Mobiledumps Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$61,640 - $220,100
Franchise Fee
$18,000
Total US Locations
25
Business Summary
Mobiledumps operates a mobile dumpster service that allows residential and commercial customers to schedule the drop-off and pick-up of their proprietary dumpsters. Customers can manage the waste disposal process at their convenience through the Mobiledumps website and business management system.
Corporate History
Mobiledumps Franchising, LLC was established as a Virginia limited liability company on September 14, 2021. The company began offering Mobiledumps franchises in November 2021. Although Mobiledumps Franchising, LLC does not currently operate any Mobiledumps businesses, it previously operated two company-owned outlets which were sold to a franchisee in April 2022. The company has only ever offered franchises for this mobile dumpster service and operates solely under the Mobiledumps name.
Financial Overview
Investment Range
$61,640 - $220,100
Franchise Fee (Low)
$18,000
Franchise Fee (High)
$40,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$6,040
Equipment Costs (High)
$128,100
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Mobiledumps Franchising, LLC raises concerns about its ability to provide ongoing services and support to franchisees. The company has reported net losses for the past two fiscal years, using a significant amount of cash in operating activities. This financial situation is explicitly highlighted as a special risk for potential franchisees in the disclosure document.
Financing Details
Mobiledumps Franchising, LLC may offer direct financing, at its discretion, to existing and qualified franchisees for the initial franchise fee for additional franchises. Franchisees are required to make a down payment of at least $5,000, with the remaining initial fee financed. The loan term is 27 months, and interest begins to accrue from the date of the note, but the first payment is deferred until the 15th of the fourth month. The annual interest rate is the Secured Overnight Financing Rate (SOFR) plus 3% (e.g., 8.3%), which can be adjusted at month 12 if the SOFR moves by more than 50 basis points. Prepayment is permitted without penalty. Mobiledumps Franchising, LLC does not arrange financing from other sources.
Performance Metrics
Total US Locations
25
Franchised Units
25
Corporate Units
0
Avg Square Footage
750
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Mobiledumps has one disclosed legal action from April 2023 involving the State of Washington Department of Financial Institutions. An investigation found that Mobiledumps offered and sold an unregistered franchise in Washington State and made false statements about this. To resolve the matter, Mobiledumps agreed to a Consent Order, committing to stop violating the state's franchise investment act, cease any anti-fraud violations, and pay a $1,000 fine. Mobiledumps reports no other litigation.
Bankruptcy History
Mobiledumps has no bankruptcy history to report for the franchisor or its executives.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Mobiledumps franchise, franchisees must provide written notice of their intent to renew between three and six months before the current term expires. They must be in good standing, meaning they are compliant with all agreements and laws, and must not have been in material default during the 12 months prior to renewal. Franchisees are also required to upgrade all equipment to meet current standards, attend any necessary training, sign Mobiledumps Franchising, LLC's then-current renewal franchise agreement (which may include different terms and fees), and sign a general release of all claims against the franchisor.
Training & Support Program
Franchisor Assistance
Before a Mobiledumps franchise opens, Mobiledumps Franchising, LLC will provide approval for operation, a list of approved suppliers, an initial training program, and a copy of its confidential operations manual. After opening, Mobiledumps Franchising, LLC continues to assist by administering the Brand Building Fund, offering additional training as needed, reviewing and approving potential new suppliers, and conducting inspections of the Mobiledumps business at its discretion.
Initial Training Hours
17
Training Location
Corporate headquarters in Richmond, Virginia or another location chosen by Mobiledumps Franchising, LLC
Ongoing Support
Mobiledumps Franchising, LLC provides ongoing support to franchisees by administering the Brand Building Fund for marketing and promotion. It also offers additional training courses, which may include marketing webinars and participation in franchise committees, and may require franchisee employees to complete them. Mobiledumps Franchising, LLC will review and approve proposed suppliers upon a franchisee's request and may conduct discretionary inspections of the Mobiledumps business.
Franchise Requirements
Ideal Candidate Profile
Mobiledumps seeks qualified persons and entities to develop and operate its mobile dumpster businesses. While the FDD does not explicitly outline an ideal franchisee profile, it indicates that a franchisee or a proposed transferee and their owners should meet managerial, operational, experience, quality, character, and business standards. They should possess good character, a solid business reputation, and a strong credit rating. Furthermore, their organization's management culture should be compatible with Mobiledumps' culture, and they must have adequate financial resources and working capital to operate the franchised business. The business also requires on-site supervision by a full-time General Manager who successfully completes Mobiledumps' initial and ongoing training and is approved by the franchisor.
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
Protected
Territory Size Requirements
Mobiledumps territories are defined by mutually agreed-upon zip codes, with a standard area having a population of up to 350,000 people. Additional fees apply for larger territories, with an extra $10,000 for each additional 500,000 people. Territory population is determined by the most recent census data for the assigned zip codes. Mobiledumps Franchising, LLC reserves the right to reduce a franchisee's protected area or offer part of it to a new franchisee if the existing franchisee is unable to meet service demand.
Staffing Notes
Each Mobiledumps franchise must always be under the on-site supervision of a full-time General Manager. This manager, who is not required to be an owner, must successfully complete all initial and ongoing training mandated by Mobiledumps Franchising, LLC and receive the franchisor's approval. Franchisees are responsible for selecting and ensuring the General Manager completes training before operations commence. Mobiledumps Franchising, LLC also requires franchisees to maintain an adequate number of competent and trained staff to promptly service customers.