Territory Planning – Operating in a viable territory

TWO MEN AND A TRUCK® has franchise opportunities available across the UK and as part of our franchise territory planning, we aim to ensure each of our new franchise owners is operating in a viable territory.

As moving is something that almost everyone does at one time or another, there is little difference in the volume of moves from one region to another across the country. Figures from the British Association of Removers (BAR) show that on average there are 2.6 million UK moves each year, generating revenues of close to a billion pounds (this includes residential moves, commercial moves, storage, packing services and materials).

Our franchise territories are calculated to have a population of 500,000+ and we work on an estimate of 10% of households moving annually. This is a conservative figure as independent figures from National Statistics UK quote 10-12% of households moving across the UK. So with an average of 2.5 people per household, a territory of 500,000 people equates to 200,000 households and therefore 20,000 moves annually.

Our territories are designated predominantly for marketing purposes only, as franchisees can move customers anywhere, even overseas.  However, the British Association of Removers (BAR) confirms 90% of all moves are local and regional with just 10% long distance.

Figures show that removal fees have very little variance across the country (even in parts of London where fees can be higher, the higher labour costs offset it) and the average fee for local and regional residential moves is £500.

So in our territories, with an estimated 20,000 households moving each year, around 18,000 (90%) will be moving locally and regionally.  If we aim for a 3% market share, that’s 540 moves with an average £500 fee, generating a potential turnover of £270,000 a year.  And this is only based on residential moves, when storage, commercial and other revenue streams are included turnover is increased.

There are similar revenue generating opportunities available for TWO MEN AND A TRUCK® franchise owners across all UK regions and by offering home and business moves we’ve experienced ongoing success, even through the recent recession.

As TWO MEN AND A TRUCK® continues to grow its share of the UK market the number of jobs (and therefore the turnover of our franchise owners) grows with it. We experienced a 13.7% increase in the average number of jobs per franchisee from 2014 to 2015 and we expect this trend to continue in 2016.

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