Redbox+ logo

Redbox+ Franchise

Audited Financials
Commercial ServicesEst. 2021Ann Arbor, MI
www.redboxplus.com

Risk Score

Pending analysis

Investment Range

$643,234 - $1,102,516

Franchise Fee

$35,000

Total US Locations

253

Business Summary

Redbox+ International, LLC operates a redbox+ business that provides waste hauling services, roll-off containers, dumpsters, dump trailers, and portable toilet rental services. The business utilizes patented technology for its roll-off container/portable toilet combination units, serving residential, industrial, and commercial clients, including roofers, contractors, remodelers, developers, and homeowners. A single operator with one truck can manage the placement, pickup, and maintenance of the redbox+ units.

Corporate History

RedBox+ International, LLC was formed as a Michigan limited liability company on May 28, 2021. The redbox+ System, however, has a longer history, with a predecessor company, RedBox+, LLC, operating as the franchisor from March 2014 until June 2018. Following this, redbox+ Franchising, LLC served as the franchisor from June 2018 until June 30, 2021. RedBox+ International, LLC acquired the redbox+ Marks, business system, and existing franchise agreements on June 30, 2021, becoming the new franchisor. The current franchisor began offering franchises for sale on July 28, 2021. RedBox+ International, LLC is a subsidiary of BELFOR Franchise Group, LLC.

Financial Overview

Investment Range

$643,234 - $1,102,516

Franchise Fee (Low)

$35,000

Franchise Fee (High)

$59,500

Royalty %

8%

Marketing %

1.25%

Equipment Costs (Low)

$515,575

Equipment Costs (High)

$888,207

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The financial statements for BFG Holdco, Inc., Redbox+ International, LLC's parent company and guarantor, indicate consistent net losses from 2022 to 2024, with a significant loss of $44,277,000 in 2023. Net revenue and gross profit have been decreasing over this period. The company also recognized substantial goodwill impairment losses in 2023 ($45,537,000) and 2024 ($10,519,000). These impairments are attributed to deteriorating economic conditions and strategic efforts to reduce the franchise network size due to franchisee noncompliance. While BFG Holdco, Inc. maintains positive and increasing working capital, the sustained losses and significant impairments suggest ongoing financial challenges for the guarantor.

Financing Details

Redbox+ International, LLC does not offer any direct or indirect financing. It will not guarantee any franchisee's notes, leases, or other obligations.

Performance Metrics

Total US Locations

253

Franchised Units

253

Corporate Units

0

Franchising Since

2021

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew the franchise agreement, Redbox+ International, LLC franchisees must provide written notice of their intent to renew 6 to 12 months before the current term expires. Franchisees must be in good standing, without any defaults or monetary obligations owed to the franchisor or its affiliates. They must complete all required maintenance and refurbishing of their premises, satisfy current training requirements for new franchisees, and sign the franchisor's then-current franchise agreement, which may have different terms. Additionally, franchisees must execute a general release of claims against the franchisor and pay a renewal fee of $10,000 per territory.

Training & Support Program

Franchisor Assistance

Redbox+ International, LLC provides initial tuition-free training for up to three people, including the franchisee and their manager. This training covers inventory, sales techniques, and personnel development. The franchisor also supplies a list of approved vendors, offers the Truck Equipment Package and Initial Containers for purchase, and loans an Operations Manual containing mandatory standards. Ongoing support includes continuous consultation and advice on business operations, marketing, and advertising matters through various methods such as telephone and email. The franchisor furnishes product and service specifications, reviews and approves advertising materials, administers the Brand Marketing Fund, and provides access to updates for the Operations Manual. Mandatory national business meetings or conventions are also scheduled for franchisees and their managers.

Initial Training Hours

29

Training Location

redbox+ Offices in Ann Arbor, MI or another location designated by the franchisor

Ongoing Support

Redbox+ International, LLC provides continuing consultation and advice on inventory, sales techniques, personnel development, and other business, operational, and advertising matters. This assistance is delivered through telephone, fax, email, and postings on the franchisor's intranet, with periodic on-site support. The franchisor also furnishes specifications for required products and services, reviews and approves all franchisee advertising, and administers the Brand Marketing Fund. Franchisees receive access to all modifications and additions to the Operations Manual electronically. Additionally, Redbox+ International, LLC schedules national business meetings or conventions, which franchisees and their Operating Principals and managers are required to attend.

Franchise Requirements

Ideal Candidate Profile

Redbox+ International, LLC seeks franchisees who, if an entity, will appoint an Operating Principal. This Operating Principal must be an equity owner and possess the authority to make all operational decisions for the redbox+ Business. If the Operating Principal is not directly involved in the day-to-day operations, a dedicated general manager must be appointed. The general manager is required to commit their full time and best efforts to the role and must not have any conflicting interests or business relationships with competitors. Both the franchisee, the Operating Principal, and the general manager are expected to meet the franchisor's standards and avoid engaging in any other business or activity that could interfere with or compete with the redbox+ Business.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

Yes

Operational Details

Location Type

Hybrid

Owner Participation

Supervisory

Territory Type

Protected

Staff Count

3

Territory Size Requirements

Redbox+ International, LLC provides franchisees with a protected territory defined by a group of contiguous zip codes. Each baseline territory includes a population of 300,000 individuals. Franchisees have the option to purchase additional population at a cost of $0.20 per person, up to a maximum population of 450,000.

Staffing Notes

Redbox+ International, LLC indicates that one person with one truck can operate the redbox+ unit and portable toilets. The franchisor recommends starting operations with two trucks or acquiring a second truck within six months. If the franchisee is an entity, it must appoint an Operating Principal (an equity owner) to make operational decisions. If the Operating Principal is not involved daily, a full-time general manager, who meets the franchisor's standards and completes training, must supervise the business. Franchisees are solely responsible for all employment decisions, including hiring, firing, discipline, compensation, and employee training. Drivers for the trucks require a CDL Class B Driver's License and a Wastewater Disposal License. Franchised businesses must maintain adequate personnel to meet operational demands and adhere to all labor laws.