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How Much Is a 1-800-Got-Junk? Franchise? (Detailed Franchise Costs)

Last updated on November 6, 2022 by Franchise Chatter Leave a Comment
in Franchise Costs, Hauling Franchise

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



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1-800-Got-Junk? Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

For a Franchisee with 8 to 12 Subterritories, with 8 Being the Minimum-Sized New Territory 1-800-Got-Junk? Offers

1.  Initial Franchise Fee:  $65,000 to $97,500

  • This estimate represents the Initial Franchise Fee of $8,125 per subterritory, with the low estimate being a franchise with 8 subterritories and the high estimate being a franchise with 12 subterritories. If your franchise is more than 12 subterritories, you will pay $8,125 for each additional subterritory.

2.  Initial Marketing Expense:  $25,000

  • The Initial Marketing Expense will be used by 1-800-Got-Junk? in its discretion to market and promote the Franchised Business prior to and/or during the first 6 months of operation.

3.  Computer Hardware and Software:  $1,500 to $4,000


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  • You must establish and maintain a high-speed Internet connection for use in connection with your Franchised Business, and establish and operate such software, computer, communications, and other systems hardware and software that 1-800-Got-Junk? prescribes.
  • These amounts represent the estimated cost to purchase and establish this equipment.

4.  Miscellaneous Opening Costs:  $5,000 to $15,000

  • This estimates your initial miscellaneous start-up expenses, including your initial truck-based marketing kit, yellow page and/or Universal Business Listing ads, uniforms, truck equipment, deposits, business licenses, and legal expenses.
  • Your expenses may vary substantially, upward or downward, depending upon the nature of your existing operations, whether you currently own computers, communications, and related equipment, and whether you currently have an office.
  • You will also have to pay for fuel and maintenance costs for your trucks. These figures are estimates and 1-800-Got-Junk? cannot guarantee that you will not have additional expenses in starting your business.

5.  Equipment (vehicle lease with dump box):  $0 to $10,000 (lease/purchase deposit)

  • Total truck cost is estimated at $57,689 per gasoline-powered truck and $67,353 per diesel-powered truck, which includes an approved dump body at an estimated cost of $19,145. The above figure assumes that the truck is leased or financed and does not include applicable taxes or shipping for the complete truck (chassis and dump body).
  • You must obtain a truck equipped with a dump body from 1-800-Got-Junk?’s designated supplier. Truck cost is estimated and will vary depending upon market prices. You are encouraged to check with your local auto dealership.
  • 1-800-Got-Junk? requires a minimum of 2 trucks but you may require more if you have multiple subterritories.  If you have multiple subterritories, 1-800-Got-Junk? recommends that you commence operating all vehicles as soon as reasonably possible; however, you are only required to purchase or lease 2 trucks upon start-up, and purchase or lease further trucks according to a schedule after start-up to which 1-800-Got-Junk? agrees.
  • You are required to use only those trucks in the operation of the Franchised Business, and permitted to use the trucks only for the Franchised Business and for no other reason.

6.  Real Estate/Rent:  $1,200 to $5,000

  • You must secure a location from which you will operate your franchise at the commencement of operations. You must maintain sufficient space to operate computer, communications, and related equipment and maintain records. 1-800-Got-Junk? estimates that you will need a minimum of 300 to 400 square feet.
  • The above estimate is based upon rental payments of $400 per month, with payment of first and last month’s rent and a damage deposit equal to 1 month’s rent at the beginning of the lease.

7.  Local Marketing (3 months):  $3,600

  • You are required to expend 8% of your Gross Revenue on local advertising, but in any event no less than $3,600 per quarter on local advertising during your first year of operations.
  • A significant amount of working capital may be allocated to additional marketing during the start-up phase of the business. The prices for these items will vary depending upon your location and on market prices.

8.  Insurance:  $2,000 to $8,000

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  • You must obtain and maintain at all times during the term of your franchise the types of insurance policies or coverage and the minimum policy limits or maximum deductibles of any policy as specified in the Operations Manual (“Coverages”), which are apt to change from time-to-time.
  • This is an estimate for your initial insurance expenses, but you must continually maintain insurance coverage in such amounts as 1-800-Got-Junk? specifies.
  • You must name 1-800-Got-Junk? and its affiliates, agents, representatives, shareholders, directors, officers, and employees as additional insureds on all policies of insurance, and include a waiver of subrogation against these additional insureds.

9.  Training Expenses:  $1,500 to $4,150

  • The training expenses are incurred by you for your travel, accommodations, and meals while training at 1-800-Got-Junk?’s training facility. Per person expected costs are based upon a 5-day estimated stay, with accommodations from $150 to $300 per night; one meal per day (1-800-Got-Junk? provides breakfast and lunch during training); air transportation at $500 to $1,000 per person; and local transportation at $25 to $80 per day.
  • 1-800-Got-Junk? will train the Principal Operator and any other director, officer, or shareholder of your entity that 1-800-Got-Junk? requires at no charge to you; however, you must pay for all related training expenses as outlined.
  • Travel between Canada and the United States now requires a passport. You are responsible for making sure all training participants have the proper documentation to attend training at 1-800-Got-Junk?’s facility in Vancouver, BC.

10.  Additional Funds (6 months):  $58,000 to $73,000

  • This estimates your initial operating expenses, including working capital and marketing expenses during the initial start-up months.

11.  Total:  $162,800 to $245,250

  • 1-800-Got-Junk? relied on its experience in the business in the United States to compile these estimates. These figures are estimates and 1-800-Got-Junk? cannot guarantee that you will not have additional expenses in starting your business.

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