True Value Rental franchise
2022 filing · March 28, 2022Fewer locations
True Value Rental at a glance
An equipment rental store renting tools, party supplies and machines. At the end of 2021 there were 200 True Value Rental locations in the US, all franchised.
The business
- Franchisor
- True Value Specialty Company, LLC
- The company that sells the franchises
- Franchising since
- 1997
- 25 years of selling franchises
- Franchisor based in
- Chicago, Illinois
- Typical size
- 5,000–10,000 sq ft
What you pay
- Cost to open
- $543K–$981K
- A new True Value Rental store
- Franchise fee
- $2,500
- Not charged when converting from another of the company's brands
- Royalty
- 1.5%–3%
- 1.5% to 3% of gross rental receipts, with monthly minimums and maximums, plus a $30 monthly brand fund contribution
- Brand fund
- Yes
- $30 a month
- Agreement length
- 5 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 200
- Franchised and company-owned
- Franchised
- 200
- Company-owned
- 0
- Change in 3 years
- −52
- Franchised locations, 2019–2021
- States
- 36
- Most in Florida, Massachusetts and New York
From True Value Specialty Company, LLC’s 2022 filing; revenue and net income from its audited financial statements, page 125; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
True Value Rental among all franchises with the same figure.
| Figure | True Value Rental | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $762,225 | Costs more than 78% of franchises |
| Franchise feePaid once, when you sign | $2,500 | Lower than 98% of franchises |
| US locationsFranchised and company-owned | 200 | More than 86% of franchises |
How much a True Value Rental franchise costs
Opening a new True Value Rental store costs an estimated $543,200 to $981,250. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are opening inventory ($400,000 to $700,000) and fixture, furniture and signage real property ($25,000 to $50,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $2,500 | ||
| Project Management and Design Fees | $250 | $4,000 | |
| Fixture, Furniture and Signage Real Property | $25,000 | $50,000 | |
| Opening Inventory | $400,000 | $700,000 | |
| Vehicle Lease-Buy | $450 | $25,000 | |
| Add-On Inventory | $30,000 | $40,000 | |
| Insurance | $10,000 | $20,000 | |
| Point of Sale System | $10,000 | $50,000 | |
| Deposits/Licenses | $5,000 | $10,000 | |
| Misc. Opening Costs | $20,000 | $30,000 | |
| Additional Funds- 3 months | $40,000 | $50,000 | |
| Total | $543,200 | $981,250 | |
Source: True Value Specialty Company, LLC, 2022 filing, page 15
True Value Rental franchise fee
The franchise fee is $2,500, not charged when converting from another of the company's brands. You pay it when you sign the franchise agreement.
Source: True Value Specialty Company, LLC, 2022 filing, page 12
Royalty and ongoing fees
| Royalty | 1.5% to 3% of gross rental receipts, with monthly minimums and maximums, plus a $30 monthly brand fund contribution. |
|---|---|
| Brand or marketing fund | $30 a month. |
| Point of Sale System | $10,000-$50,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: True Value Specialty Company, LLC, 2022 filing, page 12
Other fees as filed, from page 15. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures True Value Rental does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: True Value Specialty Company, LLC, 2022 filing, page 37
Growth and closures
Share of franchised locations, 2021 / 2019–2021. Typical means the median: half of brands are above it, half below.
| Measure | True Value Rental | Typical retail brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −7.4% / −21% | −0.4% / 0% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 8.3% / 23% | 5.4% / 18% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical retail brand is the median of the 114 brands in retail franchises with three years of counts.
How True Value Rental compares
Of the 302 retail franchises on this site, True Value Rental is the 274th cheapest to open and the 56th largest by number of locations.
| Figure | True Value Rental | Typical retail brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $543K | $198K | $222K |
| Cost to open, high end | $981K | $425K | $477K |
| Franchise fee | $3K | $35K | $40K |
| US locations | 200 | 38 | 21 |
| Shares earnings figures | No | 187 of 302 | 2,147 of 3,352 |
Typical is the median across the 302 brands in retail franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 234 (−18) | 0 | +1 | −19 |
| 2020 | 216 (−18) | 0 | +4 | −22 |
| 2021 | 200 (−16) | 0 | +2 | −18 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: True Value Specialty Company, LLC, 2022 filing, page 38
Where True Value Rental locations are
At the end of 2021, True Value Rental had franchised locations in 36 states. The most are in Florida, Massachusetts and New York.
- Florida20
- Massachusetts19
- New York17
- North Carolina13
- Michigan11
- Pennsylvania11
| State | Franchised |
|---|---|
| Florida | 20 |
| Massachusetts | 19 |
| New York | 17 |
| North Carolina | 13 |
| Michigan | 11 |
| Pennsylvania | 11 |
| Ohio | 10 |
| Connecticut | 9 |
| Illinois | 9 |
| New Jersey | 9 |
All 36 states
Source: True Value Specialty Company, LLC, 2022 filing, page 39
Who owns True Value Rental?
True Value Rental franchises are sold by True Value Specialty Company, LLC. It is a subsidiary of True Value Company.
From True Value Specialty Company, LLC’s 2022 filing, page 9.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: True Value Specialty Company, LLC, 2022 filing, litigation on page 11, bankruptcy on page 11
True Value Rental filings
The figures on this page come from True Value Specialty Company, LLC’s 2022 filing, issued March 28, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | March 28, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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