College Hunks Hauling Junk Franchise Cost & Fees
Date of Incorporation: 2005
Franchising Since: 2007
Headquarters: Tampa, Florida
Business Description: The College Hunks Hauling Junk system includes a method of providing junk removal services and/or moving services for residential or commercial clients; color scheme and custom lettered vehicles; materials and supplies; using the designated Call Center; proprietary software; methods, specifications and procedures for operations; procedures for management control; training and assistance; and merchandising, advertising and promotional programs, and client service procedures, all of which may be changed, improved and further developed. The franchisor currently offer College Hunks Moving services in select markets, which is part of the College Hunks Hauling Junk Franchised Business. The College Hunks Moving services may also include packing boxes for customers as well as sales of boxes and packing materials.
Franchise Offer: Franchisees will have the opportunity to purchase a Junk Removal Services Franchise, a Moving Services Franchise, or both depending on their financial ability and their professional experience. The franchisor also offers a “small market” franchise for Zones that have between 5,000 and 299,999 in population and a conversion franchise for business operators in a similar business (junk removal and/or moving services) who wish to convert their businesses to its System.
Financial Assistance: If franchisees meet the franchisor’s criteria, including financial status and credit rating, the franchisor may offer the opportunity to finance up to 70% of the initial franchise fee. The total amount financed is repayable to the franchisor over 24 months with interest between 12% and 24% per annum. The interest rate the franchisee will be charged will depend on his/her credit worthiness. The franchisor has been accepted by SBA Franchise Registry. This acceptance may expedite the loan process if franchisees wish to obtain outside financing. Except as described, the franchisor does not offer direct or indirect financing nor does the franchisor guarantee the franchisee’s note, lease or any other obligation.
Training and Assistance: Before the Franchised Business's opening and within 30 days of signing the Franchise Agreement, the franchisor will provide a mandatory training program in the operation of the Franchised Business to the franchisee and one additional person (for a maximum of two people). Approximately 5 to 15 days of training will be conducted at the franchisor’s headquarters in Tampa, Florida. The cost of the training program is included in the initial franchise fee and will be provided to the franchisee and one additional person. All attendees are required to complete the training program to the franchisor’s satisfaction. However, the franchisee will be responsible for all costs of travel, food, lodging, wages and other incidental expenses incurred by the franchisee and employee in attending the training program. In addition, the franchisor may elect to provide up to three days of additional on-site training during the first three months of operations of the Franchised Business, and from time to time as deemed necessary. The franchisor will also provide additional training programs, refresher courses or “on-the-job” training at a mutually convenient time. When the franchisor decides to hold it, franchisees or their representative must attend the annual convention.
Territory: The franchisor will grant the franchisee a Designated Territory within which to operate the Franchised Business, which will be the first (or only) Zone purchased. The franchisor will establish the Designated Territory and each additional Zone the franchisee may purchase based on population, as determined by the most recently published data from the U.S. Census Bureau (or such other source as the franchisor decides to use). It is anticipated that each Zone will have a population of approximately between 300,000 and 400,000 people. During the term of the Franchised Business, when the franchisor refers to the franchisee’s “Designated Territory,” it will include all contiguous Zones purchased.
Term of Agreement and Renewal: The length of the franchise term is 10 years. Renewal is for an additional 10-year term. To renew, franchisees must sign the then-current form of Franchise Agreement and satisfy other renewal conditions. The fees and other conditions for any later granting of subsequent renewals will be governed by the form of renewal franchise agreement that franchisees sign.
Obligations and Restrictions: During the entire term of the Franchise Agreement, one of the franchisee’s owners must be designated as the “Managing Owner,” responsible personally for devoting his or her full time and best efforts to the supervision and operation of the Franchised Business and to whom the franchisor may give, and from whom the franchisor may receive, direction. Franchisees must identify their Managing Owner before franchisees sign the Franchise Agreement. The Managing Owner must complete the initial training program and maintain at least a 51% ownership interest in the Franchised Business. Franchisees must use the Franchised Business solely for the operation of the Franchised Business. Franchisees must keep the Franchised Business open and in normal operation for the minimum hours and days as specified.
