Heavyweight Waste Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$570,050 - $757,200
Franchise Fee
$30,000
Total US Locations
30
Business Summary
Heavyweight Waste provides mobile commercial, industrial, and construction waste removal services. The business utilizes custom roll-off trucks and open-top containers to service customers in its designated territory.
Corporate History
Heavyweight Waste Franchise Partners, LLC was established in Indiana on March 22, 2021, and began offering Heavyweight Waste® franchises in May 2021. Although Heavyweight Waste Franchise Partners itself has not operated Heavyweight Waste businesses, its affiliates have been involved in such operations since 2021. The company's parent is SMT Holdings, LLC. An affiliate, Smash Franchise Partners, LLC, has offered 'Smash My Trash®' mobile waste compaction services franchises since August 2018, growing to approximately 504 franchised businesses by December 31, 2024. Other affiliates provide various services and supplies for franchisees, including waste compaction, truck parts, container supply, truck assembly coordination, and broker services.
Financial Overview
Investment Range
$570,050 - $757,200
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$52,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$447,200
Equipment Costs (High)
$575,700
Working Capital
$80,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Heavyweight Waste Franchise Partners has a negative member's deficit, meaning its liabilities exceed its assets. As of December 31, 2024, the member's deficit was $(516,006), which is an improvement from $(583,751) in 2023. Despite the unqualified audit opinion on its financial statements, the FDD explicitly states that the franchisor's financial condition raises questions about its financial ability to provide services and support to franchisees.
Financing Details
Heavyweight Waste Franchise Partners does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
30
Franchised Units
14
Corporate Units
16
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Heavyweight Waste Franchise Partners and its affiliates are involved in several legal disputes. Three cases are currently pending: one involves former Smash My Trash franchisees alleging fraud and breach of contract, where an arbitrator denied claims but a motion to vacate is in federal court; another involves former Smash My Trash franchisees alleging fraudulent misrepresentation, violations of Indiana's Franchise Act, and tortious interference, seeking substantial damages; and a third involves a dispute with former owners of the parent company, SMT Holdings, alleging misrepresentation of value and fraud, which is currently under appeal after a summary judgment in favor of Justin Haskin and an award of legal fees to him. Two cases have concluded: an arbitration proceeding with former Smash My Trash franchisees found misrepresentations in Item 19 of their disclosure document, leading to an award of over $2.8 million against Smash Franchise Partners and Justin Haskin in May 2022; and the Washington Securities Administrator entered a consent order in July 2024 with Smash Franchise Partners and Justin Haskin regarding alleged antifraud violations in Smash My Trash franchise sales, resulting in a cease and desist order and payment of investigation costs.
Bankruptcy History
Heavyweight Waste Franchise Partners has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Heavyweight Waste franchise, franchisees must provide written notice to Heavyweight Waste Franchise Partners between 12 and 15 months before their initial agreement ends. They must have fully complied with all obligations throughout the initial term and continue to be in full compliance at the time of renewal. Additionally, before the successor franchise begins, franchisees must have renovated or remodeled their business and parking locations, added or replaced operating assets, and updated the business to meet Heavyweight Waste Franchise Partners' then-current requirements for new franchises. Upon meeting these conditions, franchisees must sign the franchisor's current form of franchise agreement (which may have different terms and fees), pay a successor franchise fee of $10,000, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Heavyweight Waste Franchise Partners provides a range of support services. Before a business opens, it helps approve a suitable territory, coordinates the sale of initial trucks, containers, and computer system components, and reviews lease agreements and construction plans. Heavyweight Waste Franchise Partners also provides an initial brand standard training program for the Principal Executive and General Manager, and grants access to its Operations Manual. During the operation of the business, Heavyweight Waste Franchise Partners monitors the number of trucks to ensure customer demand can be met, sells additional containers and, if needed, additional trucks. It offers periodic advice on operations, standards, pricing, purchasing, and administrative procedures, and provides updates to the Operations Manual and System Standards. Heavyweight Waste Franchise Partners also maintains and administers a Brand Fund and the System Website, and may establish and administer a National Accounts program which franchisees must participate in. Customer services, which may include booking systems and remote payment processing, may also be provided, potentially with additional fees.
Initial Training Hours
37
Training Location
Heavyweight Waste Franchise Partners' facility in Carmel, Indiana, or virtually
Ongoing Support
Heavyweight Waste Franchise Partners offers ongoing support throughout the franchise agreement term. This includes periodic advice on business operations, standards, pricing, purchasing, and administrative and accounting procedures. The franchisor provides updates to the Operations Manual and System Standards as they are implemented. It also maintains and administers a Brand Fund for marketing and the System Website. Heavyweight Waste Franchise Partners may establish and administer a National Accounts program that franchisees must participate in. Additionally, the franchisor may require franchisees and their personnel to attend various ongoing training courses and programs, including online training, and conventions, for which fees may be charged in the future. Special guidance or assistance requested by franchisees may also be provided for an additional fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Staff Count
3
Territory Size Requirements
Heavyweight Waste Franchise Partners defines its territories using geographic boundaries and population data provided by a third-party mapping service, primarily based on zip codes. Each territory typically has a minimum population of approximately 200,000 people. If a territory significantly exceeds this population, Heavyweight Waste Franchise Partners may charge an additional fee.
Staffing Notes
Heavyweight Waste Franchise Partners initially anticipates a core staffing structure including one owner, one salesperson, and one driver to operate the business. All employees who have access to confidential information related to the business must sign confidentiality agreements. Additionally, drivers are required to comply with all regulatory and safety requirements, which include drug tests, travel log compliance, and Department of Transportation inspections.