JUNKCO+ logo

JUNKCO+ Franchise

Audited Financials
Home ServicesEst. 2018Ann Arbor, MI
www.junkcoplus.com
Financing Available

Risk Score

Pending analysis

Investment Range

$163,610 - $297,760

Franchise Fee

$20,000

Total US Locations

1

Business Summary

JUNKCO+ provides junk removal, hauling, and exterior demolition services for both residential and commercial customers. A JUNKCO+ franchised business can be operated from a home or a commercial location.

Corporate History

JUNKCO+ International, LLC was formed in January 2024 and began offering franchises in February 2024. The business concept originated from Junkco, LLC, a predecessor that operated a similar junk removal business since 2018. The founder of Junkco, LLC is now the President of JUNKCO+ International, LLC. In December 2023, an affiliate purchased Junkco, LLC's assets and rebranded its location to JUNKCO+. JUNKCO+ International, LLC is part of the larger BELFOR Franchise Group.

Financial Overview

Investment Range

$163,610 - $297,760

Franchise Fee (Low)

$20,000

Franchise Fee (High)

$55,000

Royalty %

8%

Marketing %

2%

Equipment Costs (Low)

$92,000

Equipment Costs (High)

$112,000

Working Capital

$22,500

Audited Financials

Yes

Offers Financing

Yes

Audit Opinion

Unqualified opinion

Financial Health Notes

The financial condition of Junkco+'s guarantor, BFG Holdco, Inc., raises concerns about its ability to provide services and support. BFG Holdco, Inc. has reported significant consolidated net losses for three consecutive years, including large goodwill impairments attributed to deteriorating economic conditions and strategic shifts to reduce its franchise network size due to noncompliance issues. The company's stockholders' equity has also declined significantly.

Financing Details

JUNKCO+ may offer financing for a portion of the initial franchise fee, depending on the franchisee's qualifications. For standard franchises, JUNKCO+ may finance up to 50% of the initial franchise fee, requiring a minimum 50% down payment. For conversion franchises, JUNKCO+ may finance up to 75% of the initial franchise fee, with a minimum 25% down payment. Both options come with a 9% annual interest rate for a term of up to three years (36 months). A personal guarantee from the franchisee, owners, and their spouses is required. Franchisees can prepay the note without penalty. JUNKCO+ is also eligible for SBA loan processing.

Performance Metrics

Total US Locations

1

Franchised Units

0

Corporate Units

1

Avg Square Footage

500

Franchising Since

2024

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their JUNKCO+ franchise, franchisees must be in good standing with the Franchise Agreement and not have repeatedly defaulted. They need to provide timely notice of their intent to renew, sign JUNKCO+'s then-current franchise agreement (which may have materially different terms), upgrade and remodel the business as necessary, sign a general release (which may change at JUNKCO+'s discretion), and pay a renewal fee.

Training & Support Program

Franchisor Assistance

JUNKCO+ provides various forms of assistance to its franchisees. Before opening, JUNKCO+ designates a protected territory and provides an Initial Package containing branding materials and a convention allowance. It also loans the Operations Manual, approves business forms and advertising, specifies insurance requirements, offers initial training, and provides a business phone number. After opening, JUNKCO+ offers ongoing access to operational information, guidance on new products and services, support for purchasing supplies, and assistance with marketing and financial operations. It also provides general business and marketing advice, supports its required franchise software, offers periodic modifications to the Operations Manuals and System Standards, and conducts periodic refresher training courses and conferences.

Initial Training Hours

31

Training Location

Corporate headquarters in Ann Arbor, MI, or another designated location

Ongoing Support

JUNKCO+ provides ongoing support to its franchisees after opening through access to operational information based on reports and inspections. JUNKCO+ offers guidance on new products, services, and methods, the purchase and use of supplies and products, and the formulation and implementation of marketing and advertising programs. Franchisees also receive advice on the financial and daily operation of their business, general business and marketing advice, and support for the required franchise software management system. JUNKCO+ issues periodic modifications to the Operations Manuals and System Standards, and offers periodic refresher training courses and conferences, not exceeding one per year, which franchisees are required to attend.

Franchise Requirements

Ideal Candidate Profile

An ideal JUNKCO+ franchisee is an individual or entity capable of designating a full-time Managing Owner or Designated Manager. This designated person must successfully complete initial training and continuously dedicate their full-time efforts to managing, promoting, and enhancing the JUNKCO+ business, and must not engage in any other conflicting business or activity. The franchisee must also be able to hire at least one Service Technician before commencing operations. JUNKCO+ offers discounts to qualified veterans and first responders.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Full-Time

Territory Type

Non-Exclusive

Staff Count

2

Territory Size Requirements

Each JUNKCO+ franchise territory is defined by specific zip codes and will include a population of between 450,000 and 550,000 people. Franchisees may purchase additional population for their territory, up to a maximum of 600,000 people, at a cost of $0.20 per person.

Staffing Notes

JUNKCO+ franchisees must employ at least one person who has completed the initial training, which can be the franchisee themselves. Before opening, the franchisee must also hire one Service Technician responsible for performing junk removal and other services. Additionally, each truck in operation requires a driver and a navigator; the Managing Owner can fulfill one of these roles to reduce staffing needs. JUNKCO+ requires all Service Technicians, Managing Owners, Designated Managers, and sales/account management employees to sign non-disclosure and confidentiality agreements upon employment.