Risk Score
Pending analysis
Investment Range
$67,800 - $212,500
Franchise Fee
$32,000
Total US Locations
1
Business Summary
EarthWise Hauling offers full-service hauling and junk removal, as well as demolition and debris removal. EarthWise Hauling focuses on being an eco-friendly junk removal company, serving a broad customer base that includes renters, homeowners, business owners, schools, universities, and government agencies.
Corporate History
EarthWise Hauling Franchise Group, LLC, the franchisor, was formed on May 23, 2023, as a California Limited Liability Company. Before this, the Sole Member, Joe Roth, operated an EarthWise Hauling sole proprietorship from September 2007 to December 2015. An affiliate, Earthwise Property Services, LLC, has operated businesses similar to the franchises offered since December 2015. EarthWise Hauling began offering franchises on December 4, 2023.
Financial Overview
Investment Range
$67,800 - $212,500
Franchise Fee (Low)
$32,000
Franchise Fee (High)
$40,000
Royalty %
8%
Equipment Costs (Low)
$7,200
Equipment Costs (High)
$115,900
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Financial Health Notes
EarthWise Hauling is considered undercapitalized by the franchisor, raising concerns that the company may not be able to meet its pre-opening obligations to all franchisees. The franchisor has not been in business for three years, so it cannot include all required financial statements.
Financing Details
EarthWise Hauling does not offer any direct or indirect financing to its franchisees. Additionally, EarthWise Hauling does not guarantee any notes, leases, or obligations for franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
1,175
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
EarthWise Hauling has no litigation to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
EarthWise Hauling has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, EarthWise Hauling franchisees must meet several conditions: the franchisor must still be offering EarthWise Hauling franchises, they must provide written notice between 6 and 12 months before the current term ends, they must not be in default of any agreements and must have substantially complied with all terms. Franchisees must also maintain the right to possess their approved site (or a suitable alternative), refurbish the business to current EarthWise Hauling standards, sign the then-current franchise agreement (which may have materially different terms and fees), pay a $10,000 renewal fee, and comply with current qualifications and training requirements.
Training & Support Program
Franchisor Assistance
EarthWise Hauling provides extensive assistance to its franchisees. Before opening, the franchisor approves the site, provides building specifications and mobile vehicle branding, offers a list of designated and approved suppliers for décor and initial inventory, and grants final written approval before opening. EarthWise Hauling also provides 1 day of free on-site assistance upon opening, approves the Designated Manager, and offers an initial tuition-free training program up to 5 days. Franchisees receive a confidential EarthWise Hauling Operating Manual. After opening, EarthWise Hauling assists with site approval for relocation, provides updated standards and supplier lists, offers initial training for replacement staff and managers, and may provide additional and ongoing training. EarthWise Hauling may organize an annual conference, investigate and resolve client disputes, provide continuing advisory assistance, review advertising materials, suggest pricing, and approve replacement managers.
Initial Training Hours
40
Training Location
Orange, CA
Ongoing Support
After opening, EarthWise Hauling provides continuing advisory assistance on technical, operational, sales, personnel, and accounting issues. The franchisor maintains and provides updated standards, specifications, and approved suppliers for equipment and services. EarthWise Hauling also provides initial training for replacement staff and managers, may offer additional and ongoing training programs, and may organize an annual conference for all franchisees and staff. The franchisor may review advertising materials, provide recommended pricing, and approves any replacement Designated Manager. EarthWise Hauling can also investigate and resolve client disputes if the franchisee is unable to.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
EarthWise Hauling grants franchisees a territory defined as a 10-mile radius from their Warehouse Site or an area with a population of 500,000 persons, whichever is less. For area development agreements, each additional franchise territory is also typically a 10-mile radius from the Warehouse Site or a population of 500,000 persons, whichever is less, though this may be smaller depending on the specific market area.
Staffing Notes
EarthWise Hauling requires franchisees to maintain a designated full-time, on-premise manager for their business. This manager must be approved by the franchisor, dedicate their full time and energy to operating the business, and successfully complete the initial training program. The manager is also required to sign a confidentiality, non-solicitation, and non-competition agreement. The franchisor states that the manager does not need to have an ownership interest in the franchise. Additionally, franchisees must maintain a competent, trained staff sufficient to serve customers properly, including at least one trained manager or supervisory employee on duty during all operating hours to handle daily opening and closing procedures, ensure good customer relations, and comply with the prescribed dress code.