Crushr Franchise in 2024: Costs, Fee & FDD
Explore the potential of investing in a unique franchise opportunity that offers innovative solutions in a growing industry. Learn how this business model can provide exciting possibilities for entrepreneurs looking to make an impact.
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Crushr is an innovative franchise that has carved out a niche in the waste management industry. Founded by Scott Dennison in 2013, the company was born out of a desire to revolutionize waste handling by introducing mobile trash compacting services. Dennison’s vision was simple: reduce waste volume, cut costs for businesses, and make the process as eco-friendly as possible. Crushr’s significance in the industry lies in its ability to offer a service that drastically reduces the frequency of dumpster pickups, ultimately saving businesses both time and money.
The core product of Crushr is its mobile trash compacting service, which is designed to crush up to 80% of the volume in dumpsters, cutting down waste-hauling costs. Ancillary services include recycling and waste management consulting, helping businesses streamline their waste processes. Their core customers are typically commercial entities with large waste production—think retail stores, warehouses, construction sites, and apartment complexes. Crushr’s target market is growing as more industries seek cost-efficient and sustainable waste solutions.
Currently, Crushr has expanded its footprint across the U.S. with over 40 franchise locations. The franchise has shown strong growth in the waste management industry, serving thousands of businesses daily. While the company primarily operates within the U.S., the potential for international expansion exists due to the universal need for waste reduction and efficiency in commercial spaces.
One of the highlights of Crushr’s franchise model is its comprehensive support system. Franchisees are offered extensive training, covering everything from business operations and marketing strategies to equipment use. On top of that, Crushr provides ongoing support in the form of marketing materials, regular business check-ins, and access to a network of experienced franchisees. This strong support system ensures that new franchisees can hit the ground running with a proven model for success.
Crushr Franchise Insights
- Crushr offers a unique service that helps businesses save money while reducing their environmental footprint, making it an appealing option for companies looking to improve sustainability.
- The franchise’s mobile compacting technology is simple yet highly effective, streamlining waste management processes without requiring heavy infrastructure or large teams.
- As a franchisee, you benefit from a strong support system that includes everything from marketing guidance to ongoing operational advice, ensuring you’re never left to navigate challenges on your own.
- Crushr’s focus on reducing waste and improving efficiency positions it well within the growing movement toward eco-friendly business solutions, which is becoming increasingly important across industries.
Crushr Franchise Key indicators
Growth YOY (%)
39%
vs industry 4%
Total U.S. Franchised Units
82
3-Year Failure Rate
2%
vs industry 13%
Sales-to-Investment ratio
0.7:1
How much does it cost to open a Crushr franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Crushr franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Crushr franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Crushr below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Onboarding Training Fee | $4,800 | $4,800 |
| Local Area Advertising Requirement (3 months) | $1,500 | $1,500 |
| Rent (3 months) | $300 | $1,500 |
| Utility Security Deposits | $0 | $500 |
| Installed Vehicle | $58,000 | $260,000 |
| Installed Vehicle Transportation | $2,500 | $6,000 |
| Technology Fee (3 months) | $1,500 | $1,500 |
| Computer and Office Equipment and Supplies | $100 | $1,000 |
| Travel Expense for Initial Training | $1,500 | $4,000 |
| Insurance (3 months) | $2,500 | $7,500 |
| Professional Fees | $2,500 | $5,000 |
| Permits and Licenses | $250 | $1,000 |
| Additional Funds (3 months) | $25,000 | $35,000 |
| Total Investment | $157,575 | $418,189 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Crushr franchise, the required capital involves both the initial investment costs and a net worth requirement set by the franchise. Let’s take a closer look below:
- Initial Investment The total estimated initial investment typically ranges from $158,000 to $418,000. This includes startup costs such as the franchise fee, the cost of the compacting truck, initial marketing, and funds for the first few months of operations. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Crushr generally requires franchisees to have a minimum of $100,000 in liquid assets. This ensures the franchisee has the necessary funds to manage early operational expenses and any unexpected costs during the startup phase.
- Net Worth Requirement While the specific net worth requirement for Crushr may vary, it’s typically recommended that franchisees have a net worth of at least $350,000 to $500,000. This accounts for the total value of your assets, including real estate and investments, minus liabilities.
How much does a Crushr franchise owner make?
Calculating the salary of a Crushr franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Crushr franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Crushr Revenue & Gross Sales
Based on the most recent analysis, Crushr franchises have a median gross sales of $207,148, highlighting the strong demand for its waste compacting services. This performance reflects the franchise’s ability to generate steady revenue by offering businesses cost-saving and eco-friendly solutions.
Which key factors impact the average revenue performance of Crushr franchisees?
The performance of U.S. Crushr franchisee median gross sales in recent years was likely influenced by several key factors. First, the growing emphasis on sustainability and cost-efficiency has driven demand for waste management solutions that help businesses reduce waste and lower expenses, positioning Crushr as a cost-effective option. Additionally, many businesses have been seeking ways to optimize operations post-pandemic, leading to an increased need for services like Crushr’s mobile compacting technology. Economic recovery and rising costs in waste disposal could also have encouraged businesses to adopt solutions that reduce waste hauling expenses. Lastly, the continued expansion of the franchise network has likely contributed to increased brand recognition and customer adoption, positively impacting sales.
