Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Gross Sales Since 2005 and Net Income in 2011 and 2012 for Company-Owned Junk King Outlet (2013 FDD)

by Franchise Chatter on March 3, 2014

in Franchise Earnings, Hauling Franchise



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Highlights of Junk King’s Item 19 Financial Performance Representations (2013 FDD)

  • The franchisor grants franchises to qualified candidates in the United States for the operation of junk removal businesses identified by the name “Junk King.”
  • Junk King FranchiseThe franchisor has combined its own best practices into a comprehensive process for operating a franchise junk removal business (the “Program”).
  • The Program is a step-by-step guide to running a Junk King franchise. It includes franchisee training, marketing and sales methodologies (including use of the Junk King trademark and brand development), proprietary software, and access to and support by the franchisor’s exclusive Customer Care Center (the “Center”) in San Carlos, California.
  • The Center is the hub for the company’s customer services. It processes all telephone, fax, and email customer contacts and sales; schedules customer appointments; makes after-service contracts to ensure customer satisfaction; and maintains the Junk King customer database.
  • The total investment necessary to begin operation of a Junk King franchise is estimated at between $88,200 to $112,900, assuming 500,000 persons in the territory. This includes the $40,000 initial franchise fee that must be paid to the franchisor.

Explanatory Notes for Financial Performance Representation #1 – San Mateo Company Outlet

  • The following table presents the gross sales that Junk King, LLC realized in operating a junk removal business in San Mateo County, California since 2005.
  • Junk King, LLC operates substantially the same junk removal services as described in the Disclosure Document. However, Junk King, LLC does not operate a franchised unit. It is a separate company that is owned by the same persons who own a majority interest in the franchisor.
  • Junk King, LLC operated from one location and its territory included approximately 733,000 people.
  • Junk King, LLC began operations in 2005 with one truck and grew to four trucks by 2009.
  • The gross sales numbers do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales to obtain net income or profit.
  • You should not use this information as an indication of how well your specific franchised business will do. Keep in mind that Junk King, LLC does not pay royalties and other fees to the franchisor as you would be required to do.

Explanatory Notes for Financial Performance Representation #2 – Truck Economics

  • The following represents the income and costs per truck that a franchisee can expect to obtain if the franchisee has one junk removal truck and the truck performs three jobs per day, operating eight hours per day, for six days per week.
  • Please note that the income and expense figures below relate to income from truck operations, directly associated truck costs, along with royalties, advertising, and call center expenses. A typical franchisee can expect to have additional overhead expenses, including but not limited to rent, liability insurance, and utilities.
  • The actual numbers you experience will vary depending upon several factors, including your individual abilities, competition, management, market demographics, and the number of trucks you operate in the territory.

Financial Performance Representation #1 – San Mateo Company Outlet

Gross Sales



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