In this FDD Talk 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 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a 1-800-Got-Junk? franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned 1-800-Got-Junk? outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of 1-800-Got-Junk?’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, highest, and lowest gross sales for the 131 franchised 1-800-Got-Junk? businesses that have been in operation for more than one day and made any gross sales at any point during the 12-month period ending on December 31, 2020, grouped according to number of months in operation (more than 1 day, but less than 12 months; more than 12 months, but less than 24 months; more than 24 months, but less than 36 months; more than 36 months, but less than 48 months; more than 48 months, but less than 60 months; more than 60 months, but less than 72 months; and more than 72 months)

• number and percentage of franchisees in the United States, Canada, and Australia (separately stated) generating total revenue of greater than $1,000,000, from $750,001 to $1,000,000, from $500,001 to $750,000, and $500,000 or less, respectively
  

• total 2020 gross revenue of 1-800-Got-Junk? Franchised Businesses operating in the United States, Canada, and Australia that reported revenue and were open on December 31, 2020

Section I – Background Information

11 Things You Need to Know About the 1-800-Got-Junk? Franchise

Grows Business and Teams at Unprecedented Rate

1.  In mid-July 2021, 1-800-Got-Junk? said that it has experienced unprecedented growth in recent years as the company continues to set the bar for customer satisfaction and professional excellence in the junk removal industry. Between 2018 and 2020, the company saw a record-breaking 30.4% growth and continued to see an increasingly strong upward trajectory as the company entered the third quarter of 2021. 1-800-Got-Junk?’s massive growth is a clear indication that one year into the pandemic, people are still spending a lot of time in their homes and investing in them.

2.  In April 2020, 77% of 1-800-Got-Junk? customers cited “decluttering” as the number one reason for needing junk removal. This increased need for people to create at-home spaces that meet their ever-changing needs has skyrocketed the demand for junk removal services. To keep up with this demand, the company has over 1,500 trucks and 3,500 to 5,000 Truck Team Members on the road at any given time, and that need is rapidly increasing.

3.  This growth has presented 1-800-Got-Junk? franchises with the opportunity to accelerate hiring efforts. “The trends we’ve experienced this past year are a testament not only to the exceptional service we provide, but also to the incredible people we have working across our organization,” said James Alisch, managing director of 1-800-Got-Junk? “The current need for our franchises to accelerate their recruitment is a good problem to have, and an opportunity for us to add new faces to our franchise teams,” he continued.

4.  The position of Truck Team Member is a valuable role in the organization. They are the heroes of the business and the happy, helpful faces behind why the company continues to see upward growth trends. 1-800-Got-Junk? also encourages career development, ensuring truck teams feel supported in the long-term. These efforts have resulted in promising overall team engagement numbers, with 88% of the Truck Team Members feeling they are part of a team and 80% willing to recommend 1-800-Got-Junk? as a great place to work.

5.  “1-800-Got-Junk? is a special place where a person can start a job and have it turn into a career,” said Josh Herron, who started his career with 1-800-Got-Junk? in 2004 as a Truck Team Member, and now owns several franchises. He continued, “As a 20-year-old student, I took a job for an hourly rate at 1-800-Got-Junk? and over the last 17 years, I learned how to run a business, exceed customers’ expectations and create a work environment that benefits hundreds of teammates and the communities they serve. At 37, I now own a multi-million dollar business with 12 1-800-Got-Junk? locations. I love this business!”

EzFill Announces New Fleet Fueling Agreement with 1-800-Got-Junk? in Miami

6.  In early December 2021, EzFill Holdings, Inc., a pioneer and emerging leader in the on-demand mobile fuel industry, announced the signing of a new fleet agreement with the Florida Southeast office of national franchisor 1-800-Got-Junk? EzFill, the largest on-demand mobile fuel delivery provider in Florida, will supply regularly scheduled fueling to the 1-800-Got-Junk? fleet in the Miami area, with plans to expand and service its fleets in additional markets in Florida and other states in the near future. This comes on the heels of EzFill’s recently announced agreement with Servpro of North Miami.

7.  Mike McConnell, CEO of EzFill, said, “The agreements with 1-800-Got-Junk? and Servpro set the stage for EzFill to service additional fleets around the country under the same franchises, and further pave the way for our planned national expansion. With EzFill’s convenient on-demand mobile fueling, fleet operators can now eliminate themselves from the burden, expense, and health concerns of having their employees travel to the gas station. No more down-time required to fuel their vehicles at the gas pump, or the need to pay drivers to perform this non-revenue-generating task, leading to increased driver efficiency as well as reduced wear and tear on their vehicles.”