Crushr Franchise Operational Costs
Operational costs for a franchise like Crushr are the ongoing expenses required to manage the day-to-day business and ensure smooth operations. For a Crushr franchise, operational costs include:
- Equipment Maintenance and Repairs Regular servicing and repair of the mobile compacting truck, which is essential to ensure continuous functionality and avoid any costly downtime.
- Fuel Costs As the business model involves traveling to customer locations, fuel is a significant recurring expense that must be managed efficiently.
- Labor Costs If you hire employees, you’ll need to consider wages, benefits, and any additional staff expenses for those assisting with daily operations or customer management.
- Marketing and Local Advertising Ongoing efforts to promote the business in your territory are important for growing and maintaining your customer base. These expenses include both digital and traditional marketing efforts.
- Insurance Comprehensive insurance policies, including vehicle insurance, liability insurance, and general business insurance, are crucial for protecting the franchise and its operations.
- Waste Disposal Fees While Crushr helps reduce waste, you may still incur disposal fees for any excess materials or recycling, depending on local regulations.
- Technology and Software Costs Expenses related to maintaining any software systems, customer management tools, or route planning technology that assist with operations and efficiency.
Carefully managing these costs is key to ensuring the long-term profitability of your Crushr franchise.
Crushr Franchise Fees
When opening a Crushr franchise, there are several ongoing fees that franchisees should be aware of. These fees are essential for maintaining franchise rights and ensuring continued support from the franchisor. Below is a breakdown of the key ongoing costs:
- Royalty or Minimum Continuing Fee The ongoing royalty fee is the greater of 8% of gross sales or a minimum continuing fee. For the first 6 months after the delivery of the vehicle, no fees are required. After that, it’s $500 per month for months 7 to 12, and $1,000 per month starting from month 13 onwards.
- Additional Fees Beyond the outlined royalty or minimum continuing fees, there may be additional costs depending on operational needs and local regulations, such as waste disposal fees, vehicle maintenance, and insurance.
It’s essential to carefully review all the fee structures and budget accordingly to ensure your Crushr franchise remains financially sound while adhering to the franchise agreement.
Crushr Franchise Earnings
When analyzing potential earnings for a Crushr franchise, the median gross sales are reported at $207,148. This figure represents the average revenue a franchise can expect, but actual earnings can vary depending on the location, market demand, and the franchisee’s operational efficiency. For an owner-operator, managing the business directly, the estimated earnings are $37,000 based on industry operating profit margins.
This owner-operator model allows franchisees to maximize profitability by reducing labor costs and maintaining tight control over operations. However, these earnings reflect a hands-on approach and may differ based on individual performance, regional factors, and market conditions. Careful management and strategic planning are essential to growing revenue and increasing profitability in the long term.
How to Open a Crushr Franchise
Becoming a Crushr franchisee involves several key steps that guide you from initial inquiry to launching your business operations. Here’s a breakdown of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Initial Consultation After submitting the inquiry, you’ll have a consultation with a franchise representative. This step allows you to learn more about the business model, ask questions, and determine if the franchise is the right fit for you.
- Discovery Day If the FDD looks good to you, you’ll be invited to a Discovery Day. During this event, you’ll visit the corporate office, meet the leadership team, and see the business operations in action. It’s an opportunity to get a real sense of what it’s like to be a part of the Crushr franchise family.
- Franchise Agreement and Financing After Discovery Day, if you decide to proceed, you’ll sign the franchise agreement. At this point, you’ll also secure financing, if needed, to cover the initial investment and startup costs.
- Training and Vehicle Delivery Once the paperwork is complete, you’ll undergo comprehensive training. This includes learning the ins and outs of the mobile compacting business, marketing strategies, and operational procedures. Crushr will also deliver your specialized compacting truck, which is crucial to your business.
- Site Preparation and Launch After training, you’ll set up your territory, secure any necessary licenses or permits, and prepare for your business launch. Crushr provides ongoing support to help you get up and running, including marketing materials and operational guidance.
- Start of Operations Finally, you’ll begin offering services in your designated territory, backed by Crushr’s support network and proven business model.
Pros & Cons
Pros
Low Overhead: Crushr’s business model requires minimal staff and equipment, making it easier to manage and reducing operating costs.
Eco-Friendly Niche: The focus on sustainability and reducing waste aligns with growing trends for eco-friendly business practices, giving you a competitive advantage in the market.
Scalable Model: With only one truck needed to start, you can easily scale up as demand grows in your territory, allowing for potential expansion.
Strong Support System: Crushr provides extensive initial training and ongoing support, ensuring franchisees are well-prepared to succeed from day one.
High Demand Across Industries: With diverse industries like retail, construction, and warehousing as core clients, you have a broad customer base to tap into.
Cons
Capital Intensive Start-Up: The upfront investment in the specialized vehicle and equipment can be significant, especially if you need financing.
Dependence on Vehicle Performance: As the business revolves around the compacting truck, any mechanical issues or downtime can directly impact your operations and revenue.
Territory Limits: Franchisees are assigned specific territories, which can limit expansion opportunities without additional agreements for new areas.
Niche Service: While demand for waste management is stable, it is a specialized service, meaning growth may depend on local market needs and competition.
