sale reservation systems, and payment processing, just like other businesses do. Due to this, they are vulnerable to cyberattacks and terrorist strikes, both of which have the potential to seriously disrupt their regular commercial operations and harm their reputation. 

 

Competition Analysis of U-Haul dealer network Franchises

 

U-Haul dealer network	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
U-Haul dealer network	–	–	–	$4.54 billion	–	3.4/5
HomeVestors of America Franchise	$80K – $456K	$39,000 – $80,000	–	–	–	3.3/5
Realty One GroupFranchise	$43K – $225K	$15,000 – $22,000	2%	–	–	3.0/5
The UPS Store Franchise	$122K – $508K	$9,500 – $29,950	5% + 2.5%	–	–	3.5/5
Smash My Trash	$340K – $401K	$50000	8% + 1%	30.43%	9.87-14.22 years	3.3/5
Signal Franchise	$93K – $241K	$85,000 – $170,000	4% + 3%	$6.6 million	–	4/5

The Franchise Deck rating for the U-Haul dealer network franchise is 3.4/5.0.

Conclusion: Is the U-Haul dealer network franchise worth it?

Overall, U-Haul operates both company-owned and independent dealerships and is a very profitable business. Their revenues and cash flows were negatively impacted by the COVID-19 pandemic in the first quarter of fiscal 2021, but they rebounded substantially over the next three quarters and are expected to do so going forward. Despite rising labor, liability, and shipping expenses related to U-Box transactions, the business’s robust revenues more than offset the loss. 

As mentioned above, the U-Haul franchise faces a plethora of rivals in the truck rental and self-storage sectors. U-Haul is one of the rare businesses that offer both self-storage and car rental services to consumers, giving them the benefit of effectively addressing customers’ demands at a single location. Additionally, they are extending their independent dealer network across Canada and the United States at no start-up cost, which is a fantastic opportunity to increase the profitability of your company. 

 

Entrepreneurs who want to open a franchise in the category  franchise opportunities categories can look at 

 

1. FRealty One Group Franchise 
2. The UPS Store Franchise
3. Smash My Trash Franchise
4. Signal Franchise 
5. School of Rock franchise 
6. Zero Mass Water Franchise
7. Interim HealthCare Franchise
8. OLO Builders franchise
9. HomeVestors Franchise 

 

Frequently Asked Questions (FAQs)

 

• Is the U-Haul dealer network franchise profitable?

They are a very profitable company in general but do not offer franchises. 

• Can you make money owning a U-Haul dealer network?

Yes, you can make money by owning a U-Haul dealer network. 

• Is a U-Haul dealer network a franchise?

No, it is not a franchise. 

• How much is a U-Haul dealer network franchise?

There is no initial investment or franchise fee associated with a U-Haul dealer network franchise. 

• How do U-Haul dealer network franchises make money?

The company offers the highest average commission rate in the sector—21%—across all of its product lines. While starting a franchise normally entails high start-up costs, becoming a U-Haul Dealer is completely free. By using unoccupied labor or land, you can generate extra income.