License Requirements for Storage Facilities

• Storage facilities may incorporate offered storage containers.containers in harbor image by JoLin from Fotolia.com
  
  A storage facility is a place of business that accepts either direct or indirect compensation in return for the space to store items. Self-storage facilities are establishments that may offer secure storage inside several different sized units for customers to store vehicles, merchandise, household goods and personal possessions. Some storage facilities may be required to maintain several different types of licenses, depending on the type of business and the type of storage offered to customers.
  
  

State License

• Check with your state offices for storage facility requirements.City Hall image by sival from Fotolia.com
  
  Each city, county and state maintains varying requirements when it comes to licensing and permits for storage facilities, but most states require that you file for and maintain a business license to legally conduct storage operations. A license application typically requires you supply your name and address, business name and contact information, Social Security number or employer identification name in addition to applicable license fees and other information required by your city or state. Additional information may include insurance information or storage site plans. If you want to start a storage facility for flammable or hazardous materials, you may need to file for permission from the city or state and become subject to state or city regulations regarding special insurance requirements and safety procedures.
  
  

Franchise License

• Licensed franchises may be subject to surprise inspections by the parent company.Bays for trucks and cars image by Alfonso de Tom??s from Fotolia.com
  
  Some storage facilities are established under a distinct name by independent entrepreneurs, while other storage facilities operate under the name of a national storage company. These facilities are known as franchise locations, and they are set up under a franchise license. Franchise license requirements may vary depending on the company, but common requirements include consistent payment of monthly or yearly franchise fees and contributions to advertising campaigns. To maintain a storage facility franchise license, franchisers typically require franchisees to maintain a specific insurance policy amount in addition to meeting requirements relating to storage facility maintenance and cleanliness, customer service and sales figures.
  
  

Customer License Agreement

• License agreements make the customer aware of storage facility regulations.Finger pointing to the words in agreement image by Dmitry Goygel-Sokol from Fotolia.com
  
  When a storage facility accepts goods to be stored on behalf of customers, the storage facility and the customer enter into a license agreement. The customer may be supplied with a contract that outlines the length of the lease term in addition to details regarding the value of the stored items, the storage rental charges and additional fees for late payment. The license agreement may stipulate whether the customer will pay for insurance to protect the value of the goods and what recourse the storage facility may take for an unpaid storage bill. Typically, both parties sign the agreement and both the facility and the customer receive a copy of the license agreement.