Crushr logo

Crushr Franchise

Audited Financials
Commercial ServicesEst. 2016Louisville, KY
www.dumpstercrushr.com

Risk Score

Pending analysis

Investment Range

$149,950 - $383,050

Franchise Fee

$30,000

Min Cash Required

$25,000

Total US Locations

98

Business Summary

Crushr operates a mobile commercial on-site trash compacting business that provides waste compaction services primarily to commercial businesses, municipalities, and contractors. The purpose of Crushr's service is to help customers reduce their waste removal costs by compacting trash in dumpsters using a proprietary mobile trash pulverizer unit, called an Installed Vehicle. This process creates more space in the dumpsters, leading to fewer trips required to transport waste to landfills.

Corporate History

Smash Brothers, LLC, operating as Crushr, was founded in March 2016 as a Kentucky limited liability company. Crushr began operating its first company-owned mobile trash compacting business in November 2016 and started offering franchises in September 2017. An additional company-owned outlet opened in 2018 but closed in 2019, with its assets sold to a franchisee. Initially, franchises were offered under the name "Smash-It" from September 2017 to August 2019. In September 2019, the company transitioned to the "Crushr" brand and has been offering franchises under these marks since then.

Financial Overview

Investment Range

$149,950 - $383,050

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$49,500

Minimum Cash Required

$25,000

Royalty %

8%

Marketing %

1%

Equipment Costs (Low)

$58,000

Equipment Costs (High)

$260,000

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Crushr's financial statements received an unqualified opinion from its independent auditors, indicating that they present fairly, in all material respects, the company's financial position and cash flows. While Crushr's net income significantly decreased from 2023 to 2024, and cash and equity also saw reductions, total liabilities also decreased significantly. The company notes that it expects franchise sales to reach a saturation point, and continued growth within certain existing markets is an uncertainty. The auditors did not express any substantial doubt about Crushr's ability to continue as a going concern.

Financing Details

Crushr does not offer any direct or indirect financing to its franchisees. Additionally, Crushr does not guarantee any notes, leases, or other financial obligations for franchisees. Franchisees are responsible for securing their own funding from third-party lenders.

Performance Metrics

Total US Locations

98

Franchised Units

95

Corporate Units

3

Franchising Since

2017

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, Crushr franchisees must provide written notice to the franchisor between six and twelve months before the current term expires. At least 30 days prior to the start of a renewal term, franchisees must pay a renewal fee equal to 20% of the then-current initial franchise fee. Renewal also requires signing a new franchise agreement, which may have materially different terms, executing a general release of claims against Crushr and its affiliates, and upgrading or refurbishing the Installed Vehicle to conform to Crushr's then-current standards.

Training & Support Program

Franchisor Assistance

Crushr provides comprehensive support to its franchisees both before and after opening. Before opening, Crushr conducts an initial training program for up to two representatives at its headquarters in Louisville, Kentucky, or virtually, though franchisees cover their own travel and living expenses. Franchisees also receive a copy of the Operations Manual and a list of approved suppliers for equipment and supplies. Crushr reviews and approves the proposed site for storing the Installed Vehicle and provides a minimum pricing schedule. After opening, Crushr offers ongoing assistance and advice concerning business performance. Crushr supplies local advertising materials and requires its written approval for any franchisee-created advertising. Franchisees must contribute to a brand awareness fund and participate in any established cooperative advertising programs and all promotional campaigns. Crushr also requires franchisees to send one person to a mandatory annual national meeting, for which a fee is charged, and may offer additional mandatory or optional training courses for a fee. Each additional or replacement driver must complete Crushr's driver training program, Compaction Certification, at a daily cost plus expenses.

Initial Training Hours

69

Training Location

Louisville, Kentucky, or another designated location by Crushr, and online

Ongoing Support

After opening, Crushr provides ongoing assistance and advice concerning business performance. Crushr supplies local advertising materials and requires its written approval for any franchisee-created advertising. Franchisees must contribute to a brand awareness fund and participate in any established cooperative advertising programs and all promotional campaigns. Crushr also requires franchisees to send one person to an annual national meeting, for which a fee is charged, and may offer additional mandatory or optional training courses for a fee. Each additional or replacement driver must complete Crushr's driver training program, Compaction Certification, at a daily cost plus expenses.

Franchise Requirements

Ideal Candidate Profile

Crushr looks for franchisees who are financially and operationally qualified to develop and operate a mobile commercial on-site trash compacting business. Ideal candidates are expected to actively participate in the actual operation and supervision of their Crushr Business, devoting as much time as reasonably necessary, unless approved management personnel are employed to operate the business. In some jurisdictions, franchisees may need specific experience to qualify for necessary licenses. All owners of the franchisee entity may be required to personally guarantee the franchise obligations.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Hands-On

Territory Type

Protected

Territory Size Requirements

Crushr franchisees receive a Protected Territory that includes a minimum of 2,500 businesses, identified using NAICS codes or Crushr's industry experience. The exact size and layout of each Protected Territory can vary based on factors like the number of businesses, population count, driving distances between businesses, and other unique characteristics. Territories are adjusted to account for boundaries like streets, highways, counties, geographic barriers, and zip codes, and these details are specified in each Franchise Agreement.

Staffing Notes

Crushr requires franchisees to staff their business with a sufficient number of employees to maximize revenues and profits, but franchisees are not permitted to operate solely with temporary or subcontracted labor. Any additional or replacement drivers hired by a Crushr franchisee must successfully complete Crushr's specific driver training program, known as Compaction Certification. The franchisee is responsible for the costs associated with this training, including instructor fees and the driver's or instructor's travel and living expenses, depending on the training location.