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FDD Talk 2015: The 1-800-GOT-JUNK? Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on August 10, 2015

in FDD Talk 2017: Service Franchises, Franchise Earnings, Hauling Franchise



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1-800-Got-Junk? Photo by Photo Nut 2011

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the 1-800-GOT-JUNK? franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a 1-800-GOT-JUNK? franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of 1-800-GOT-JUNK?’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average and median gross sales for the seven 1-800-GOT-JUNK? franchisees operating for more than 12 months but less than 24 months as of December 31, 2014
  • 2014 average and median gross sales for the six 1-800-GOT-JUNK? franchisees operating for more than 24 months but less than 36 months as of December 31, 2014
  • 2014 average and median gross sales for the five 1-800-GOT-JUNK? franchisees operating for more than 36 months but less than 48 months as of December 31, 2014
  • 2014 average and median gross sales for the two 1-800-GOT-JUNK? franchisees operating for more than 48 months but less than 60 months as of December 31, 2014
  • 2014 average and median gross sales for the five 1-800-GOT-JUNK? franchisees operating for more than 60 months but less than 72 months as of December 31, 2014
  • 2014 average and median gross sales for the 107 1-800-GOT-JUNK? franchisees operating for more than 72 months as of December 31, 2014

Section I – Background Information

Everybody’s got stuff they need to get rid of, but doing it can just be a royal pain in the neck. So the stuff builds up and accumulates and soon becomes an overwhelming mess you just can’t deal with. But now, all you have to do is call 1-800-GOT-JUNK? and watch all that unwanted stuff disappear.

It was back in 1989 when college student Brian Scudamore was having trouble finding a job in Vancouver. As he watched an old junk-hauling truck ambling through a McDonald’s drive-thru, the proverbial light bulb went off and he started “The Rubbish Boys” with the motto, “We’ll Stash Your Trash in a Flash!”

His brainstorm to help pay for college took off fast. In the late 1990s he renamed it 1-800-GOT-JUNK?, bought more trucks, hired awesome workers, and grew the brand to more than 200 locations across three countries (US, Canada, and Australia).

Calling them will get you a no-obligation same-day appointment where you’ll find out exactly what it will cost to get rid of your junk with an up-front all-inclusive price.

Here’s how 1-800-GOT-JUNK? keeps the piles moving so people have the space and peace of mind they need:

What DON’T They Take?

If they can fit it in the truck, it seems like they take it. In terms of household junk, they’ll take appliances, refrigerators, mattresses, furniture, carpeting, TVs, tires, hot tubs, and scrap metal. From offices they’ll take computers, printers, and monitors, as well as furniture. General junk they’ll take includes leaves, rubbish, garbage, construction debris, and they’ll even do estate cleanouts.

But Where Does it All Go?

No one wants to contribute to the problem of ever-growing landfills, so 1-800-GOT-JUNK? does its best to divert as much of your junk as possible away from the solid waste stream. They’ll donate whatever they can to area charities such as the Salvation Army, Goodwill, and Habitat for Humanity, and also recycle as much as possible.

Since 1989, the company claims to have kept 1.5 billion pounds of junk out of the landfill.

Eco-Commitment

The company takes its environmental mission a lot more seriously than you might expect, and it makes sure all of its employees follow through with it as well. It is fully committed to measuring and reporting the volume, composition, and landfill diversion rate of the junk it collects.

In general, fully 61% of what it collects does NOT end up in a landfill (which means 39% does). About 45% of what they collect ends up being recycled or reused, while 16% goes to incinerators to produce energy.

The company is working to increase its landfill diversion rate from 61% to 75%.

Weird Junk Marketing

As you can imagine, this kind of service has seen it all, which can make for some very catchy email marketing campaigns. The company recently leveraged a six-foot-tall walkie talkie and mummified cat into buzz for its services.

Section II – Estimated Costs

  • Please click here for detailed estimates of 1-800-GOT-JUNK? franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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