1-800-GOT-JUNK Franchise
Audited FinancialsRisk Score
Investment Range
$168,800 - $258,150
Franchise Fee
$65,000
Min Cash Required
$59,000
Total US Locations
149
Business Summary
1-800-GOT-JUNK? operates retail junk removal businesses that serve both residential and commercial clients in the United States. The company uses a proprietary system, including specialized software, brand development, training, marketing programs, and a central call center and online booking system (Sales Center) to manage appointments and customer interactions. 1-800-GOT-JUNK? focuses on removing non-hazardous junk that is not part of normal municipal pick-up, rather than regular trash collection or hazardous waste hauling.
Corporate History
1-800-GOT-JUNK? LLC was formed on October 1, 1998, in Delaware and began offering franchises for retail junk removal businesses in the United States in November 1999. The company has no other business activities and has not operated businesses of the type being franchised. 1-800-GOT-JUNK? LLC is a subsidiary of Rubbish Boys Disposal Service Inc., a Canadian corporation that founded the concept in 1989 and has been offering franchises in Canada since December 1998.
Financial Overview
Investment Range
$168,800 - $258,150
Franchise Fee (Low)
$65,000
Franchise Fee (High)
$81,250
Minimum Cash Required
$59,000
Royalty %
8%
Marketing %
8%
Equipment Costs (Low)
$149,924
Equipment Costs (High)
$157,400
Working Capital
$67,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
1-800-GOT-JUNK? LLC's audited financial statements for the years ended December 31, 2023, and 2022, received an unqualified opinion from independent auditors, indicating that the statements present the company's financial position fairly. No going concern qualification was noted in these audited statements. However, as of March 31, 2024, the company disclosed a pending putative class action complaint alleging privacy violations, with aggregate claims potentially exceeding $5,000,000. While the potential outcome is not yet determinable, this represents a significant contingent liability for 1-800-GOT-JUNK? LLC.
Financing Details
1-800-GOT-JUNK? generally does not offer financing. However, at its sole discretion, it may allow franchisees to pay the initial franchise fee for some subterritories in equal monthly installments for up to 24 months, with no down payment (for the financed portion) and no interest if payments are made on time. If payments are late, interest will accrue at 24% per annum or the maximum legal rate. All owners of an entity franchisee must personally guarantee these installment payments. 1-800-GOT-JUNK? may also, in its discretion, introduce franchisees to third-party financing sources, but it does not guarantee any debts, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
149
Franchised Units
133
Corporate Units
16
Avg Square Footage
350
Franchising Since
1999
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
1-800-GOT-JUNK? is currently involved in one pending class action lawsuit. This lawsuit, filed on January 9, 2024, in the U.S. District Court for the Central District of California, alleges that 1-800-GOT-JUNK? and its agents violated the California Invasion of Privacy Act by recording phone calls of California customers without enough consent. The plaintiff is seeking statutory damages, costs, and injunctive relief. 1-800-GOT-JUNK? denies these allegations and intends to vigorously defend against the claim. There is no other litigation required to be disclosed.
Bankruptcy History
1-800-GOT-JUNK? has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, 1-800-GOT-JUNK? franchisees must provide written notice between nine and twelve months before the current term expires. They must be in full compliance with the current agreement, including meeting minimum performance standards and having no history of habitual defaults. Franchisees will need to sign 1-800-GOT-JUNK?'s then-current franchise agreement, which may have materially different terms and rates, and pay a non-refundable renewal fee of $7,500. Additionally, franchisees may be required to upgrade or repaint their vehicles to meet current brand standards and execute a general release of claims against 1-800-GOT-JUNK? and its related parties for the expiring term.
Training & Support Program
Franchisor Assistance
Before a 1-800-GOT-JUNK? business opens, the franchisor designates a protected territory and provides artwork for advertising, a list of approved suppliers for marketing materials, vehicles, dump bodies, signage, and uniforms. Franchisees receive an initial inventory of supplies, electronic access to the confidential Operations Manual, and an initial training program for the Principal Operator and other required owners. During operation, 1-800-GOT-JUNK? coordinates the Sales Center and provides access to the CRM System. It manages the Sales, Marketing and Technology Fund, provides marketing materials (at franchisee's cost), and offers general advice, assistance, and field support. The franchisor also conducts periodic inspections and may coordinate additional training programs (at franchisee's cost).
Initial Training Hours
74
Training Location
Vancouver, BC, or another location to be determined
Ongoing Support
1-800-GOT-JUNK? provides ongoing support to its franchisees after they open. This includes providing electronic access to the confidential Operations Manual, coordinating the Sales Center for order processing, and granting access to the CRM System (proprietary intranet). The franchisor administers the Sales, Marketing and Technology Fund, and provides marketing materials and sales aids as they are developed (at franchisee's cost). 1-800-GOT-JUNK? coordinates and conducts periodic training programs for franchisees and their employees as deemed necessary (at franchisee's cost). Franchisees also receive general advice, assistance, and field support to aid in the ongoing operation, advertising, and promotion of their businesses, including a minimum of one field visit per year.
Franchise Requirements
Ideal Candidate Profile
1-800-GOT-JUNK? seeks individuals to operate its junk removal businesses who possess specific personal attributes. Franchisees must appoint a Principal Operator who owns a minimum beneficial share ownership (generally 20%) in the business and who must dedicate their full time, attention, and effort to the Franchised Business. This Principal Operator is responsible for direct, day-to-day supervision of operations. The franchisor emphasizes the importance of the individual or collective character, skill, aptitude, attitude, business ability, and financial capacity of its franchisees and their owners.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
1-800-GOT-JUNK? defines its territories by developing geographic areas with populations between 62,500 and 75,000, based on the most recently published U.S. Census Bureau data. Each franchise territory consists of a minimum of eight of these geographic areas, with each area being considered a 'subterritory'.
Staffing Notes
1-800-GOT-JUNK? franchisees are solely responsible for selecting, hiring, and properly training all employees for their businesses. Franchisees must maintain a sufficient number of properly trained employees to service customers and ensure that all personnel achieve and maintain the necessary skill, knowledge, and certification for delivering services. Before hiring, franchisees must conduct full background checks, including citizenship and criminal records checks. Employees are required to wear specific uniforms, maintain a neat and clean appearance, and provide courteous service. The franchisor may also require employees to attend its training programs.