Risk Score
Pending analysis
Investment Range
$371,116 - $1,281,776
Franchise Fee
$18,000
Min Cash Required
$43,600
Total US Locations
8
Business Summary
MI-BOX offers and sells distinctive storage and moving services, featuring the use of proprietary lift systems and portable storage boxes. MI-BOX franchisees rent or lease these System Containers to customers for moving, storage, or other purposes at client locations. Franchisees are responsible for the drop-off, pick-up, and transportation of these containers, and also for storing them at their premises. MI-BOX targets residential, commercial, and business customers who need long-term or short-term storage, use for special events, or assistance with moving and remodeling.
Corporate History
MI-BOX L.L.C. was organized in Illinois in July 2019 and began offering franchises in 2022. The brand is identified by its primary mark, MI-BOX. The franchisor does not directly own or operate any business similar to the franchised ones. Its parent company is MI-BOX Holding Group LLC, also formed in July 2019. An affiliate, MI-BOX I.P., LLC, formed in July 2019, owns the brand's intellectual property. Another affiliate, MI-BOX Holding Company (MHC), formed in May 2005, previously entered into agreements with 38 active third-party dealers of storage containers, but has since stopped offering new dealer rights. MHC currently serves as the designated approved supplier for MI-BOX System Containers and the proprietary Lift System. MI-BOX L.L.C. also has an affiliate that owns and operates a business substantially similar to the franchised business being offered.
Financial Overview
Investment Range
$371,116 - $1,281,776
Franchise Fee (Low)
$18,000
Franchise Fee (High)
$250,000
Minimum Cash Required
$43,600
Equipment Costs (Low)
$114,577
Equipment Costs (High)
$309,877
Working Capital
$135,050
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
While MI-BOX LLC's audited financial statements present an unqualified opinion, the company's cash position significantly decreased from $200,000 in 2023 to $2,000 in 2024. There was also a substantial members' distribution of $198,000 in 2024, leading to a decrease in members' equity. The auditor's report includes a standard statement about evaluating conditions that raise substantial doubt about the company's ability to continue as a going concern for a reasonable period of time.
Financing Details
MI-BOX does not offer any direct or indirect financing to its franchisees. MI-BOX also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
8
Franchised Units
7
Corporate Units
1
Avg Square Footage
30,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
MI-BOX has a recent legal history involving three main matters. In September 2021, the California Department of Financial Protection and Innovation (DFPI) issued an order against MI-BOX Holding Company and Michael Born, finding that dealership offers constituted unregistered franchises in California. A consent order related to this was entered in June 2023, requiring MI-BOX Holding Company and Michael Born to cease such activities until properly registered and to pay a $5,000 penalty. Separately, in November 2023, a MI-BOX dealer in Florida filed a complaint against MI-BOX Holding Company and a master dealer, alleging violations of Florida's deceptive trade practices act, fraudulent inducement, franchise act violations for misrepresenting success prospects, rescission of the dealer agreement, and business opportunity law violations. This plaintiff seeks damages exceeding $50,000. Additionally, in June 2024, MI-BOX entered into a Civil Penalty Agreement with the Minnesota Commerce Department after it was determined that its affiliate, MI-BOX Holding Company, violated Minnesota law by offering and selling franchises without proper registration or exemption. MI-BOX paid a $1,000 civil penalty and agreed to not make further solicitations in Minnesota until registered or exempt.
Bankruptcy History
MI-BOX has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, MI-BOX franchisees must: (i) provide notice between 12 to 18 months before the term ends; (ii) prove they have the right to operate the business at an approved location; (iii) complete all necessary maintenance, refurbishing, and upgrades to their premises, hardware, and software to meet MI-BOX's current standards for new franchisees, no later than 90 days before the current term expires; (iv) not be in breach of any agreements with MI-BOX or its affiliates or suppliers; (v) satisfy all monetary obligations to MI-BOX, its affiliates, and approved suppliers; (vi) sign MI-BOX's then-current franchise agreement, which may have different terms; (vii) meet current training requirements; (viii) sign a general release in favor of MI-BOX and its affiliates; and (ix) pay the applicable renewal fee.
Training & Support Program
Franchisor Assistance
MI-BOX provides pre-opening assistance, including defining the designated territory, offering guidance on reviewing and approving proposed premises, and supplying a list of approved products, services, equipment, and suppliers. They grant access to their confidential Operations Manual and offer advice for preparing to open. MI-BOX also supplies items franchisees are required to purchase and, if deemed appropriate, conducts a launch visit. Before opening, MI-BOX provides initial training to the franchisee and up to two employees, covering operational responsibilities, trade secrets, truck specifications, parent and child page development, pricing, container assembly, lift system training, daily operations software, and marketing. After opening, MI-BOX may schedule additional or remedial training, provide on-site training or consultation upon request, and modify/update the System and Operations Manuals. They administer and maintain the brand website, review advertising materials, and offer periodic advice and guidance on operations and the use of proprietary marks.
Initial Training Hours
36
Training Location
Corporate headquarters in Joliet, IL, and via phone/webinar/video
Ongoing Support
After opening, MI-BOX may require franchisees and their managers to attend additional or remedial training courses. Upon request, MI-BOX can provide on-site training or consultation, though franchisees may be charged a training fee and travel expenses. MI-BOX also modifies and updates the System and Operations Manual, including lists of approved products, services, and suppliers. It administers and maintains the company website, reviews franchisee-generated advertising materials, and offers periodic advice and guidance on business operations and the use of the brand's proprietary marks and system. This advice can be provided through meetings, printed materials, online media, telephone, or email.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
2
Territory Size Requirements
MI-BOX Designated Territories are defined based on population, geography, demographics, and other factors. Typically, a territory will contain a minimum population of 300,000 individuals. For franchise fee calculation, a typical designated territory is described as having a population between 100,000 and 1,000,000.
Staffing Notes
MI-BOX franchisees are expected to be hands-on, either by personally dedicating full-time attention to managing and operating the business or by hiring a Designated Manager to do so. This Designated Manager must successfully complete the Initial Training Program and be fully committed to the daily operations. The business must always have at least one individual on staff who has completed the Initial Training Program. For the initial operating period, MI-BOX estimates an owner-operated business with up to two additional personnel. Franchisees are fully responsible for all employment aspects, including hiring, training, and complying with labor laws. Managers and other key employees are required to sign a Confidentiality and Restrictive Covenant Agreement.