8.  Nate Kloiber, franchise partner for 1-800-Got-Junk? in Southeast Florida, said, “The combination of the convenience along with the ability to get rid of our fleet cards and eliminate wasted labor costs at gas stations made it a no-brainer for us.”

Company History

9.  1-800-Got-Junk? was founded in 1989 by Brian Scudamore in Vancouver, British Columbia, Canada. At the time, Scudamore was still in college but was looking for a summer job. After he saw an old junk hauling truck pass by, Scudamore was inspired to start his own junk hauling business. Scudamore initially called the company The Rubbish Boys Disposal Service. The junk hauling business was successful from the start and Scudamore decided to drop out of college to run the company full time.

10.  Scudamore grew the company over the next decade and decided to start franchising in 1998. He changed the company’s name to 1-800-Got-Junk? and began opening franchises around Canada. In 2000, the first location outside of Canada was opened in Portland, Oregon, USA. The success of 1-800-Got-Junk? helped Scudamore to establish O2E Brands, which is now the parent company of 1-800-Got-Junk?, Shack Shine, and Wow 1 Day Painting. Today, there are 1-800-Got-Junk? locations across North America and Australia.

Entrepreneur’s Franchise 500

11.  1-800-Got-Junk? ranked No. 336 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of 1-800-Got-Junk? franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on 1-800-Got-Junk?’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  130
• Outlets at the End of the Year:  130
• Net Change:  0

2019

• Outlets at the Start of the Year:  130
• Outlets at the End of the Year:  128
• Net Change:  -2

2020

• Outlets at the Start of the Year:  128
• Outlets at the End of the Year:  128
• Net Change:  0

Company-Owned

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  1
• Net Change:  +1

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  3
• Net Change:  +2

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• The following table presents the average gross sales realized by certain 1-800-Got-Junk? franchisees as of December 31, 2020.

• 1-800-Got-Junk? has provided you with this information to help you make a more informed decision about its franchises. You should conduct your own research to assist you in preparing projections for your own Franchised Business.

• Unless otherwise specified, “Gross Sales” means the actual gross sales billed to consumers for products and services less taxes collected and credits or refunds given in accordance with 1-800-Got-Junk?’s refund policy.

• The information provided below was compiled from the 131 Franchised Businesses that were in operation as a franchisee for more than one day and made any gross sales at any point during the 12-month period ending on December 31, 2020.

• None of the underlying data supplied to 1-800-Got-Junk? has been audited.

• You should note that gross sales will be dependent, among other things, upon the size of the territory in which the Franchised Business operates and the number of trucks operating in that territory.

• Because 1-800-Got-Junk?’s franchisees own different numbers of subterritories, 1-800-Got-Junk? provides in the charts below the franchisee average, median, highest, and lowest Gross Revenue. Of the U.S. franchisees reported in the charts below, the average amount of subterritories owned is 25, with the fewest amount owned being 8, and the largest amount owned being 89; the median amount of subterritories owned is 17.

Part 1 – Average Gross Sales of 1-800-Got-Junk? Franchisees for the 12 Months Ending December 31, 2020

Franchisees Operating for More Than One Day, But Less Than 12 Months

• Total Franchisees:  1
• Average Gross Sales:  $692,231
• Number and Percentage of Franchisees At or Above Average:  1/100%
• Median Gross Sales:  $692,231
• Number and Percentage of Franchisees At or Above Median:  1/100%
• Highest Gross Sales:  $692,231
• Lowest Gross Sales:  $692,231

Franchisees Operating for More Than 12 Months, But Less Than 24 Months

• Total Franchisees:  0
• Average Gross Sales:  $0
• Number and Percentage of Franchisees At or Above Average:  0/0%
• Median Gross Sales:  $0
• Number and Percentage of Franchisees At or Above Median:  0/0%
• Highest Gross Sales:  $0
• Lowest Gross Sales:  $0

Franchisees Operating for More Than 24 Months, But Less Than 36 Months

• Total Franchisees:  2
• Average Gross Sales:  $2,264,481
• Number and Percentage of Franchisees At or Above Average:  1/50%
• Median Gross Sales:  $2,264,481
• Number and Percentage of Franchisees At or Above Median:  1/50%
• Highest Gross Sales:  $4,186,997
• Lowest Gross Sales:  $341,965

