1-800-GOT-JUNK Franchise Costs + Fees + FDD (Opportunities 2022)
1800 got junk franchise cost comes to mind first when one is considering a 1-800-Got-Junk franchise. Do you wish to start a 1-800-Got-Junk franchise or do you just want to know about the 1800 got junk franchise cost? Not to worry as we shall discuss 1-800-Got-Junk franchise cost, fees, and opportunities in this article.
1-800-GOT-JUNK Franchise Cost
A minimum of $90,000 in liquid capital is required for franchisees. The initial franchise fee is $30,000, with a total investment ranging from $107,400 to $140,400. Each franchise’s profits are also subject to an ongoing royalty fee of 8%.
1-800-GOT-JUNK Franchise History
1-800-GOT-JUNK? was founded in Vancouver in 1989 because of Brian Scudamore’s conviction that he could move trash more efficiently than the current market.
Scudamore’s company quickly grew to where he had to leave college in order to keep up with the volume of work. Over the years, 1-800 -GOT-JUNK? has expanded to over 200 locations across North America and Australia.
The franchisor is 1-800-GOT-JUNK LLC. Under the name “1-800-GOT-JUNK?” the franchise owner offers businesses for the operation of retail waste removal businesses.
The system involves proprietary software, brand building, training, branding strategies, and access to the call center and online booking system’s exclusive service, as well as the trademark “1-800-GOT-JUNK?” and related marks.
1-800-GOT-JUNK provides an initial training course for the principal operator and any other director, officer, or investor of the entity as required by them, which must complete to the franchisor’s satisfaction.
The course teaches all aspects of the business working system and includes both in-class and on-the-job training.
All training takes place over the course of five business days at 1-800-GOT-JUNK?’s headquarters in Vancouver, British Columbia. Training starts at 8:00 AM and ends by 5:00 PM.
Before a business can start operations, in-field training with an existing franchise is required. It usually takes two to three business days. Within 180 days of the business’s launch, 1-800-GOT-JUNK will conduct a field visit to the franchisee’s location.
Franchisees must take part and must arrange for their principal operator and employees to attend periodic retraining, service training, capacity building, and other training classes as required by 1-800-GOT-JUNK, at the times and locations specified by 1-800-GOT-JUNK?.
1-800-GOT-JUNK Franchise Cost Agreement and Renewal
The initial start-up term is five years. Franchisees can renew for three additional five-year terms if all requirements are met.
In most cases, 1-800-GOT-JUNK? does not provide financing. However, they may, at their discretion, allow the franchisee to pay the preliminary franchise fee in monthly installments without interest if they repay on time.
1-800-GOT-JUNK? does not assure franchisees’ debts, leases, or other duties.
Although not required, the franchisor may, at its prerogative introduce franchisees to sources of finance, which if they meet their qualifications, may provide funding options for things needed as part of the initial investment.
Business owners are given a secure territory in which to run their businesses.
Prior to signing the Franchise Agreement, 1-800-GOT-JUNK? will develop geographic regions with populations of 62,500 to 75,000 based on the most recent published data from the United States Census Bureau.
The territory will be made up of at least eight of these areas, each of which will be considered a “sub-territory.” Franchisees will not be provided with an exclusive territory.
However, the non-exclusivity only applies to 1-800-GOT-JUNK? reserved rights in national accounts.
As long as franchisees adhere to the terms and conditions of their licensing agreement, 1-800-GOT-JUNK? will not permit another franchisee license to establish or run a 1-800-GOT-JUNK? business in the territory, subject to the franchisor’s rights regarding national accounts.
Obligations and Restrictions
1-800-GOT-JUNK? requires that the franchised business be directly supervised at all times by an individual who has at least a minimum number of beneficial shares (the “principal operator”).
The minimum shareholding requirement is usually 20%, but 1-800-GOT-JUNK? reserves the right to demand a different amount before signing the Franchise Agreement.
The franchised business demands the principal operator devote his or her full time and effort. Franchisees must run the franchised business and provide all services in line with the franchisor’s operating guidelines and standards.
Franchisees will sell only the goods and services accepted by the franchisor.
|Computer (Software and Hardware)||$1,500||$4,000|
|Local Marketing (3 Months)||$3,600||$3,600|
|FeeAmountRoyaltyThe first 1800 got junk franchise cost is 8% of gross revenues for royaltyMinimum RoyaltyRange from $1,200 for operations for a partial calendar year during the first year of working, to $4,000 per sub-territory per calendar year, based on the franchisee’s year of operation. Payment only if the franchisee’s real royalties paid in a year of operations for every sub-territory are less than the minimum total royalty.|
|Sales and Marketing Center Fee||8% of gross revenue.|
|Branding||Up to 5% of total gross revenue.|
|Training and RetrainingPayment for training or retraining is up to $100 per person per day, plus all other 1800 got junk franchise cost like personnel, including transportation, accommodation, and food.|
|Audit||Costs of an audit are roughly $1,500 to $5,000 but could be more, plus any shortfall in amounts owed to the franchisor.|
|Failure to Report||5% of the royalty, sales and marketing fees, and other amounts owed to 1-800-GOT-JUNK? during the period.|
|Interest in Late Payments||24% per year, or the maximum rate permitted by the state in which the franchisee is located.|
|Repayments for Declined Transfers Payments that were declined, plus all other 1800 got junk franchise cost because of such declination, along with any rational administrative fee that the franchisor may set regularly.|
|Annual Conference||$1,500 to $2,000 besides participation costs.|
|Management Support||Besides other expenses, the daily rate is close to $750.|
|Breach of Guidelines – Liquidated Damages||Depending on the severity of the breach, fines range from $25 to $2,000 USD.|
|Termination||Depends on the circumstance.|
|Indemnity||It is based on the amount of the loss for which the franchise owner is expected to compensate the franchisor.|
|Supplier Evaluation||Depending on the supplier and the cost of the products.|
Things to Know About the 1-800-GOT-JUNK Franchise
1-800-GOT-JUNK is a reputable junk removal service that has been in operation for over 25 years. They are insured and bonded, and their team of waste removal professionals is always ready to assist customers in getting rid of their unwanted junk.
1-800-GOT-JUNK provides a variety of services such as home cleanup, office trash removal, equipment removal, and much more.
In the United States and Canada, the company provides franchises for the operation of retail waste removal under the name “1-800-GOT-JUNK?”
Since then, 1-800-GOT-JUNK? has expanded into the world’s biggest junk removal business, with franchises in over 150 cities throughout the United States and Canada.
Other 1-800-GOT-JUNK? Business Opportunities
Although 1-800-GOT-JUNK? is a trash removal service, the company is committed to the environment. In order to reduce waste, 1-800-GOT-JUNK? guarantees that all “junk” that can be reused is given to charity or recycled.
The company is pleased to report that it has saved 1.5 billion pounds of garbage from landfills since its inception.
Only certain areas are available for franchising in order to prevent competition between 1-800-GOT-JUNK? franchises.
Franchisees of 1-800-GOT-JUNK? are expected to show commitment as well as have a background in management and sales/marketing.
Franchises are also expected to generate a minimum of 0,000 in revenue in their first year. Franchises that cannot meet this goal will receive a full refund.