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.
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 innovates junk removal services to currently 130 franchises across the United States.
This figure includes the Sub territory Initial Fee of $25,000 for the first Sub territory, plus $15,000 for each of the nine additional Sub territories. The normal size of a new franchise has 10 sub territories.
The total investment necessary to begin operation of a 1-800-GOT-JUNK? franchised business ranges from $241,800 – $289,680.
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 $241,800 – $289,680.
Royalty: 8% of Gross Revenues semi-monthly-
-Minimum royalty of $1,050 – $2,800 per sub territory per calendar year depending on when the franchise was opened-
Sales Center, Marketing & Technology Fee: 8% of Gross revenue
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 $3,600 per quarter on marketing.
|US Franchisees of 1-800-GOT-JUNK? LLC||Total Franchisees||Average Gross Sales (US$)||% of Franchisees at or above Average||Median Gross Sales||% of Franchisees at or above Median||Highest/Lowest Gross Sales in Range|
|Franchisees operating for more than one day, but less than 12 months||0||$0||0/0%||$0||0/0%||$0|
|Franchisees operating for more than 12 months but less than 24 months||8||$2,025,461||4/50%||$1,902,781||4/50%||$4,183,498/$333,367|
|Franchisees operating for more than 24 months, but less than 36 months||6||$1,825,015||3/50%||$1,958,019||4/50%||$4,183,498/$991,083|
|Franchisees operating for more than 36 months, but less than 48 months||1||$1,217,332||1/100%||$1,217,332||1/100%||$1,217,332|
|Franchisees operating for more than 48 months, but less than 60 months||4||$1,646,543||2/50%||$1,565,132||2/50%||$2,307,585/$1,148,324|
|Franchisees operating for more than 60 months, but less than 72 months||1||$2,522,623||1/100%||$2,522,623||1/100%||$2,522,623|
|Franchisees operating for more than 72 months||109||$2,522,623||34/31%||$1,776,811||55/50%||$12,711,087/$214,559|
|Country||United States (reported in USD)|
|Total # of Franchisees Reported||129|
|# and % Making Total Revenue Over $1,000,000||98/76%|
|# and % Making Total Revenue of $750,001 to $1,000,000||13/10%|
|# and % Making Total Revenue of $500,001 to $750,000||8/6%|
|# and % Making Total Revenue of $500,000 or Less||10/8%|
Average Gross Revenue for companies after 1 year of business (8): $2,025,461
Average Gross Revenue for companies after 6 years of business (109): $2,562,510
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.
|Sales Centre fees||$19,043,885||$—|
|Ad Fund fees||$6,348,212||$—|
|Management and administration fees||6||$11,256,266||$9,337,088|
|Accounting and legal||$114,970||$153,815|
|State franchise tax||$42,761||$42,763|
|Income before income taxes||$100,724||$8,909|
|Income tax expense (Recovery)||5|
The company in 2019 posted a positive net income, which indicates the company is liquid and has a higher probability of paying off its debts, paying dividends to shareholders, and paying its operating expenses.
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.
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.
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