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1-800-GOT-JUNK Franchise Cost & Fees

Date of Incorporation: 1998
Franchising Since: 1999
Headquarters: Vancouver, B.C., Canada
Country of Origin: Canada

Business Description: 1-800-GOT-JUNK? is a unique method for operating and franchising junk removal businesses (the System). The System includes proprietary software, brand development, training, marketing programs and access to the exclusive service of the Sales Center, as well as the mark “1-800-GOT-JUNK?” and related marks.

Franchise Offer: 1-800-GOT-JUNK? LLC offers franchises for the operation of retail junk removal businesses under the name “1-800-GOT-JUNK?”

Financial Assistance: The franchisor generally does not offer financing. However, the franchisor may, in its sole discretion, allow the franchisee to pay the initial franchise fee with respect to some of the subterritories in equal monthly installments for a period not to exceed one year upon terms acceptable to the franchisor. The franchisor does not guarantee any notes, leases or obligations for the franchisee. While not obligated to do so, the franchisor may, in their discretion, introduce the franchisee to third party financing sources that may, if the franchisee meets their qualifications, supply financing options for items required as part of the initial investment.

Training and Assistance: The training covers all aspects of the business operating system, consisting of both in-class training and in-field training. There is currently no charge for attendance at initial training by the franchisee (or the designated owner) and one of the franchisee’s employees. The initial training session generally includes four days of classroom time and one day of field training. Within 180 days of the franchisee’s business launch, the franchisor will do a field visit to revisit training in the field at the franchisee’s operation. At least one refresher training course is required each year. The franchisor reserves the right to offer and/or require additional training courses as deemed necessary.

Territory: The franchisee will receive a protected territory in which to operate the Franchised Business. Before signing the Franchise Agreement, the franchisor will determine the protected territory by developing geographic areas with base populations of 50,000 to 75,000 based on the most recently published data from the U.S. Census Bureau (or such other source as the franchisor may indicate to the franchisee). If the franchisee’s territory consists of more than one of these areas, each one will be considered a “subterritory.”

Term of Agreement and Renewal: The length of the franchise term is 5 years, though the franchisor retains the right, but not the obligation, to extend the term up to 12 months. If conditions are met, the franchisee can renew or extend the franchise term for 3 additional 5-year terms.

Obligations and Restrictions: The franchisor requires that the Franchised Business be under the direct supervision at all times of one full-time General Manager approved by the franchisor. If the franchisee is an individual, he or she will generally be the person who acts as General Manager, but the General Manager can be any person so long as they have been trained and approved by the franchisor. The franchisee must operate the Franchised Business and perform all services in accordance with the operating guidelines and quality standards established by the franchisor.

Estimated Number of Units: 160

Investment Tables:
Initial Investment for a Typical New Territory (4 Subterritories)
Name of Fee Low High
Initial Franchise Fee $45,000 $45,000
Initial Marketing Fee $12,500 $12,000
Computer Hardware and Software $1,500 $3,000
Miscellaneous Opening Costs $5,000 $10,000
Equipment (Vehicle Lease with dump box); Lease/purchase deposit $0 $10,000
Real Estate/Rent $1,200 $1,200
Local Marketing - 3 Months $3,600 $3,600
Insurance $800 $800
Training Expenses $1,500 $3,000
Additional Funds - 6 Months $56,200 $70,000
ESTIMATED TOTAL $126,800 $158,600
Other Fees
Type of Fee Amount
Royalty 8% of Gross Revenue.
Minimum Royalty Depending upon the franchisee’s year of operation, the Minimum Royalty will range from $700 to $2,000 per Subterritory per 12 month period. The amount payable by the franchisee is the aggregate amount by which the Minimum Royalty exceeds the amount of Royalties actually paid by the franchisee in any year of operations.
Sales Center Fee 7% of Gross Revenue.
Marketing Fund 1% of Gross Revenue.
Branding Cooperative Up to 3% of Gross Revenue in aggregate.
Advertising Materials As arranged.
Additional Training Payment for additional training or retraining at up to $100 per person per day for up to possibly 10 days.
Transfer $10,000
Renewal Fee $5,000
Audit Expenses Costs of examination or audit (approximately $1,500 to $5,000 but may be more), plus any deficiency in amounts that should have been paid to the franchisor.
Interest on Late Payments 24% per year or the highest rate allowed by the state where the franchisee is located.
Annual Conference $1,500 to $2,000 plus costs associated with attendance.
Management Assistance $450 per day plus out of pocket expenses.
Liquidated Damages $25 - $2,000 depending upon the breach.
Indemnity Depends upon the size of the loss for which the franchisee is required to indemnify the franchisor.
Proposed Supplier Evaluation Varies, depending on proposed supplier and cost of products to be evaluated.

The above information has been taken from the FDD of 1-800-GOT-JUNK. Year of FDD: 2015

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