Storage Authority Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$298,000 - $9,517,000
Franchise Fee
$69,000
Total US Locations
3
Business Summary
Storage Authority offers franchisees the opportunity to operate a self-storage facility. This business involves renting out individual storage unit spaces of various sizes, usually on a short-term basis, where tenants can store personal property. Franchisees can choose from three models: constructing a new facility, converting an existing self-storage outlet, or operating a Storage Authority Express, which allows for converting up to three smaller outlets that total up to 50,000 gross square feet combined for a single franchise fee.
Corporate History
Storage Authority, LLC was formed as a Florida Limited Liability Company in July 2014. The co-founder, Marc Goodin, has been involved in operating self-storage businesses through various companies since 2004. Storage Authority began offering franchises in 2015. While the company itself has not directly operated a Storage Authority business, its President, Marc Goodin, has co-owned and managed self-storage facilities under the Storage Authority trade name since 2004, through licenses granted by Storage Authority, LLC.
Financial Overview
Investment Range
$298,000 - $9,517,000
Franchise Fee (Low)
$69,000
Franchise Fee (High)
$69,000
Royalty %
6%
Marketing %
2.5%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$125,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditors concluded that Storage Authority's financial statements present fairly, in all material respects, the company's financial position and cash flows in accordance with generally accepted accounting principles. However, a special risk highlighted in the FDD indicates that Storage Authority's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. The company has a Member's (Deficit) of $(572,608) as of December 31, 2023, which grew from $(304,464) in 2022, and its cash balance decreased from $635,198 in 2022 to $464,233 in 2023.
Financing Details
Storage Authority does not offer direct financing or guarantee any notes, leases, or obligations for its franchisees. However, the company may refer franchisees to third-party lenders such as Innovative Financing Solution (IFS), Bank Five Nine Financial, and Live Oak Bank, which offer various SBA 7(a) and 504 loan programs, as well as conventional commercial loans. Storage Authority may receive referral fees of 1-2% of the loan amount from these lenders for successful referrals.
Performance Metrics
Total US Locations
3
Franchised Units
1
Corporate Units
2
Avg Square Footage
60,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Storage Authority has no litigation to report. The franchisor or its management have not been involved in any material litigation proceedings.
Bankruptcy History
Storage Authority has no bankruptcy history to report. Neither the franchisor nor its management have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew the Storage Authority franchise, franchisees must be in good standing, provide notice within 180 days prior to the expiration of the term, and ensure all monetary obligations owed to Storage Authority are fully satisfied. Storage Authority may also require franchisees to sign the then-current form of franchise agreement, which could contain materially different terms, and, at its option, sign a general release of claims against the company.
Training & Support Program
Franchisor Assistance
Before opening, Storage Authority grants and defines the franchisee's exclusive territory, provides initial training for the franchisee and one additional person, loans a copy of the confidential Operations Manual, provides initial forms and publications upon request, offers minimum design standards (but not design services), approves the location for renovation or construction, guides on procurement of signs, fixtures, equipment, inventory, and supplies, assists with website and management software setup, and makes the Development Dynamic Ease Series Guidebook available. During operations, Storage Authority provides ongoing phone, email, or mobile consultation, offers pricing recommendations, may sponsor mandatory annual seminars (franchisee pays expenses) when the network reaches 15 open facilities, distributes manual supplements, offers new manager training (for a fee), maintains a website with a subdomain for each franchisee, provides additional consulting services upon request (for a fee), specifies third-party vendors for property management software, property access control software, and rental kiosk software, protects the brand's marks, and may send secret shoppers (for a fee) to assess the facility and provide findings.
Initial Training Hours
49
Training Location
Online, Sarasota FL, or CT
Ongoing Support
After opening, Storage Authority provides continuing support through phone, email, or mobile consultations during normal business hours for day-to-day operational questions. Storage Authority assists with pricing recommendations for the market area and may sponsor annual seminars on management, sales, marketing, and industry trends once the network has at least 15 open facilities (attendance is mandatory, and franchisees cover travel, living, and a share of event expenses). The franchisor distributes periodic updates to its confidential Operations Manual and other information of general interest. New manager training or additional adequate training deemed necessary by Storage Authority is available for a fee. Storage Authority maintains a website with a subdomain for each franchisee and conducts sales, marketing, and advertising using collected marketing fees. Additional consulting or on-site assistance can be provided upon request for a fee. Storage Authority specifies vendors for property management system software, property access control software, and rental kiosk software. Storage Authority also makes the Development Dynamic Ease Series Guidebook available, provides web-based options for manuals and marketing materials, may send secret shoppers (for a fee) to facilities, and maintains a cloud-based system for franchisee communication and operational materials.
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
Hands-On
Territory Type
Exclusive
Staff Count
2
Territory Size Requirements
Storage Authority grants exclusive territories defined by a 3-mile radius around the facility location. In rural areas where a 3-mile radius contains fewer than 10,000 people, the territory is extended to a 5-mile radius around the location. For the Storage Authority Express model, the exclusive territory is a 1-mile radius around each of the up to three permitted locations.
Staffing Notes
Storage Authority expects franchisees to hire and pay at least one and a half employees, not including the franchisee themselves. The franchisee (or their designee) and one additional person are included in the initial training program. The franchise agreement requires the franchisee to either personally participate full-time in the business's direct operation or hire a competent, adequately trained manager. Any hired manager must be trained to Storage Authority's satisfaction and must sign a written confidentiality agreement, with prior approval from the franchisor required for any third-party manager.