1-800-GOT-JUNK? | Junk Removal Prices, Fees, and Reviews (2024)
This article is based on its 2022 FDD.
1-800-GOT-JUNK? is a franchise for qualified candidates in the United States for the operation of retail junk removal in the Home Services industry. Brian Scudamore, the founder and CEO, developed a unique method for operating and franchising junk removal businesses (the “System”). The System includes proprietary software, brand development, training, marketing programs and access to the exclusive service of the call center and online booking system. In this article, we are going to make a 1-800-GOT-JUNK prices review, fees, and much more.
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What Is 1-800-GOT-JUNK?
Brian Scudamore founded the Rubbish Boys in 1993, which is a Canadian-incorporated company. 1-800-GOT-JUNK? is a subsidiary company that offers franchise locations in the United States. Mr. Scudamore formed 1-800-GOT-JUNK? LLC in October 1998 and has been its Chief Executive Officer since formation. Mr. Scudamore is also the Chief Executive Officer of O2E Brands which encompasses 1-800-GOT-JUNK? Shack Shine, and WOW 1 DAY PAINTING.
Brian Scudamore has successfully scaled this innovative junk removal services to (currently) 130 franchises across the United States.
Initial Franchise Fee
$56,000 – $97,500
This estimate represents the initial franchise fee of $8,125 per subterritory, with the low estimate being a franchise with eight subterritories and the high estimate being a franchise with 12 subterritories. If your franchise is more than 12 subterritories, you will pay $8,125 for each additional subterritory.
1 800 GOT JUNK? Prices Review
The total investment necessary to begin operation of a 1-800-GOT-JUNK? franchised business ranges from $241,800 – $289,680.
Additional Cost Breakdown:
According to our 1-800-GOT-JUNK prices review, below is a list of the costs that factor into the range of startup costs from $162,800 – $245,250.
- Initial Franchise Fee: $56,000 – $97,500
- Initial Marketing Expense: $25,000
- Computer Hardware and Software: $1,500 – $4,000
- Miscellaneous Opening Costs: $5,000 – $15,000
- Equipment (Vehicle Lease with dump body): $0 – $10,000
- Real Estate / Rent: $1,200 – $5,000
- Local Marketing: $3,600
- Insurance: $2,000 – $8,000
- Training Expense: $1,500 – $4,150
- Additional Funds: $58,000 – $73,000
Ongoing Franchise Costs and Fees:
Royalty: 8% of Gross Revenues semi-monthly-
-Minimum royalty of $1,200 – $4,000 per subterritory per calendar year depending on when the franchise was opened-
Sales Center, Marketing & Technology Fee: 8% of Gross revenue
Local Advertising Payment
The franchisee will expend an amount that is equal to 8% of its Gross Revenue in each quarter of your fiscal year on local marketing and promotions within the Territory.
During the first-year, franchisees need to spend no less than $3,600 per quarter on marketing.
