In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Smash My Trash franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Smash My Trash franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Smash My Trash outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Smash My Trash franchise opportunity

Section V – Presentation and analysis of Smash My Trash’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average gross sales, fuel costs, maintenance/repair costs, payroll costs, adjusted EBITDA, and profit margin for the 21 Smash My Trash franchisees open between 12-15 months as of 12/31/2021, and 28 Smash My Trash franchisees open 16+ months as of 12/31/2021 (separately stated)

• 2021 average gross sales, fuel costs, maintenance/repair costs, payroll costs, adjusted EBITDA, and profit margin for the 15 Smash My Trash franchisees open between 12-15 months as of 12/31/2021 operated full time by owner of the franchise, and 6 Smash My Trash franchisees open between 12-15 months as of 12/31/2021 operated semi-absentee by owner of the franchise (separately stated)

• 2021 average gross sales, fuel costs, maintenance/repair costs, payroll costs, adjusted EBITDA, and profit margin for the 23 Smash My Trash franchisees open 16+ months as of 12/31/2021 operated full time by owner of the franchise, and 5 Smash My Trash franchisees open 16+ months as of 12/31/2021 operated semi-absentee by owner of the franchise (separately stated)

• 2021 average gross sales, fuel costs, maintenance/repair costs, payroll costs, adjusted EBITDA, and profit margin for the 28 Smash My Trash franchisees with 1-3 territories owned, 16 Smash My Trash franchisees with 4-7 territories owned, and 5 Smash My Trash franchisees with 8+ territories owned (separately stated)

Section VI – Key ratios, comparables, computations, and analyses for the Smash My Trash franchise opportunity (exclusive content for Platinum subscribers)

Section I – Smash My Trash Franchise Costs

• Smash My Trash franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,500
• Rent, Utilities, and Leasehold Improvements:  $500 to $2,500
• Market Introduction Program:  $2,500 to $7,500
• Furniture, Fixtures, and Equipment:  $500 to $2,000
• Computer Systems:  $400 to $1,500
• Insurance:  $2,000 to $4,500
• Smash Trucks:  currently $247,000 to $270,000 (excluding sales tax)
• Licenses and Permits:  $500 to $1,000
• Dues and Subscriptions:  $350 to $1,000
• Professional Fees (lawyer, accountant, etc.):  $2,500 to $5,000
• Travel, Lodging, and Meals for Initial Training:  $2,000 to $3,000
• Additional Funds (for first 3 months):  $30,000 to $50,000
• Total Estimated Smash My Trash Franchise Costs:  $339,850 to $400,500

Section II – Smash My Trash’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Smash My Trash’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,500
• Royalty:  8% of Gross Sales, subject to monthly minimums. Beginning in the third month after you open for business, there is a minimum monthly Royalty Fee based on the number of Territories you purchase. Ancillary Services (Non-Smash) Revenue: 8% of Gross Profit.
• Brand Fund Contribution:  1% of Gross Sales
• Market Cooperative Contribution:  as determined by co-op. Currently, none. However, once co-op is formed, not less than 1% of Gross Sales.

Section III – Number of Franchised and Company-Owned Smash My Trash Outlets

Franchised

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

2020

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  67
• Net Change:  +65

2021

• Outlets at the Start of the Year:  67
• Outlets at the End of the Year:  113
• Net Change:  +46

Company-Owned

2019

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  4
• Net Change:  0

2020

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  0
• Net Change:  -4

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

Section IV – News Updates on the Smash My Trash Franchise

• Smash My Trash Says It Saves Springfield Customers Money and Helps the Environment

• Franchisor 101: Trashing the Competition

• Smash My Trash Ranks No. 376 on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Smash My Trash Franchise (Item 19, 2022 FDD)

• As of December 31, 2021, there were 56 Smash My Trash franchisees that had been open and operating the type of business offered under the Disclosure Document for at least 12 months. A Smash My Trash franchisee opens for business when it takes delivery of its first Smash Truck.

• As of December 31, 2021, 26 of those franchisees had been open between 12-15 months, and the remaining 30 franchisees had been open for 16 months or longer. There were no corporate or affiliate-owned locations operating for the entire 2021 calendar year.

• The charts below include historical financial data submitted to Smash My Trash by 50 of the 56 Smash My Trash franchisees described above.

• This financial data has not been audited or otherwise inspected for accuracy beyond the figures provided to Smash My Trash by its franchisees. Smash My Trash has not inspected its franchisees’ receipts or other documentation supporting the figures the franchisees have provided to it.

• Smash My Trash excluded five franchisees from the 12-15 month group. Of these five excluded franchisees, one underwent an ownership transfer to a new owner during 2021, and four did not follow Smash My Trash’s System Standards, experiencing abnormal employee turnover rates, failing to utilize required systems, failing to report certain activity, and failing to accept national account opportunities from Smash My Trash.

• Smash My Trash excluded two franchisees from the 16+ month group. One of the excluded franchisees did not follow Smash My Trash’s System Standards, failing to secure customer agreements, and failing to route customers pursuant to system requirements. The other excluded franchisee underwent an ownership change during 2021 to a new owner.

• Smash My Trash has reviewed the financial statements submitted by the remaining 49 Smash My Trash franchisees described above to identify inconsistencies with the System Standards or accounting irregularities. Smash My Trash made adjustments to the financial data to account for improper deductions and categorization of interest expense, taxes, depreciation, amortization, and owner distributions.

