CASE 4

Two Men and a Truck/ International, Inc.

Exceeding Customers' Expectations

BACKGROUND

panelist suggested she franchise her little company,

Sheets decided to consult with an attorney.

In 2007. TWO MEN AND A TRUCK/INTERNA-

In 1989, Sheets awarded the first location

TIONAL, Inc., was recognized on Entrepreneur outside of Michigan to her daughter, Melanie magazine's list of Top 500 (it was ranked at Bergeron. The office was in Atlanta, Georgia. number 171), named as one of America's top global

When the company reached 39 franchises, Sheets

franchises. listed on Franchise Business Review's asked Bergeron to assume the role of company

"Franchise 50," and selected as one of the top president while she pursued a seat in the Michigan 25 franchises for Hispanics by the National Minority

State Senate. Bergeron is now chair of the board.

Franchising Initiative. According to the company's TWO MEN AND A TRUCK's long track record website (www.twomenandatruck.com), it is the first of aggressive growth continues under Bergeron's and largest local moving franchise system in the

progressive leadership and keen business strate

United States and offers a full range of home and gies. Her accomplishments have been

showcased

Dusiness moving services.

on the cover of Franchising World magazine and in numerous other publications, including Franchise Times. Brig and Jon Sorber returned to their Lan-

HISTORY

sing roots in the mid-1990s to team up with their

TWO MEN AND A TRUCK started in the early mom and older sister. Brig is now the president

and chief executive officer, while Jon serves as

1980s as a way for two brothers to make extra executive vice president. The first truck that Sheets

money while they were in high school. Now, over bought in 1985 has now multiplied into a fleet of 20 years later, the company has grown to more than more than 1,200 trucks.

200 locations worldwide.

Brothers Brig Sorber and Jon Sorber started

Customers benefit from having trained, uni-

formed movers who are insured and bonded to

moving people in the Lansing, Michigan, area handle any home move and business moving tasks.

using an old pickup truck. They had their mom,

The company has come a long way and logged a

Mary Ellen Sheets, develop a logo to put in a lot of miles since Sheets sketched the first "stick weekly community newspaper. That stick men logo men." TWO MEN AND A TRUCK continues to still rests on every truck, sign, and advertisement for the company. After the brothers left for college, pave the way for future growth and innovation, Sheets continued to field calls for moving services while remaining focused on exceeding customers'

expectations.

while she also worked a full-time data-processing

The firm now has more than 200 locations oper-

job with the state of Michigan. In 1985, she decided to make things official by purchasing a 14-foot ating worldwide, including 32 U.S. states, Canada,

and Ireland. In 2010 alone, with 1,300 trucks cur-

truck for $350 and hiring a pair of movers. That $350 is the only capital Sheets has ever invested in

rently on the road, the system completed 317,841 moves. The company reached the milestone of

the company. Her experience with data analysis, 2,000,000 moves in 2005.

combined with her commitment to customer ser. vice, earned her a spot on a 1988 graduate business

panel at Michigan State University. When a fellow FRANCHISING

Source: From Longenecker/Petty/Palich/Hoy, Small Business Manage ment, 17E. 2014 Cengage Learning.

Franchise territories are based on population, generally between 250,000 and 420,000 people per

NIFI marketing area. The initial franchise fee is $45,000, facility. Students must be able to fully pack the back or $85,000 if the franchisee has previously oper- of the truck with the items from the home.

ated in the area. Total start-up costs (including

Many other tools are available to franchisees,

facility, trucks, equipment, and other expenses) including detailed monthly reports, newsletters, range from $158,000 to $460,910. Franchisees extranet, a system-wide annual meeting, a toll-free pay a royalty of 6 percent of gross revenue, plus support line, a tradeshow booth, a complete line of

1 percent for advertising.

TWO MEN AND A TRUCK branded clothing and

TWO MEN AND A TRUCK has always focused professional marketing materials, and a system-on training its employees with the latest techniques wide purchasing system.

and the best equipment available-and on treating everyone as they would want their grandmother treated, otherwise known as THE GRANDMA RULE. Before a new franchisee can open a location, he or she must attend a two-week training course in Lansing, Michigan, conducted by home office staff at STICK MEN UNIVERSITY. There, franchisees are taught by subject-matter experts about the computer systems, how to market their new business, and how to hire, manage, and lead their teams. (Throughout the year, STICK MEN UNIVERSITY offers online classes that cover everything from marketing tactics to leadership to making accurate estimates. Several instructor-led courses are also available online.)

Franchisees also work in a two-story home built inside the TWO MEN AND A TRUCK headquar-ters. During this portion of the training, students are taught how to maneuver, wrap, pack, and load items such as a grand piano, a china cabinet filled with breakables, glass tables, a washer and dryer, and a flat-screen television. Students are expected to be able to recognize obstacles and empty the house as quickly and efficiently as possible. A truck box, built to scale, is also located in the training

Questions

1. Limiting sales territories is one of the

common restrictions that franchise contracts

impose on franchisees. Do an Internet search for TWO MEN AND A TRUCK franchises in Toronto area. How many are there?

Does this number reflect the company's popu-lation requirements?

2. Which moving companies compete with TWO

MEN AND A TRUCK in your area? Are there differences in their rates of success? How could you measure those differences? Are there differences in their advertising? In their rates for items such as boxes and packing sup-plies? Which companies have an advantage, and whv?

3. Suppose that after owning a TWO MEN AND A TRUCK franchise for five years, you decided

to go out on your own with a new moving company called Four Movers. What kinds of legal issues would you face?

Answer all the case study questions.

Analyze the case including identifying issues, situation analysis and conclusions in the form of memo

need brief answers of all 3 question