College Hunks Hauling Junk & Moving Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
1. Initial Franchise Fee: $45,000 to $65,000
- If you are purchasing a standard Zone, the initial franchise fee is $45,000 to $65,000.
- If you are purchasing a small market franchise, the Initial Franchise Fee will range from $750 to $49,999.90.
- If you are purchasing a conversion franchise, you will pay the franchisor an initial franchise fee that is equal to the then-current initial franchise fee reduced by an amount equal to 10% of the total sales for the previous year for your existing business, but in no event will you pay less than $5,000.
2. Rent: $1,600 to $4,500
- You will need an office space of approximately 1,000 square feet for your Franchised Business.
- The costs for rent and security deposits will depend on the size and location of the space you choose to rent and your creditworthiness, among other things.
- You may not operate your Franchised Business from your home.
3. Lease, Utility, and Security Deposits: $2,000 to $5,000
4. Paint and Signage for Service Vehicle: $3,100 to $5,500
- You must purchase the branded vehicle wraps the franchisor specifies from a supplier the franchisor designates. You must letter your vehicles in accordance with local ordinances, the franchisor’s guidelines, and the Operations Manual.
- The franchisor’s estimate represents the painting and signage costs for one truck. If you purchase both concepts, you will need painting and signage for at least 2 trucks. If you are a conversion franchise, you must wrap and letter your existing trucks to the franchisor’s specifications.
5. Down Payment on Service Vehicle: $3,000 to $24,000
- The estimate represents the down payment on a service vehicle. If you purchase your truck outright instead of leasing or financing it, you will pay substantially more. The current service vehicle specifications are included in the Operations Manual and are subject to change.
- Junk Truck. The truck you must use in the College Hunks Hauling Junk concept must have the brand’s custom designed dump bed, which is separate from the truck manufacturer’s specifications and design. The estimated cost of a new junk truck is $65,000.
- The estimate includes the cost to lease or finance the truck and have the dump body built and installed but does not include any amounts if you have an older truck that needs to be retrofitted to meet the new clean diesel rules that took effect in 2010.
- The estimated lease amount for the first 3 months of operation is $3,000 to $4,000.
- Moving Truck. The estimated cost of a new moving truck is $82,000. These estimates assume that these vehicles are financed. If you purchase the truck, your initial investment costs would be higher.
6. Equipment and Hand Tools: $2,000 to $6,000
- The required tools include hand tools, global positioning system (GPS) for navigation purposes, outward and inward facing vehicle cameras, credit card processor, cleaning tools, and other materials. The cost of uniforms is also included in the estimate. If you purchase a conversion franchise, you must purchase the brand’s required uniforms.
- The high end of this estimate assumes you are purchasing the College Hunks Moving concept, which requires the purchase of appliance dollies, 4-wheel dollies, piano boards, rubber bands, moving pads (72” x 80”), and other miscellaneous inventory such as marketing inventory, wall map, packing supplies, and boxes.
7. Office Equipment and Supplies: $2,000 to $6,000
- The office equipment you must purchase and maintain includes a computer, printer/fax/copier, initial marketing materials, truck supplies, and miscellaneous office supplies, and may include office furniture.
8. Business Licenses and Permits: $500 to $3,000
- The costs estimated above include an estimate for the required dump permits, in addition to other business licenses and permits you may be required to have by your local government.
- If you purchase the College Hunks Moving concept, you will have separate licenses and permit requirements.
- If you purchase a conversion franchise, you will not incur this additional expense unless you add the College Hunks Moving concept.
- Moving license requirements vary significantly state by state. Some states have very rigorous and expensive licensing requirements. You are encouraged to investigate your state’s moving license requirements.
9. Professional Fees: $1,000 to $2,500
- You will need to have an attorney and an accountant, and possibly other professionals.
10. Insurance Deposit: $7,500 to $24,000
- The chart reflects the franchisor’s estimate of insurance premiums paid during your pre-opening process only.
- Some insurance carriers may require annual, semi-annual, or quarterly premium payments.
- The low end of the estimate assumes that you are purchasing one concept and your Franchised Business will have one truck; the high end of the estimate assumes that you are purchasing both concepts and your Franchised Business will have two or more trucks and the additional insurance required to provide moving services, such as cargo insurance and employee dishonesty insurance.
11. Training Expense: $1,500 to $5,000
- The figures in the chart are your expenses during initial training. You will have salary, training, and lodging expenses.
- For the training program, the franchisor provides instructors and instructional materials, but you will need to arrange for transportation, lodging, and food for yourself and one other trainee.
- The cost will depend on the distance you must travel and the type of accommodations you choose.
12. Pre-opening Business Ramp Up Advertising: $9,500 to $11,000
- You will conduct a pre-opening advertising campaign to promote your Franchised Business before commencing each service (moving and junk removal), and the advertising you need may include media buys and promotional items including point-of-sale items and merchandise.
13. Additional Funds (6 months): $80,000 to $120,000
- You will need capital to support ongoing expenses, such as payroll, utilities, vehicle fuel and maintenance, and local advertising if these costs are not covered by sales revenue during the start-up phase, which the franchisor estimates to be 3 months.
- This is only an estimate and there is no guarantee that additional working capital will not be necessary during the start-up phase or after.
14. Total Estimated Initial Investment: $158,700 to $283,500
- The estimates provided above apply to the pre-opening process only (except for Additional Funds) and assume that you will have 1 service vehicle and own 1 standard Zone.
- The franchisor relied on its principals’ and affiliates’ experience in providing junk removal since 2005 and moving services since 2011 when preparing these figures.