Junkluggers Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$39,700 - $359,160
Franchise Fee
$15,000
Total US Locations
177
Business Summary
The Junkluggers operates a business that provides residential and commercial "eco-conscious" junk removal services. These services focus on diverting waste from landfills through recycling, reusing items, and donating them to charitable organizations. The franchise also offers second-hand goods and furniture procurement, restoration, and retail services under its Remix Market brand, which can be operated virtually, through pop-up locations, or from a leased/owned premises. The business combines both junk removal and second-hand retail services.
Corporate History
The Junkluggers brand began its franchising journey in December 2012 through its predecessor franchisor, Junkluggers Franchising, LLC (JFL). In December 2022, Authority Brands, Inc. acquired JFL. Following this acquisition, Junkluggers Franchising SPE LLC, the current franchisor, was formed on December 30, 2022, as part of a secured financing transaction. All existing franchise agreements and intellectual property were transferred to this new entity by December 31, 2022. The current Junkluggers Franchising SPE LLC officially started offering franchises on January 17, 2023. The ultimate majority owner of The Junkluggers is Funds advised by Apax Partners, LLP.
Financial Overview
Investment Range
$39,700 - $359,160
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$55,159
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$6,400
Equipment Costs (High)
$108,400
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for AB Assetco LLC, the guarantor of The Junkluggers' obligations, show a net loss of $14,362 in 2024 and a very low cash balance of $51 for the same year. The indirect parent company, Authority Brands Inc., has reported significant net losses for the past three years, totaling $104,486 in 2024, and carries substantial long-term debt of $551,538. Despite these financial indicators, the independent auditors issued an unqualified opinion for both AB Assetco LLC and Authority Brands Inc., indicating no substantial doubt about their ability to continue as a going concern.
Financing Details
The Junkluggers offers financing for a portion of the initial franchise fee. For Start-Up Franchises, up to 75% of the Franchise Fee and any Additional Population Fee can be financed, payable in up to 36 monthly installments at a 12% annual interest rate. Prepayment is allowed without penalty. For Conversion Franchises, 100% of the Franchise Fee (less a $5,000 Conversion Down Payment) can be financed. Payments on this promissory note begin five years after the agreement, with 48 monthly installments at 12% per annum. A significant portion of this balance (50% to 100%) may be forgiven based on the franchise's performance in its fifth year of operation compared to its pre-conversion gross revenue, or based on specific gross revenue thresholds if pre-conversion revenue was below $600,000. All financing requires signing a Promissory Note, Guaranty, and granting a Security Interest in the business's assets. The Junkluggers does not offer financing for transactions involving brokers or referral sources, nor does it provide financing for anything other than the franchise fee.
Performance Metrics
Total US Locations
177
Franchised Units
173
Corporate Units
4
Avg Square Footage
3,250
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Junkluggers has no litigation to report, as no litigation is required to be disclosed in Item 3 of its FDD document.
Bankruptcy History
The Junkluggers has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its FDD document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, The Junkluggers franchisees must provide written notice of their desire to renew between six and twelve months before the agreement's expiration date. They must be in good standing, without any defaults in their agreements with the franchisor, its affiliates, or approved vendors, and maintain a strong record of customer service and compliance with Brand Standards. Franchisees must also be on good terms with the franchisor, including having no litigation. They will be required to sign the franchisor's then-current franchise agreement, which may have substantially different terms, including new or increased fees and territory adjustments. A renewal fee must be paid, and franchisees and all owners must sign a general release of claims against the franchisor. Additionally, the Key Person and any designated employees must complete any required training, and franchisees must show they have the right to operate from their Approved Location for the renewal term. Finally, they must remodel, refurbish, or renovate their vehicles and premises, and update computer systems and vehicles to meet the franchisor's current Brand Standards.
Training & Support Program
Franchisor Assistance
The Junkluggers provides comprehensive support to its franchisees. Before opening, the franchisor offers an initial training program, grants electronic access to the Operations Manual, sets up access to the Franchisee Portal and a Call Center account, and provides information and specifications for required software, fixtures, furnishings, equipment, and signage. The franchisor also assists with creating a pre-opening and grand opening marketing plan and offers opening support. After opening, The Junkluggers continues to provide assistance through additional required and optional training programs, develops and maintains Brand Standards, and manages the Franchisee Portal. The franchisor notifies franchisees of vendor specifications and approvals, oversees a Brand Standards Assessment program, and manages the Brand Fund, making creative marketing materials available (with franchisees covering reproduction/customization costs). The Junkluggers also reviews proposed advertising plans, manages social media accounts registered in its name, monitors a customer warranty/satisfaction guarantee program, and manages contracts for Key Accounts.
Initial Training Hours
67
Training Location
Seymour, CT
Ongoing Support
After opening, The Junkluggers franchisees receive ongoing support including access to additional required and optional training programs, and regular updates to Brand Standards. The franchisor manages the Franchisee Portal and a Brand Standards Assessment program to help ensure quality. Marketing support is provided through the Brand Fund, which finances creative materials, and the franchisor reviews all proposed advertising and promotional plans. The Junkluggers also manages social media accounts registered in its name and oversees any customer warranty or satisfaction guarantee programs. Additionally, it manages contracts and relationships with Key Accounts. Franchisees are expected to use designated technology systems, including software, for which ongoing support and maintenance are covered by a Technology Fee. While specific frequencies for coaching calls or field visits are not detailed, there is continuous support through systems, standards, and various programs.
Franchise Requirements
Ideal Candidate Profile
The Junkluggers seeks individuals and business entities who are prepared to make a significant investment and effort to own and operate a business focused on eco-conscious junk removal and second-hand retail services. The ideal franchisee must designate a Key Person, who must be an owner with at least a 5% interest in the business. This Key Person is required to personally manage and operate the franchise as their primary occupation, successfully complete the initial training program, and work from the business office. For those operating multiple territories or not as a primary occupation, a Designated Manager can be approved, provided they also complete training. The franchisor is looking for owners committed to hands-on, full-time operational involvement in their business.
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
Protected
Territory Size Requirements
The Junkluggers defines its typical territory based on a population of approximately 400,000 individuals, using postal zip codes. However, the actual population and geographic size of a territory can vary depending on factors like population density. The franchisor reserves the right to allow franchisees to add zip codes to their existing territory, which would incur an additional population fee of $0.12 per person for the added population.
Staffing Notes
The Junkluggers requires franchisees to maintain adequate staffing levels to meet its Brand Standards. Franchisees are solely responsible for all employment decisions, including recruiting, hiring, firing, scheduling, and training (beyond the initial franchisor-provided training). This includes managing compensation, benefits, and compliance with all labor laws. Franchisees must clearly inform all workers that they are employees of the franchisee, not the franchisor, and are responsible for ensuring employees understand social media policies. While specific staff counts or roles are not detailed, the franchisor mandates that employees are adequately trained to use technology systems and follow operational policies. Franchisees are also required to conduct initial and periodic drug testing and background checks for employees, and must install GPS tracking systems on all vehicles used in the business.