Estimated Number of Units: 180
|Name of Fee||Low||High|
|Initial Franchise Fee||$40,000||$50,000|
|Rent – 3 months||$600||$2,250|
|Lease, Utility and Security Deposits||$100||$700|
|Paint and Signage (Vehicle)||$3,100||$5,500|
|Service Vehicle -Deposit on Lease or Finance||$6,000||$22,000|
|Equipment and Hand Tools||$2,000||$6,000|
|Office Equipment and Supplies||$2,000||$6,000|
|Business Licenses & Permits||$500||$3,000|
|Grand Opening Advertising||$10,000||$20,000|
|Additional Funds (6 months)||$28,000||$80,000|
|TOTAL ESTIMATED INITIAL INVESTMENT||$95,300||$208,200|
|Type of Fee||Amount|
|Continuing Royalty Fee - Junk Removal Services||7% of Gross Sales.|
|Minimum Annual Royalty ‒ Moving Only / Junk & Moving||$6,000 per Zone during 1st year of operations; $7,200 per Zone during 2nd year of operations; $9,600 per Zone during 3rd year of operations; $12,000 per Zone during 4th year of operations; and $14,400 per Zone during each subsequent year of operations. The amount payable by franchisees is the amount by which the Minimum Annual Royalty exceeds the total Continuing Royalty Fees actually paid by franchisees during that year of operations.|
|Minimum Annual Royalty ‒ Junk Only||$4,500 per Zone during 1st year of operations; $5,400 per Zone during 2nd year of operations; $7,200 per Zone during 3rd year of operations; $9,000 per Zone during 4th year of operations; and $10,800 per Zone during each subsequent year of operations. The amount payable by franchisees is the amount by which the Minimum Annual Royalty exceeds the total Continuing Royalty Fees actually paid by franchisees during that year of operations.|
|SLC Support Fee||$727 per month for junk-only franchises which includes software, service and support;
$857 per month for moving only or junk and moving franchises which includes software, service and support.
|SLC Appointment Fee||$17 per scheduled appointment by the CLC.|
|Brand Development Fee||1% of Gross Sales.|
|Local Advertising||$1,000 per service (junk removal services or moving services or both) per Zone or 6% of Gross Sales per month, whichever is greater. The minimum required amount the franchisee must spend does not include marketing collateral and supplies.|
|Transfer (Franchise Agreement)||$15,000|
|E-mail Account||The franchisor currently does not charge for the first 3 e-mail addresses, but franchisees must pay $8 per month for each additional e-mail address/account.|
|Non-Compliance Fee||Infraction fee between $100 and $250 per infraction.|
|Initial Training and Additional Personnel Training||No fee for the first two people who attend training, except for travel, meals, lodging and wages. A per person fee will be determined by the franchisor for Additional Personnel Training and depends on the instructor's fee, travel, lodging, food and materials associated with the training topic.|
|Refresher Training Program / Continuing Education||Out of pocket expenses only, which will depend on the location of the program and the level of experience of the representative.|
|Enrichment Training||Will vary under the circumstances.
May include payment of the franchisor’s per diem fee for a trainer it sends to the franchisee’s Franchised Business plus reimbursement of the trainer's expenses. Current per diem fee = $200
|Late Reporting Fee||$150 per late report; increases to $250 for any consecutive violation(s).|
|Interest on Overdue Amounts||18% per annum or highest rate allowed by applicable state law.|
|Audit||Amount of the deficiency, plus interest; if audit is due to non- reporting or reveals an understatement of 2% or more, then franchisees must pay the amount of the deficiency or $500, whichever is greater, plus the cost of the inspection or audit.|
|Costs and Attorneys' Fees||Will vary under circumstances.|
|Indemnification||Will vary under circumstances.|
|Annual Franchisee Convention (if held)||$500 per person, excluding cost of transportation and lodging.|
|Missed Convention Fee||$500|
|Liquidated Damages||The franchisee’s average monthly royalties during 12 months prior to termination times the greater of (a) 24 or (b) the number of months remaining in the term at the time of termination.|
|Supplier Testing||Franchisor’s costs to evaluate the proposed supplier.|
|Service Vehicle Replacement||As incurred.|
|Insurance||Reimbursement of franchisor’s costs.|
|Management Fee||$3,000 per month plus expenses.|
|Violation of Non-Competition Covenant||$10,000|
|Mystery Shopper Program||$200 per shop.|
|Penalty Fee for Sales in Another Franchisee's Designated Territory||Amount equal to 20% of job revenue for 1st violation, 50% of job revenue for 2nd violation, and 100% of job revenue for 3rd violation.|
|National Account Commission||Varies on case-by-case basis depending on the size of the National Account and the scope of services that the franchisor provides in managing or servicing the National Account or the National Accounts program.|
The above information has been taken from the FDD of College Hunks Hauling Junk . Year of FDD: 2015
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