Since the middle of 1950?when the first commercial self storage companies began to appear in earnest, the profitability and steady customer growth of these businesses have made them ideal investment opportunities for those individuals who wish to increase their personal wealth; however, while locally owned and operated businesses offer similar profit generating capabilities, they do not offer the vast resources of a larger self storage franchise. These resources include huge fiscal reservoirs that can be used to advertise the national franchise and the local affiliated business, complicated and diversified marketing schemes, legal and security resources, and financing opportunities.



All of these qualities make buying into an established national or regional storage business franchise a great option for those investors who have the capital for the initial investment fees and do not want the risk of running a business without a very large financial net to help with the rough spots associated with any business operation.

The most important reason that many investors choose to buy into a large national self storage franchise is the availability of company financing. In order for an individual investor to be able to afford to purchase and operate an independent facility or business, huge amounts of capital must first be raised. This capital can come from multiple sources including personal financial accounts, other investors, or loans from lending institutions. However, not every investor has the means or wherewithal to put together such huge amounts of capital. A self storage franchise can offer a solution to this financial predicament by offering a vast array of financing options for the small time investor. These financing options can be very forgiving and can offer much better terms than a lending institution or bank.

Another reason that makes a franchise option more attractive than a private business is the amount of money a franchise can devote to advertising and marketing. For many small business owners advertising is an expense that can be cut in order to save money. However, by eliminating the advertising costs, a small business owner may cut his potential clientele base and limit his or her ultimate profit margin. However, by investing in a large national or regional chain, the small time investor can have access to a complicated advertising scheme that the national chain uses to generate business and name recognition on a local level.

Franchises also initiate complicated marketing schemes that can include magazine advertisements, classified listings, television commercials, billboard advertising, and radio spots. All of these means of marketing would be out of reach for most small business owners. However, since the success and profitability of the parent company is dependent on the success of the local franchises, the company does not hesitate to foot the bill for expensive marketing or advertizing campaigns that are typically out of reach for independent owners.

Finally, by buying into a national self storage franchise, a local investor can tap into the vast resources associated with security options and legal options. Most large chains have lawyers and attorneys on hand to handle complicated legal matters that can arise from the nature of the self storage business. They can also offer a financial means to maintain the proper security needed to run a successful storage business.

All of these features make buying into a large self storage chain more attractive than buying a maintaining a private business.