Who wants to run a junk franchise am I right?
How much money can you even make hauling Junk?
You might be surprised some franchisees make almost 10 million dollars a year hauling junk.
If you don't believe me stay tuned as today we look at 1-800-GOT-JUNK franchise and opportunities
in the junk hauling industry.
Today's video request was from subscriber Tony M, thanks for that keep those requests
coming if you would like us to review a franchise or business opportunity leave it below in
the comments.
Tony wanted to learn more about Junk Removal franchises.
Junk is one of those businesses that people never think about.
They are fixated so much on smoothies and hamburger franchises they don't even want
to look at Junk when we suggest it.
But very often times the not so sexy franchises like junk, cleaning and painting can be surprisingly
good money makers.
So in terms of visibility, the biggest, and really the originator of the massive market
that exists today is 1-800-GOT-JUNK.
They were the first to get in way back in 1989 and experienced phenomenal growth that
has resulted in some competition in the space.
We will cover those today as well.
1-800-GOT-JUNK was founded by Brian Scudamore - Brian is a fellow Canadian over on the West
Coast.
Brian has been tremendously successful in franchising and we'll try and get him on the
channel one day for an interview.
Brian left school at 19 to start his business and today 1-800-GOT-JUNK has more than 2000
trucks in 3 countries, is a 300 million dollar a year business and you see their blue trucks
everywhere including prime time TV shows like Dr Phil, Nightline, Game of Homes and throughout
the media.
Now the cost to open a 1-800-GOT-JUNK franchise is between $209,800 to $255,680 and I will
usually dig deeper into royalty costs and fees for the featured franchise but today
I wont.
Why?
Because there are pretty much zero territories available anymore for 1-800-GOT-JUNK.
That ship has sailed and unless you live in one of the smaller expansion territories and
there are apparently only 14 available in all of the US and Canada - you are out of
luck.
But there are other opportunities in Junk and we will cover those today.
Brian Scudamore, founder of 1-800-GOT-JUNK has also created several other innovative
franchise opportunities we'll take a quick look at those towards the end of the video.
So if you snoozed on the 1-800-GOT-JUNK franchise opportunity you are likely out of luck but
there are other options currently in that space, but be forewarned even these newer
franchises are becoming increasingly difficult to find in many cities as they are selling
out as well.
Other popular brands are College Hunks Hauling Junk and Moving, Junk King, and Junkluggers.
Investment levels for these Junk Franchises are in the $100,000 to $220,000 range and
that will generally include working capital and assume you are leasing your trucks.
Now a lot of people are under the misconception that as the owner of a junk business you are
in a truck hauling junk all day.
Absolutely not true.
All the junk franchises that we work with are an executive model, meaning the owner
runs the business, hires and trains, handles accounts, might go out and estimate occasionally
but the real skill set these franchises are looking for is a business professional, someone
who can grow and expand their business to multiple trucks not someone with experience
in hauling junk.
You'll need to be good with people, customer acquisition and retention, and keep them happy
as online reviews these days can make or break your business.
So if we determine that a junk franchise might be a good fit for the client and is available
in the territory there are several things you want to look at.
Size of the truck and cost per load.
You know a lot of people think if there is competition in a space it's a bad thing.
If there is competition in a space that means there is already an existing market.
So if we can go in with a market differentiator, and that can be things like a bigger truck
at a lower cost, it can mean showing up faster, it can mean greener or any number of things.
But competition is not a bad thing.
And those same people who complain they can't start a business because there is competition
are the same people who couldn't start a business because nobody else was doing it.
It's just fear - get over it and start a business already.
One of the things I found really neat about the Junk Business is that some brands also
provide National Alliances, so you are picking up merchandise that gets thrown away from
Big Box stores.
These big box stores often throw away things like wide screen TV's or patio sets that are
a just a bit damaged.
One of the franchisees we spoke with had two 60" TV's in his office he got for free.
Also a lot of residential customers throw stuff away that can be resold, and because
of this some franchises also suggest you retain a warehouse to store things and create an
additional revenue stream by reselling this "junk".
I have heard of some amazing stuff being thrown away in affluent areas like grand pianos and
antique furniture worth thousands of dollars.
This is a cash revenue stream you put an ad on craigslist and sell and keep the money.
Remember always pay your taxes on income earned.
But Robert get to the earnings already!
Taken from the brand new 2018 FDD, and the FDD is the franchise disclosure documents
that all franchises by law must have, mature 1-800-GOT-JUNK franchisees averaged $1,737,711
in gross sales, the highest franchisee in the system earned $9,208,241 Yes - almost
10 million dollars a year hauling junk.
and similar competitive franchises indicate close to 3 million in their Franchise Disclosure
Documents.
Junk, if you are in the right city, and have the right business skills can be very lucrative
as well as scalable.
Now obviously we don't have time in one video to delve into every aspect of junk franchising,
if you think your city might be a good fit and you have business experience give us a
call to see what is available in your area.
Now before we wrap up I also wanted to cover the newer franchises that are available from
1-800-GOT-JUNK founder Brian Scudamore.
The umbrella name for the suite of four brands is O2E, which stands for ordinary to extraordinary.
O2E takes ordinary home services and turns them into exceptional experiences.
The four brands in the O2E family are 1-800-GOT-JUNK, WOW-1-DAY PAINTING, You Move Me and Shack
Shine.
Each of these brands is using the same strategies of success as they did with 1-800-GOT-JUNK.
And here are your total investment amounts for those respective brands.
You Move Me $104,000 - $192,200 WOW 1 DAY PAINTING $90,000 - $130,000 Shack Shine $70,350
- $104,130 financing available with as low as $30K down OAC.
And we will take a more in depth look at all of these brands in a future video
If you would like to take a closer look at Junk franchises or any other franchise opportunities
give the experts a call at franchise city - you can also browse our franchise directory
Ill place a link above - don't forget to like and subscribe.
thanks for watching