Pods began as a sole proprietorship and relied on venture capital for its growth.The company was not favorably viewed as an investment for traditional bank debt financing, given the capital intensive nature of the business. The collateral (storage containers) did not have a secondary market in case of default. The company evolved to a franchise model with operations in the United States, Canada, and Australia. Smaller cities or markets are franchised where larger cities such as Chicago are reserved for corporate operations.
The company enjoys an innovator advantage in the moving and storage industry. Today, the company has grown to 132 franchise markets. The requirements for a Pods franchise include the $250,000 franchise fee providing exclusivity of the territory and a substantial investment in containers, averaging $2,500 per storage unit.
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