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

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

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

Section III – Number of franchised and company-owned Crushr 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 Crushr franchise opportunity

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

• 2021 gross sales, imputed royalty fees, brand fund contribution, local area advertising and technology fees, cost of goods sold, gross profit, labor expense, insurance, miscellaneous expenses, and net income for the one company-owned Crushr outlet that was in operation in and around Louisville, Kentucky, including portions of southern Indiana, for the entirety of the 2021 calendar year

• 2021 annual gross sales and number of territory/trucks for the 10 franchised Crushr outlets that were in operation for the entirety of the 2021 calendar year

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

Section I – Crushr Franchise Costs

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

• Initial Franchise Fee:  $49,500
• Local Area Advertising Requirement (3 months):  $1,500
• Rent (3 months, plus security deposit):  $100 to $500
• Utility Security Deposits:  $0 to $500
• Mobile Pulverizer & Installed Vehicle:  $48,000 to $280,000
• Installed Vehicle Transportation:  $1,500 to $5,500
• Technology Fee (3 months):  $1,050
• Computer and Office Equipment and Supplies:  $100 to $1,000
• Travel Expense for Initial Training:  $1,000 to $3,000
• Grand Opening Marketing (3 months):  $3,000
• Insurance:  $1,500 to $3,600
• Professional Fees:  $750 to $2,750
• Permits and Licenses:  $250 to $1,000
• Additional Funds (3 months):  $20,000 to $30,000
• Total Estimated Crushr Franchise Costs:  $128,250 to 382,900

Section II – Crushr’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Crushr’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 or Minimum Continuing Fee:  the greater of 8% of Gross Sales or a Minimum Continuing Fee equal to: $0 for the first 6 months after delivery of the Installed Vehicle; $500 per month for months 7 to 12 after delivery of the Installed Vehicle; $1,000 per month for months 13 and beyond after delivery of the Installed Vehicle
• Brand Fund:  minimum of 1% of Gross Sales per month
• Local Advertising Expenditure:  minimum of $500 per month
• Cooperative Advertising:  currently, there are no advertising co-ops. If advertising co-ops are established by Crushr, you may be required to contribute up to 2% of total Gross Sales, as approved by a majority vote of the members of the co-op.

Section III – Number of Franchised and Company-Owned Crushr Outlets

Franchised

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  4
• Net Change:  +1

2020

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  14
• Net Change:  +10

2021

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  25
• Net Change:  +11

Company-Owned

2019

• Outlets at the Start of the Year:  2
• 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:  1
• Net Change:  0

2021

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

Section IV – News Updates on the Crushr Franchise

• Own a Crushr Franchise – Up and Running in 90 Days

• Crushr Did Not Rank on Entrepreneur’s 2022 Franchise 500 List

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

Part 1 – Company-Owned Outlet Statement of Income and Certain Expenses (2021)

• Crushr has operated one Crushr Business similar to the ones offered under the Disclosure Document since January of 2017. Throughout this Item 19, Crushr refers to this as the “Company-Owned Outlet”.

• Presented in Part 1 of this Item 19 is a summary of income and certain expenses showing the Company-Owned Outlet’s historical results from January 1, 2021 to December 31, 2021 (the “Measurement Period”). Throughout the Measurement Period, Crushr’s Company-Owned Outlet was operating in and around Louisville, Kentucky, including portions of southern Indiana. The Company-Owned Outlet serviced Qualified Businesses in an area approximately the size of a Protected Territory Crushr would grant to a franchise outlet in this area.

• Crushr’s Company-Owned outlet operated one Installed Vehicle in this area full-time during the Measurement Period.

• The summary of income and certain expenses has not been audited, reviewed, or verified by an independent accountant.

• Except as discussed in the notes below, the Company-Owned Outlet operates in a substantially similar manner to how your Crushr Business will operate, though Crushr expects there may be variances between your Crushr Business and the Company-Owned Outlet based upon factors such as geographic location, length of time in operation, relative experience of the operator, and the number of Installed Vehicles in operation.