Franchisees Operating for More Than 36 Months, But Less Than 48 Months

• Total Franchisees:  7
• Average Gross Sales:  $2,009,606
• Number and Percentage of Franchisees At or Above Average:  4/57%
• Median Gross Sales:  $2,300,730
• Number and Percentage of Franchisees At or Above Median:  4/57%
• Highest Gross Sales:  $2,872,886
• Lowest Gross Sales:  $817,815

Franchisees Operating for More Than 48 Months, But Less Than 60 Months

• Total Franchisees:  1
• Average Gross Sales:  $1,288,386
• Number and Percentage of Franchisees At or Above Average:  1/100%
• Median Gross Sales:  $1,288,386
• Number and Percentage of Franchisees At or Above Median:  1/100%
• Highest Gross Sales:  $1,288,386
• Lowest Gross Sales:  $1,288,386

Franchisees Operating for More Than 60 Months, But Less Than 72 Months

• Total Franchisees:  5
• Average Gross Sales:  $1,664,720
• Number and Percentage of Franchisees At or Above Average:  2/40%
• Median Gross Sales:  $1,403,998
• Number and Percentage of Franchisees At or Above Median:  3/60%
• Highest Gross Sales:  $2,813,298
• Lowest Gross Sales:  $598,579

Franchisees Operating for More Than 72 Months

• Total Franchisees:  115
• Average Gross Sales:  $2,756,124
• Number and Percentage of Franchisees At or Above Average:  44/38%
• Median Gross Sales:  $1,797,144
• Number and Percentage of Franchisees At or Above Median:  58/50%
• Highest Gross Sales:  $11,720,871
• Lowest Gross Sales:  $321,496

• The revenue reported by franchisees includes partial-year performance by franchisees before the franchises were transferred to new owners or that closed during the year.

• The revenue reported by franchisees includes 3 corporately-owned locations which were operated by Flywheel for at least one day in 2020.

• The average is calculated by adding all figures up and dividing by the number of figures counted.

• The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.

• Some franchisees have sold this amount. Your individual results may differ. There is no assurance you will sell as much. There is no assurance that any other 1-800-Got-Junk? Franchised Business will perform as well as, or anywhere near, the 131 Franchised Businesses used in preparing the averages shown above.

• The earnings claims figures do not reflect the costs of sales or operating expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 2 – Total Gross Revenue of 1-800-Got-Junk? Franchisees for the 12 Months Ending December 31, 2020

• The information provided below was compiled from all the 1-800-Got-Junk? Franchised Businesses operating in the United States, Canada, and Australia that reported revenue and were open on December 31, 2020. Franchise units that closed in 2020 are not reported.

United States (reported in USD)

• Total Number of Franchisees Reported:  131
• Number and Percentage Making Total Revenue Over $1,000,000:  104/79%
• Number and Percentage Making Total Revenue From $750,001 to $1,000,000:  10/8%
• Number and Percentage Making Total Revenue From $500,001 to $750,000:  8/6%
• Number and Percentage Making Total Revenue of $500,000 or Less:  9/7%

Canada (reported in CAD)

• Total Number of Franchisees Reported:  20
• Number and Percentage Making Total Revenue Over $1,000,000:  10/50%
• Number and Percentage Making Total Revenue From $750,001 to $1,000,000:  2/10%
• Number and Percentage Making Total Revenue From $500,001 to $750,000:  7/35%
• Number and Percentage Making Total Revenue of $500,000 or Less:  1/5%

Australia (reported in AUD)

• Total Number of Franchisees Reported:  6
• Number and Percentage Making Total Revenue Over $1,000,000:  3/50%
• Number and Percentage Making Total Revenue From $750,001 to $1,000,000:  1/17%
• Number and Percentage Making Total Revenue From $500,001 to $750,000:  1/17%
• Number and Percentage Making Total Revenue of $500,000 or Less:  1/17%

Part 3 – Total 2020 Gross Revenue of 1-800-Got-Junk? Franchisees

• The information provided below was compiled from all the 1-800-Got-Junk? Franchised Businesses operating in the United States, Canada, and Australia for at least 1 day in the 2020 calendar year.

• United States (reported in USD):  $316,793,505
• Canada (reported in CAD):  $35,273,571
• Australia (reported in AUD):  $8,112,685

• Canadian to U.S. Dollars ranged from 0.7863 to 0.6898 during calendar year 2020, and was 0.7854 on December 31, 2020.

• Australian to U.S. Dollars ranged from 0.7702 to 0.5571 during calendar year 2020, and was 0.7702 on December 31, 2020.

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