Junk removal is a service that has continued to be in demand and has shown no signs of slowing down since we began operating in 2004. The industry has proved to be recession-proof and is safe from being replaced by technological advancements. People will continue to accumulate more and more stuff each year and we will continue to go into their homes and businesses and lug it away for them!

Performance Refund

We are in this with you and we truly believe you will succeed as a Junkluggers owner if you follow our proven system. We are even willing to put our money where our mouth is. If your base territory fails to reach a total gross revenue of $180,000 during your first eighteen months of operation, then you may terminate your franchise agreement with us and we will refund 50% of your initial fee for the base territory.*

Performance Incentive

We also strongly believe in rewarding our franchise partners for a job well done. We are here to support you every step of the way and are happy to add a little extra encouragement to keep you motivated to grow your business! If your base territory generates at least $500,000 of cumulative gross revenue during the first eighteen months of operation, then we will pay you a performance incentive of $8,000!**

As for how much you can earn, we are a bit limited by franchise law in what we can disclose, but please see the charts below for more information. All franchises that started operating in 2013 have experienced double digit growth in their second full 12 months of operations:

Average Gross Sales/Average Job Revenue Based on Number of Years in Operations as of December 31, 2014

 

Years in Operation Total Units Average Gross Revenue Average Job Revenue
Locations operating for more than 24 months but less than 36 months 3 $180,104 $420
Locations operating for more than 48 months, but less than 60 months 1 $522,195 $427
Locations operating for more than 60 months, but less than 72 months 2 $1,104,499 $518
Locations operating for more than 72 months 2 $1,156,701 $414

Projected Financial Performance Information

 

Annual Amount Percentage of Gross Revenue Notes
Income (Gross Revenue) $504,000
Direct Expense

Disposal Costs Net Expense

$35,280 7.00% Net expense equals disposal fee (8%) less recycling revenue (1%)

Vehicle Expense

$32,280 6.40% Include gas (5%), truck maintenance, and GPS tracking service plan

Direct Labor & Benefits

$123,077 24.42% Includes truck hourly wages (22%) and payroll taxes (11% of wages)

Truck Parking

$9,000 1.79% Three trucks at $250 per truck per month

Insurance

$38,676 7.67% Includes commercial auto ($3,500 per truck), general liability, and workers’ compensation (20% of wages)

General Operating Expenses

$10,620 2.11% Includes truck supplies/equipment, wireless devices, and uniforms

Other Costs of Sales

$12,600 2.50% Includes merchant account fees (2%) and other miscellaneous operating expenses
Total Direct Expense $261,533 51.89%
Gross Profit $242,467 48.11%

Advertising

$30,240 6.00% $2,520 per month (minimum spend based on gross sales)

Professional Service Fees

$4,800 .95% Includes payroll and accounting fees

Office Expenses

$7,000 1.39% General office expenses
Total Expense $42,040 8.34%
Net Ordinary Income $200,427 39.77%
Other Expenses

Royalties & Fees

$67,260 13.35% Royalty fee (7%), call center fee (5%), brand fund fee (1%), and technology fee ($145 per month)
Total Other Expenses $67,260 13.35%
Net Income $133,167 26.42%
Truck Payments $37,800 7.50% Monthly financing payments of $1,050 per truck
Net Cash Flow Before Taxes $95,367 18.92%

 

Of course, these numbers are all estimates, but the table above should give you a general sense of the cost of starting a Junkluggers junk removal franchise.

Want to learning more about Junkluggers franchise partnership opportunities? Read the next page: Franchise Process

*In order to be eligible for the Performance Refund, you must be in full compliance with the Manual and the Franchise Agreement and any other agreements with us or our affiliates at the time you exercise the right to a Performance Refund and you must not have defaulted under the Franchise Agreement, the Manual, your lease, if applicable, and/or any other agreements with us, our affiliates vendors or suppliers at any time during your operation of the Franchised Business. Any request for a Performance Refund must be made within thirty (30) days of the eighteenth (18th) month anniversary of the operation of your Franchised Business. We will issue you the Performance Refund within thirty (30) days of (1) determining that you qualify for a Performance Refund, (2) you satisfying all post-termination requirements at your own cost and expense (including de-identifying and painting your trucks) and (3) receipt of a signed general release from each of your individual owners, shareholders, general partners or members of the entity operating the Franchised Business (each, an “Owner” and, collectively, the “Owners”).

**In order to receive the Performance Incentive, you must be in full compliance with the Manual, Franchise Agreement and any other agreements with us or our affiliates at the time you qualify for the Performance Incentive and you must not have defaulted under the Franchise Agreement, the Manual and any other agreements with us or our affiliates at any time during your operation of the Franchised Business. You must submit a request for the Performance Incentive in writing to us within forty-five (45) days of qualification. We will review and evaluate whether you meet the requirements and notify you within thirty (30) days. If approved, we will credit your Royalty Fee payments by $8,000.

Inquire below to view more of our Franchise Disclosure Document:

 

 

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