Poop 911: Waste Removal Service Franchise (2021 FDD Review)
Written by: Patrick Findaro
This article is based on its 2021 FDD and the video above, from Vetted Biz Youtube Channel
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What is Poop 911?
Poop 911 operates a pet waste removal service business featuring residential, commercial, community & park services. Is a franchise concept in the Cleaning and Maintenance industry.
Poop 911 is a Texas corporation incorporated on November 15, 2005 under the name “Hounds Mounds, Inc.” Geoffrey Bodle has been the Chairman and President since incorporation. The company has 62 franchise units across numerous states and 1 corporate owned location. Moreover, the company projected 8 new openings for the 2020 year.
The simplicity of the business model and the need for minimal equipment allows for franchisees to begin the business one to two weeks after signing your Franchise Agreement.
Initial Franchise Fee
What is great about Poop 911 is that it has initial fee of zero dollars. This helps a franchisee to see profits in the short term compared to other cleaning and maintenance industries where a profit may not be returned until 12 to 18 months after starting the business.
Franchise Cost
The total investment necessary to begin operation of a Poop 911 franchise business ranges from $3,620 to $25,970.
In starting a Poop 911 franchise you are granted a territory that has a minimum of population of 250,000 people. The company requires a minimum of one vehicle for every 125 enrolled customers in your Territory.
The franchise provides extensive marketing through the web site, a central call and scheduling center and a website for the franchise system. In addition, appointments for service are made into the system and routing and customer billing provided through Poop 911 proprietary automated BARCS system.
Additional Cost Breakdown:
As can be seen, below is a list of the costs that factor in the range of startup costs from $3,620 to $25,970.
| Rent | $0 – $1000 |
| Opening Advertising | $100 – $200 / month |
| Internal Advertising via Partner Websites | $45 / month |
| Office furniture, computers, GPS, phone | $0 – $1000 |
| Liability Insurance | $300 – $525 |
| Vehicle Wrap / Advertising Signage | $1,000 – $2,500 |
| Vehicle (unless already owned) | $0 – $15,000 |
| Training Costs / Travel | $325 – $1,000 |
| Professional Fees | $500 – $2,000 |
| Pet Waste Equipment: | $100 – $200 |
| Additional Funds (3 months) | $1250 – $2500 |
Ongoing Franchise Costs and Fees:
Continuing Royalty: 23% of Gross Revenues
According to the analysis, customers pay and subscribe for the service through the Poop 911 website and the company will pay you net proceeds (after royalties and all adjustments and deductions authorized in the Franchise Agreement). This is due to the amounts received from your customers twice a month, 6th and 21st day of each month.
Local Advertising Payment
It does not require or provide advertising in any media, nor do they provide an advertising program.
In addition, Poop 911 initially provides business cards, t-shirts, promotional brochures and media as part of your franchise package.
Poop 911 Sales Figures
it is important to mention that Poop 911 does not disclose financials according to item 19.
On the other hand, revenues received from all franchisees in 2019 and 2018 totaled $10,272,235 and $7,725,811, respectively per the income statement in the 2021 FDD. Payments to franchisees in 2019 and 2018 totaled $8,564,557 and $6,218,989, respectively.
In 2018 there were 60 franchise locations and in 2019 there were 62 franchise locations:
To calculate the average franchisee revenue (net of the 23% royalty), we divided payments to the franchisees by the number of locations.
Revenues
2018 estimated Average Revenue (60): $103,649
2019 estimated Average Revenue (62): $138,138
This numbers indicate a gross increase year of year from 2018 to 2019 of 33%.
Keep in mind, that the Average Revenue (again net of 23% royalty) can be skewed low provided recently opened locations are also included. For example, a location that opened in December, 2019 with only $700 of revenue for 2019 will weigh down the average number.
Hound Mounds, INC. Income Statement:
Hound Mounds, Inc. dba Poop 911 Statements of Income and Retained Earnings Years Ended December 31, 2019 and 2018
| 2019 | 2018 | |
|---|---|---|
| Gross Revenue | $10,272,235 | $7,725,811 |
| Outlet returns | (8,564,557) | (6,218,989) |
| Net Revenue | 1,707,678 | 1,506,822 |
| Operating Expenses: | ||
| General and administrative | 733,308 | 716,365 |
| Salaries and wages – officer | 145,500 | 120,500 |
| Salaries and wages | 107,900 | |
| Selling | 89,646 | 78,396 |
| Depreciation and amortization | 139,284 | 64,522 |
| Total Operating Expenses | 1,215,638 | 979,783 |
| Operating income | 492,040 | 527,039 |
| Other Income (Expense) | ||
| Interest Expense | (147,659) | (95,402) |
| Total Other Income (Expense) | (147,659) | (95,402) |
| Net Income | $344,381 | $431,637 |
| Beginning Retailed Earnings (Deficit) | (241,450) | (91,791) |
| Distributions | (265,511) | (581,297) |
| Ending Retained Earning (Deficit) | (162,580) | (241,450) |
As a matter of fact, the company has seen positive revenue growth from 2018 to 2019 and has kept a consistent ratio of operating expenses compared to net revenue. This provides insight about the overall health of the Franchisor company and their ability to maintain good margins for revenue for franchisees.
Competition
While this is a relatively new industry, there is considerable competition for pet waste removal services, because It varies depending on your location in the country and upon the particular market you are in. You should expect competition with national franchise systems, regional companies and a variety of local independent operators that offer pet waste removal services.
Closing
In conclusion, If you are looking for a business that has low start-up costs and an initial fee of zero dollars, with profit in the short term, Poop 911 could be for you. The company requires little training, no office, and allows freedom to scale your customer base with the support of an organized and a well-established Poop 911 business model.
However, make sure to check out other businesses offered on Vetted Biz and in the cleaning and maintenance industry.
Content and Analysis provided by Brooks Gammill (Data Analyst Intern at Vetted Biz).
