Everyone has junk in their homes that they want to get rid of. Like those old BBQ grills and torn up couches and television sets. And who do homeowners call to haul all this stuff out of their garages or backyards? The junk removal guys (or gals), of course. And you might be surprised to learn junk removal is a $10 billion industry in the United States.

1-800-GOT-JUNK is one of those companies people call for help. This company started in Canada and eventually made their way over in the United States with over 30 years in the business and reported revenues of more than $300 million per year.

How much does it cost to open a 1-800-GOT-JUNK Franchise? To be a part of this junk removal company, be prepared to have a liquid capital of $15,000 to $50,000 and a net worth of $30,000 to $50,000. Expect the initial investment between $161,000 to $243,330 and the franchise fee of $65,000 to $97,500.

Wondering what it would be like to operate a 1-800-GOT-JUNK? Read on below to find out the financial requirements this company needs from you, what to expect when you franchise with them. Take out 7-minute franchise quiz and find out if 1-800-GOT-JUNK is the right business franchise for you.

Financial Requirements and Fees

The following below are the financial requirements that 1-800-GOT-JUNK looks for in their franchise applicants:

In addition, 1-800-GOT-JUNK requires a royalty fee of 8% and ad royalty fees of 1%. The term of agreement to run a 1-800-GOT-JUNK is 5 years.

Average Sales / Revenue per Year

There is no official information as to how much 1-800-GOT-JUNK’s revenue is annually but according to companies franchise website, the company has already reached $500+ million in annual sales.

Based on the performance of eight franchise locations, franchises operating between 12 – 24 months averaged more than $2 million in gross sales. Based on the average gross sales of six franchise units operating 24 – 36 months, the average franchisee made more than $1.8 million gross.

Out of 109 franchisees that have been in business more than 72 months, franchise owners grossed more than $2.5 million each per year. If you’re able to stay in business and build a local base of clients, you can expect to do very well with this franchise longterm.

1-800-GOT-JUNK Franchise Facts

1-800-GOT-JUNK started in 1989 by Brian Scudamore in Canada. But before getting that name, he started out as The Rubbish Boys as a one man business. Scudamore was only 19 years old when he started the business and invested $1,000 to start his junk-hauling service.

1-800-GOT-JUNK is part of two other businesses owned by Scudamore as well and is under the company name O2E Brands which means ‘Ordinary to Exceptional’. The other businesses are known as WOW 1 Day Painting, which offers paint services and Shack Shine offering house detailing.

The services that 1-800-GOT-JUNK offers are the following:

• Household Clutter Removal & Clean Up
• Pre & Post Moving Junk Removal
• Pre & Post-Renovation Cleaning Service
• Storage Unit Cleanout Services
• Emergency Disaster Cleanup Services
• Commercial Services (Storage unit cleanouts, construction materials, office cleanouts, rental unit cleanouts, real estate junk removal and property cleanup, restoration and renovation debris removal)

The junk that 1-800-GOT-JUNK may remove from your property are the following:

• Electronics (E-waste)
• Appliances
• Bicycles
• Carpeting & Rugs
• Construction Waste
• Furniture
• Hot Tubs
• Mattresses & Box Springs
• Refrigerators & Freezers
• Scrap Metals
• Televisions
• Tires & Rubber
• Household Trash
• Yard Waste
• Garbage & Refuse
• General Rubbish
• Glass
• Exercise Equipment
• Pool Tables
• Pianos
• Dumpster Alternative
• Junk
• BBQ & Grills
• Playsets & Trampolines
• Computer & Notebooks
• Printer, Scanners & Copiers
• Monitors & Displays

The demand for 1-800-GOT-JUNK and related services like dumpster rentals landed them a spot on Entrepreneur’s 2022 Franchise 500 Rank. They’ve recorded a 2.6% growth for the brand in 3 years. They’re also recognized by The Wall Street Journal, Forbes, The Globe and Mail, Blue Collar Millionaires, Fox Business, MSNBC’s Your Business, and were even featured on The Oprah show. 1-800-GOT-JUNK has done well with obtaining valuable PR over the years.

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1-800-GOT-JUNK operates on most days. Their call center is available 24 hours a day, 7 days a week. Online booking is also accepted should customers prefer to schedule an appointment.

At present, 1-800-GOT-JUNK has limited slots left for franchising. They are only accepting inquiries from Colorado, Florida, Georgia, Maryland, New Jersey, and Texas. This is why they recommend you send in your inquiry at once via the form located below in this link. More details regarding their franchising process will only be disclosed with you once you submit your inquiry.

How Much Does 1-800-GOT-JUNK Make in Profit?

According to data, 1-800-GOT-JUNK franchisees operating for more than 12 months but less than 24 months had an average gross sales of $2,025,461.

According to industry experts, you can expect to make 20% in profit from each service. This is the profit left over after considerings taxes, wages, gas to a location, and other operating expenses. This means you would net more than $200,000 annually if you had a franchise that did $2 million in gross sales.

