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1-800-GOT-JUNK? Franchise ProfileCleaning Franchises > Residential Cleaning |
What Are the Initial Investment Requirements for a 1-800-GOT-JUNK? Franchise?
To become a franchisee with 1-800-GOT-JUNK?, you should be prepared for an initial investment ranging from $168,800 to $258,150. This includes a franchise fee of $65,000. Additionally, you must have a net worth of at least $200,000 to $500,000 and sufficient cash reserves to cover the startup costs. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared to launch their business.
What Are the Ongoing Fees Associated with a 1-800-GOT-JUNK? Franchise?
Franchisees of 1-800-GOT-JUNK? are required to pay an 8% royalty fee on gross sales, along with an additional 8% marketing fee. These ongoing fees contribute to the overall operational costs and are essential for maintaining brand presence and support. It's important for potential franchisees to factor these expenses into their financial planning to ensure long-term profitability.
What Is the Average Revenue Potential for a 1-800-GOT-JUNK? Franchise?
The average annual revenue for a 1-800-GOT-JUNK? franchise unit is approximately $3,440,358, with a median revenue of $2,672,372. This substantial revenue potential highlights the franchise's strong market position. However, it’s essential to note that revenue can vary significantly, with the lowest annual revenue reported at $10,580 and the highest reaching $10,603,705. Understanding these figures can help franchisees set realistic financial goals.
What Is the Breakeven Timeline for a 1-800-GOT-JUNK? Franchise?
Franchisees can expect to reach breakeven within approximately 16 months of operation. This timeline reflects the franchise’s potential for rapid profitability, making it an attractive option for those looking to enter the junk removal industry. Achieving breakeven in this timeframe can provide franchisees with confidence in their investment and operational strategy.
1-800-GOT-JUNK? Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
1-800-GOT-JUNK? Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 133 | 136 | 149 |
| Net Change YoY | 3 | 13 | |
| Franchised Units | 128 | 133 | 133 |
| Net Change YoY | 5 | 0 | |
| Corporate Units | 5 | 8 | 16 |
| Net Change YoY | 3 | 8 |
Initial Investment
The investment required to start a 1-800-GOT-JUNK? franchise ranges from $168,800 to $258,150. This includes a franchise fee of $65,000, with additional costs for equipment, marketing, and operational expenses. Potential franchisees should be prepared for ongoing fees, including an 8% royalty and an 8% marketing fee based on gross sales.
Financial Performance
On average, a 1-800-GOT-JUNK? franchise generates annual revenue of approximately $3,440,358, with a median revenue of $2,672,372. The financial performance can vary significantly, with the lowest annual revenue reported at $10,580 and the highest reaching $10,603,705. Understanding these figures is crucial for evaluating potential profitability.
Breakeven and Payback
Franchisees can expect to reach breakeven within about 16 months of operation. This timeline is critical for investors, as it indicates how quickly they can start recouping their initial investment and begin generating profit.
Franchised and Corporate Units
As of 2023, there are 149 total units of 1-800-GOT-JUNK?, with 133 being franchised and 16 corporate-owned. This growth reflects the brand's increasing market presence, having expanded from 128 franchised units in 2021 to 133 in 2023.
Average Expenses
Annual running expenses for a typical 1-800-GOT-JUNK? franchise total approximately $168,825. Key costs include real estate/rent, local marketing, insurance, and salaries. Understanding these expenses is essential for effective budgeting and financial planning.
Company Overview
1-800-GOT-JUNK? is a leading junk removal service that has established itself as a household name in the waste management industry. Founded in 1989, the company focuses on providing eco-friendly junk removal solutions while delivering exceptional customer service. With a strong brand and proven business model, franchisees benefit from comprehensive training and ongoing support.
Frequently Asked Questions
The initial investment for a 1-800-GOT-JUNK? franchise ranges from $168,800 to $258,150, which includes the franchise fee and other startup costs.