1-800-GOT-JUNK? Sales Figures:
Average Gross Sales of 1-800-GOT-JUNK? Franchises For The Twelve Months Ending December 31, 2021
| US Franchisees of 1-800-GOT-JUNK? LLC | Total Franchisees | Average Gross Revenue per Franchisee | # and % of Franchisees at or above Average per Franchisee | Median Gross Revenue per Franchisee | Highest/Lowest Gross Revenue in Range | Average Gross Revenue per Subterritory | # and % of Franchisees at or above Average per Subterritory | Median Gross Revenue per Subterritory | Highest/Lowest Gross Revenue per Subterritory in Range | |
|---|---|---|---|---|---|---|---|---|---|---|
| Franchisees operating for more than one day, but less than 12 months | 2 | $125,466 | 1/50% | $125,466 | $150,974/99,958 | $20,882 | 1/50% | $20,882 | $24,990/16,775 | |
| Franchisees operating for more than 12 months, but less than 24 months | 1 | $857,030 | 1/100% | $857,030 | $857,030 | $95,226 | 1/100% | $95,226 | $95,226 | |
| Franchisees operating for more than 24 months, but less than 36 months | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |
| Franchisees operating for more than 36 months, but less than 48 months | 2 | $2,526,529 | 1/50% | $2,526,529 | $4,558,092/494,966 | $96,016 | 1/50% | $96,016 | $147,035/44,997 | |
| Franchisees operating for more than 48 months, but less than 60 months | 7 | $2,539,624 | 3/43% | $2,515,547 | $4,031,295/1,112,666 | $154,654 | 3/43% | $137,589 | $274,714/79,476 | |
| Franchisees operating for more than 60 months, but less than 72 months | 1 | $1,501,280 | 1/100% | $1,501,280 | $1,501,280 | $150,128 | 1/100% | $150,128 | $150,128 | |
| Franchisees operating for more than 72 months | 120 | $3,381,443 | 44/37% | $2,710,441 | $11,881,859/446,585/td> | $156,834 | 51/43% | $135,224 | $389,003/45,571 |
Total Gross revenue of 1-800-GOT-JUNK? Franchisees for the 12 Months Ending December 31, 2021 (in dollars)
| Country | United States | Canada | Australia |
|---|---|---|---|
| Total # of Franchisees Reported | 133 | 20 | 6 |
| # and % Making Total Revenue Over $1,000,000 | 115/86% | 12/60% | 5/83% |
| # and % Making Total Revenue of $750,001 to $1,000,000 | 6/5% | 3/15% | 1/17% |
| # and % Making Total Revenue of $500,001 to $750,000 | 7/5% | 5/25% | 0/0% |
| # and % Making Total Revenue of $500,000 or Less | 5/4% | 0/0% | 0/0% |
Key Highlights from Sales Figures:
Average Gross Revenue for companies between 1 and 2 years of business: $857,030
Average Gross Revenue for companies after 6 years of business: $3,381,443
These sales figures indicate steady revenue streams during the operation of the franchisee term agreement of 5 years and indicate a majority of franchisees renew their contract after it has terminated.
These numbers vary depending on location, expertise, marketing strategies, and other factors that may affect your overall revenue.
1-800-GOT-JUNK? Income Statement
Statement of Income
| (in thousands) | For the Period Ended March 31, 2022 | |
|---|---|---|
| Mar-2022 | ||
| Revenues | ||
| Royalty Fees | $7,664,783 | |
| Sales Centre Fees | 5,748,996 | |
| Ad Fund Fees | 1,915,775 | |
| Initial Franchise Fees | 89,928 | |
| Other Revenue | 24,546 | |
| 15,444,028 | ||
| Expenses | ||
| Sales Centre | 5,748,996 | |
| Licensing Fees | 4,043,687 | |
| Management and Administration Fees | 3,577,331 | |
| Ad Fund | 1,915,775 | |
| Field Operations | 113,259 | |
| Accounting and Legal | 3,175 | |
| State Franchise Tax | 8,099 | |
| Bad Debts | 3,533 | |
| Bank Charges | 9,409 | |
| 15,508,960 | ||
| Loss before Income Taxes | (64,932) | |
| Income Tax Expense | ||
| Income Tax – Current | – | |
| Income Tax – Deferred | – | |
| Net Loss | $(64,932) | |
The company in 2021 posted a negative net income, which indicates the company might not be liquid and has a relatively low probability of paying off its debts, paying dividends to shareholders, and paying its operating expenses. Payments could also be going to a related entity or be income just reinvested in the brand.
Competition:
1-800-GOT-JUNK? does not grant exclusive territory as you may face competition from other franchisees, from outlets that they own, or from other local or national junk removal services such as College Hunks Hauling Junk.
Conclusion:
1-800-GOT-JUNK? is a well-established that has been around since 1998 and has shown strong revenue figures from their franchisees. Brian Scudamore has run three successful franchise companies and 1-800-GOT-JUNK? is their premier national business!
While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the home services industry.