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Advantages of 1-800-GOT-JUNK Franchise

There are many advantages that a 1-800-GOT-JUNK franchise has to offer. Here are some of the things you can expect.

No Contact Junk Removal

The pandemic has changed the way we go about our business. There is a need to be more careful to protect both the customers and the staff in the workplace. 1-800-GOT-JUNK offers a no contact junk removal service so that business may still continue and at the same time ensure that everyone is protected. The safety measures include social distancing and making sure both parties are healthy. Contactless payments are also available.

Such a service is advantageous and goes to show how 1-800-GOT-JUNK is capable of thinking ahead and will do necessary and safe changes to ensure the business is still running. This also means your business will keep running even if the government locks down other industries like restaurants.

Demand

There is a demand for waste management. It is expected that the waste management market size will reach $ 2,483.0 billion by 2030 with a compound annual growth rate (CAGR) of 3.4% from 2021 to 2030. With this information, you can deduce that being in the trash disposal and junk removal business will be advantageous for you in the long run.

Coupled by the fact that even 1-800-GOT-JUNK themselves claim that there are only limited slots for franchising left, it just goes to show how in demand this business is.

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Variety of Services

1-800-GOT-JUNK doesn’t just remove junk from homes but they also offer several services such as office cleanouts, storage clean-outs, and dumpster rentals. The variety of services will appeal to your customers, making you their go-to service for anything junk removal related. This way, they won’t have to call a separate service because 1-800-GOT-JUNK can complete just about any residential or commercial junk removal.

Locations

1-800-GOT-JUNK has a number of locations not just in the United States but in Canada and Australia as well. This expansion goes to show that they have a strong brand and a stable business model. Hopefully, they’ll get to branch out in other countries in the near future too.

Challenges of a 1-800-GOT-JUNK Franchise

Every business has its set of challenges and we’re here to let you know what 1-800-GOT-JUNK’s challenges are so you can expect them and prepare for them.

Mixed Reviews

There has been mixed reviews on the quality of service and pricing for 1-800-GOT-JUNK. The business page showed there were customers availing of their service and some of them were complaining about how expensive it was just for a simple job. There were complaints of the movers being late, others complained about having poor customer service, and unethical work methods.

If you end up operating a 1-800-GOT-JUNK, make sure to stay on time as best as you can. While 1-800-GOT-JUNK, does charge higher prices than ma-and-pa junk removal services, it also helps the company remain more profitable than competitors.

Though the company also has good reviews, the bad reviews should still be taken into consideration. So if you’re planning on franchising with them, make sure to monitor closely the service they provide so as not to receive more complaints.

No Upfront Quotation

When customers call 1-800-GOT-JUNK for a quotation, they won’t be able to give it to you after the job is done. This can be quite disappointing because customers aren’t able to weigh just how much the service cost.

Prices will also vary depending on the size of the truck or how much junk will take up the space of the truck.

There is a base price that 1-800-GOT-JUNK can provide to customers so they can estimate their expenses. But according to some reviews, these prices also change by the time a job is done. No upfront quotes will be a frequent complaint among customers so be prepared to respond to and address this concern.

Is the 1-800-GOT-JUNK Franchise Right For You?

1-800-GOT-JUNK seems like a good deal for franchisees but the pricing can be steep. Not to mention, the availability of 1-800-GOT-JUNK is limited due to the demand for junk removal services.

Should you invest in a 1-800-GOT-JUNK franchise or go solo? As stated above, founder Brian Scudamore invested only $ 1,000 for 1-800-GOT-JUNK. Though that would probably cost more in this day and age, it would still be affordable to go solo than to franchise.

However, you would need to heavily market your business by posting up ads and sending out fliers which can be quite expensive and time consuming. It’s up to you whether you would prefer doing a one-man job or franchise 1-800-GOT-JUNK so you can have the whole package and just focus in running the business.

One thing to keep in mind is that you could open your own junk removal company without paying the franchise fees. If you have a truck and muscle that can remove large appliances like refrigerators and other household items, that’s really all you need to get started in this business.

The advantage joining 1-800-GOT-JUNK is the proven marketing plan and brand. This company will help you generate business more quickly by sourcing business and allowing customers to book services more easily through an online website.

What is an alternative 1-800-GOT-JUNK franchise?

One junk removal business to check out is Two Men and a Truck. They’ve been in business since 1985 and claims to have $ 2.5 million in average sales. They also have a 94% rating in Franchise Business Review for the year 2021.

The initial investment to franchise Two Men and a Truck is $100,000 to $550,000 and the franchise fee is $30,000.

They say one man’s trash is another man’s treasure and if you’re in the business of junk removal like 1-800-GOT-JUNK, you may definitely find treasure in people’s junk. I hope this guide on how to franchise 1-800-GOT-JUNK is helpful and can help you decide on franchising this business.