• Adjustments were made to reduce amounts allocated to business expenses like travel, meals and entertainment, lodging, personal auto expenses, home office expenses in excess of reasonable amounts, management fees, and officer salaries.

Part 1 – Franchisees Open Between 12-15 Months as of 12/31/2021

• Count:  21
• Average Gross Sales:  $317,293 (100.0%)
• Average Fuel Costs:  $18,289 (5.8%)
• Average Maintenance/Repair Costs:  $10,863 (3.4%)
• Average Payroll Costs:  $143,228 (45.1%)
• Average Adjusted EBITDA:  $58,772 (18.5%)
• Average Profit Margin:  -5.89%

Part 2 – Franchisees Open 16 Months or More as of 12/31/2021

• Count:  28 (27 for Fuel Costs)
• Average Gross Sales:  $566,730 (100.0%)
• Average Fuel Costs:  $24,687 (4.4%)
• Average Maintenance/Repair Costs:  $13,154 (2.3%)
• Average Payroll Costs:  $170,768 (30.1%)
• Average Adjusted EBITDA:  $196,989 (34.8%)
• Average Profit Margin:  30.43%

Part 3 – Franchisees Open Between 12-15 Months as of 12/31/2021 Operated Full Time by Owner of the Franchise

• Count:  15
• Average Gross Sales:  $332,037 (100.0%)
• Average Fuel Costs:  $19,694 (5.9%)
• Average Maintenance/Repair Costs:  $11,473 (3.5%)
• Average Payroll Costs:  $138,989 (41.9%)
• Average Adjusted EBITDA:  $89,161 (26.9%)
• Average Profit Margin:  13.5%

Part 4 – Franchisees Open Between 12-15 Months as of 12/31/2021 Operated Semi-Absentee by Owner of the Franchise

• Count:  6
• Average Gross Sales:  $290,053 (100.0%)
• Average Fuel Costs:  $14,532 (5.0%)
• Average Maintenance/Repair Costs:  $9,585 (3.3%)
• Average Payroll Costs:  $149,664 (51.6%)
• Average Adjusted EBITDA:  -$577 (-0.2%)
• Average Profit Margin:  -35.9%

Part 5 – Franchisees Open 16+ Months as of 12/31/2021 Operated Full Time by Owner of the Franchise

• Count:  23 (22 for Fuel Costs)
• Average Gross Sales:  $536,970 (100.0%)
• Average Fuel Costs:  $22,836 (4.3%)
• Average Maintenance/Repair Costs:  $12,367 (2.3%)
• Average Payroll Costs:  $147,982 (27.6%)
• Average Adjusted EBITDA:  $162,959 (30.3%)
• Average Profit Margin:  26.4%

Part 6 – Franchisees Open 16+ Months as of 12/31/2021 Operated Semi-Absentee by Owner of the Franchise

• Count:  5
• Average Gross Sales:  $703,628 (100.0%)
• Average Fuel Costs:  $32,831 (4.7%)
• Average Maintenance/Repair Costs:  $16,774 (2.4%)
• Average Payroll Costs:  $275,586 (39.2%)
• Average Adjusted EBITDA:  $353,524 (50.2%)
• Average Profit Margin:  48.8%

Part 7 – Franchisee Performance Based on Total Territories Owned (1 to 3 Territories)

• Count:  28 (27 for Fuel Costs)
• Average Gross Sales:  $390,132 (100.0%)
• Average Fuel Costs:  $18,982 (4.9%)
• Average Maintenance/Repair Costs:  $10,160 (2.6%)
• Average Payroll Costs:  $137,180 (35.2%)
• Average Adjusted EBITDA:  $113,958 (29.2%)
• Average Profit Margin:  14.57%

Part 8 – Franchisee Performance Based on Total Territories Owned (4 to 7 Territories)

• Count:  16
• Average Gross Sales:  $448,866 (100.0%)
• Average Fuel Costs:  $21,335 (4.8%)
• Average Maintenance/Repair Costs:  $12,282 (2.7%)
• Average Payroll Costs:  $156,342 (34.8%)
• Average Adjusted EBITDA:  $119,198 (26.6%)
• Average Profit Margin:  8.65%

Part 9 – Franchisee Performance Based on Total Territories Owned (8+ Territories)

• Count:  5
• Average Gross Sales:  $885,210 (100.0%)
• Average Fuel Costs:  $39,346 (4.4%)
• Average Maintenance/Repair Costs:  $23,086 (2.6%)
• Average Payroll Costs:  $289,361 (32.7%)
• Average Adjusted EBITDA:  $330,381 (37.3%)
• Average Profit Margin:  36.42%

• “Gross Sales,” as used in the tables above, includes all consideration, whether by cash, credit, in kind or otherwise, that was derived directly or indirectly from the operation of the represented Smash My Trash business.

• The above tables do not include certain costs and expenses you will incur in the categories of occupancy expenses, depreciation and amortization, and franchise fees, Royalty Fees, Brand Fund Contributions, or other fees listed in Item 6 of the Disclosure Document. Smash My Trash also does not account for interest or principal payments on loans to the business or income taxes owed by the business or its owners.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance you’ll sell as much.

Section VI – Smash My Trash Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️