Detailed Estimates of Smash My Trash Franchise Costs Based on Item 7 (Estimated Initial Investment) of Smash My Trash’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $49,500
- If (1) you fail to complete the initial training program to the franchisor’s satisfaction, or (2) the franchisor concludes, no more than 10 days after you complete the initial training program, that you do not have the ability to satisfactorily operate your franchise, then the franchisor has the right to terminate your Franchise Agreement.
- If the franchisor does so, it will refund your franchise fee less any out-of-pocket costs it has incurred, subject to your signing a general release of the franchisor’s liability. Otherwise, all fees paid to the franchisor or its affiliates are non-refundable.
2. Rent, Utilities, and Leasehold Improvements: $500 to $2,500
3. Market Introduction Program: $2,500 to $7,500
4. Furniture, Fixtures, and Equipment: $500 to $2,000
5. Computer Systems: $400 to $1,500
6. Insurance: $2,000 to $4,500
7. Smash Trucks: $220,000 to $240,000
- You must use one custom-built vehicle (a “Smash Truck”) designed specifically for the franchised business and exclusively supplied by the franchisor and its affiliates. Your Smash Truck must follow the franchisor’s specifications and be fitted with the franchisor’s custom equipment. The vehicle must be kept in good condition, clean, dent-free, and otherwise presenting a professional appearance.
- You will purchase the chassis from Performance Truck, the franchisor’s required Kenworth dealer, for approximately $72,000. You will pay the franchisor’s affiliate, Custom Hydraulics, LLC, approximately $148,000 to $168,000 for the Smash Machine, rigging and installation, customs, shipping, and delivery.
- This is why the franchisor accounts for a range of $220,000 to $240,000 per Smash Truck. These fees may vary based on the franchisor’s affiliate’s costs incurred, your location, and manufacturer price increases.
8. Licenses and Permits: $500 to $1,000
9. Dues and Subscriptions: $350 to $1,000
10. Professional Fees (lawyer, accountant, etc.): $2,500 to $5,000
- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, and other operating expenses in excess of income generated by the business.
- In formulating the amount required for additional funds, the franchisor relied on the following factors, basis, and experience: the development of a Smash My Trash business by the franchisor’s affiliate, and the franchisor’s general knowledge of the industry.
11. Travel, Lodging, and Meals for Initial Training: $2,000 to $3,000
12. Additional Funds (for First 3 Months): $30,000 to $50,000
13. Total: $310,750 to $367,500