• Gross Sales:  $247,512 (100.0%)
• Royalty Fees:  $19,801 (8.0%)
• Brand Fund Contribution:  $2,475 (1.0%)
• Local Area Advertising:  $6,000 (2.4%)
• Technology Fees:  $4,200 (1.7%)
• Cost of Goods Sold:  $17,155 (6.9%)
• Gross Profit:  $197,881 (79.9%)
• Labor Expense:  $75,676 (30.6%)
• Insurance:  $6,367 (2.6%)
• Miscellaneous Expenses:  $2,612 (1.1%)
• Total Expense:  $85,468 (34.5%)
• Net Income:  $112,413 (45.4%)

• The “Net Income” figures represented above do not include certain costs and expenses you will incur in the categories of depreciation, amortization, interest or principal payments on loans to the business, or income taxes owed by the business or its owners.

• “Gross Sales” means the aggregate gross amount of all revenues from whatever source derived (whether in the form of cash, credit, agreements to pay or other consideration, and whether or not payment is received at the time of sale or any such amounts prove uncollectible) from providing mobile trash compacting services by the Company-Owned Outlet.

• The Company-Owned Outlet does not pay the Royalty Fee (8% of Gross Sales), the Brand Fund Contribution (1% of Gross Sales), the Technology Fee ($350 per month), or the $500 per month Local Area Advertising Requirement. Crushr has included an estimate of these fees for the Company-Owned Outlet in the table above and the “Gross Profit” and “Net Income” figures include these fees as an imputed expense to the Company-Owned Outlet as if they were actually paid during the Measurement Period.

• The Company-Owned Outlet did not incur any expenses related to storage of its Installed Vehicle because it had access to rent-free storage at an existing facility. You are likely to incur expenses for storing your Installed Vehicle. Other than this, there are no other material financial or operational characteristics of the Company-Owned Outlet that are different from the anticipated future operations of Crushr franchise outlets.

• The Company-Owned Outlet has been in operation since 2017. The expenses listed above do not reflect other expenses you may incur as a new business, such as legal and accounting fees, the purchase price of the Installed Vehicle, the Franchise Fee, travel expenses for training, payroll costs you may incur prior to opening your Crushr Business, and other initial start-up costs that are customary for a new business.

• “Gross Sales” means the aggregate gross amount of all revenues from whatever source derived (whether in the form of cash, credit, agreements to pay or other consideration, and whether or not payment is received at the time of sale or any such amounts prove uncollectible) from providing mobile trash compacting services by the Franchised Outlets.

Part 2 – Gross Sales for Disclosed Franchise Outlets (2021)

• In Part 2 of this Item 19, Crushr presents the total Gross Sales attained during the Measurement Period for the 10 franchisee-owned outlets that were in operation for the entirety of the Measurement Period (the “Disclosed Franchise Outlets”).

• Crushr obtained these historical financial results from the profit and loss reports submitted by the Disclosed Franchise Outlets, and an outlet’s continuous operation throughout the Measurement Period is the only criteria Crushr used for inclusion in this Part 2. Neither Crushr nor a certified public accountant has independently audited or verified the information.

2021 Gross Sales

• Franchisee Outlet #1:  $698,940 (4 Territories/4 Trucks)
• Franchisee Outlet #2:  $370,047 (1 Territory/1 Truck)
• Franchisee Outlet #3:  $157,066 (1 Territory/1 Truck)
• Franchisee Outlet #4:  $155,245 (1 Territory/1 Truck)
• Franchisee Outlet #5:  $147,239 (1 Territory/1 Truck)
• Franchisee Outlet #6:  $145,530 (1 Territory/1 Truck)
• Franchisee Outlet #7:  $136,649 (1 Territory/1 Truck)
• Franchisee Outlet #8:  $96,749 (1 Territory/1 Truck)
• Franchisee Outlet #9:  $92,761 (1 Territory/1 Truck)
• Franchisee Outlet #10:  $88,114 (1 Territory/1 Truck)
• Average Gross Sales Per Franchisee Outlet (10 Franchisee Outlets):  $208,834
• Average Gross Sales Per Territory (13 Territories):  $160,642

• “Gross Sales” means the aggregate gross amount of all revenues from whatever source derived (whether in the form of cash, credit, agreements to pay or other consideration, and whether or not payment is received at the time of sale or any such amounts prove uncollectible) from providing mobile trash compacting services by the Franchised Outlets.

• The figures presented for the Company-Owned Outlet above were generated by an Outlet that operates in the Louisville, Kentucky area where the Crushr brand has achieved significant recognition. If your Crushr territory is located outside of this market, it may not enjoy the same level of brand recognition or customer awareness.

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

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