Rubbish Works Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$117,100 - $195,000
Franchise Fee
$55,000
Total US Locations
4
Business Summary
Rubbish Works, LLC offers franchises for home-based, mobile businesses that provide full-service junk-removal services to residential consumers. Rubbish Works franchisees operate their businesses typically from a van or truck and a home office, and they are responsible for identifying and soliciting their own customers.
Corporate History
Rubbish Works, LLC was formed in Delaware on October 12, 2020. The company operates under its corporate name and as RUBBISH WORKS. It began offering franchises in November 2020. Rubbish Works, LLC acquired the assets of the Rubbish Works junk-removal services business from ColorGreen, LLC on November 2, 2020. ColorGreen, LLC had previously acquired the rights to the Rubbish Works system in March 2015 from Rubbish Works Holdings, LLC (RWH). RWH originally offered franchises for the Rubbish Works business from July 2005 until it sold the system to ColorGreen in March 2015. One or more affiliates of RWH operated Rubbish Works businesses from at least July 2005 to October 2010.
Financial Overview
Investment Range
$117,100 - $195,000
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$65,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$5,750
Equipment Costs (High)
$15,500
Working Capital
$31,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights that Rubbish Works, LLC's financial condition, as reflected in its affiliate Premium Service Brands, LLC's financial statements, calls into question Rubbish Works, LLC's ability to provide services and support to franchisees. The consolidated financial statements for Premium Service Brands, LLC (the guarantor) show net losses of $687,795 in 2024 and $733,879 in 2023. Additionally, Premium Service Brands, LLC had a members' deficit of $5,873,114 as of December 31, 2024, indicating that its total liabilities exceeded its total assets. While the auditors issued an unqualified opinion on these consolidated financial statements, the FDD explicitly notes the concern about Rubbish Works, LLC's financial capacity.
Financing Details
Rubbish Works, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
4
Franchised Units
4
Corporate Units
0
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
15
Litigation Summary
Rubbish Works, LLC has a comprehensive litigation history, including both ongoing and resolved cases, as well as administrative proceedings, primarily involving its affiliate 360 Painting, LLC and its principal, Paul Flick. The FDD explicitly states there are 15 actions to be disclosed. Currently, Rubbish Works, LLC has several pending actions. One dispute involves 360 Painting, LLC (an affiliate) against a former franchisee, Glenn A. Misiph, and AASK Services, LLC, in federal court in Virginia and Massachusetts, alleging breach of contract, unjust enrichment, trade secret misappropriation, and tortious interference. The franchisee has filed counterclaims for fraud, negligent misrepresentation, and unfair business practices. This case is ongoing, with the court allowing both sets of claims to proceed and discovery currently underway. Additionally, Rooterman, LLC (another affiliate) is involved in two ongoing proceedings against a former franchisee, Klodian Belegu, and his corporations in Massachusetts federal court and American Arbitration Association. Rooterman alleges trademark infringement, unfair competition, violation of post-termination covenants, and failure to pay royalties, while Belegu counterclaims fraudulent inducement, breach of contract, and challenges the validity of Rooterman's trademarks. These cases are in their early stages, with a preliminary injunction motion pending in the federal case. Previously resolved litigation (between 2011 and 2022) includes: 360 Painting settling a breach of contract and fraud claim with former franchisee Greg DeGregorio in 2021 for $21,000; 360 Painting settling a 2019 lawsuit with former franchisee Deborah Carreno for $57,500 over allegations related to licensing and training support; Premium Service Brands, LLC settling a contract dispute with a CRM software vendor, Dispatch Technologies, Inc., for $190,000 in 2019; 360 Painting settling a 2017 advertising contract dispute with YP, LLC for $21,000; and 360 Painting and Paul Flick settling a 2011 fraud and breach of contract lawsuit with MMG-360 LLC in 2020 for $100,000 related to asset purchase rescission. Rubbish Works, LLC and its affiliates have also been subject to several governmental administrative actions between 2016 and 2023. These primarily involved 360 Painting and Paul Flick, addressing issues such as offering unregistered franchises and disclosure failures under state franchise laws. Notable actions include a 2016 Maryland Securities Division proceeding where 360 Painting agreed to cease unregistered sales and offer rescission, a 2020 Illinois Attorney General investigation resulting in a voluntary compliance agreement and $6,000 payment for disclosure act violations, and a 2020 Virginia State Corporation Commission settlement for $11,000 for FDD disclosure failures. In 2021, the California Department of Financial Protection and Innovation issued a Consent Order against several affiliates, including Rubbish Works, LLC, and Paul Flick, for disclosure failures, resulting in $83,000 in penalties and costs, disgorgement of initial franchise fees to California franchisees, and a 36-month bar for Paul Flick from offering/selling franchises in California. In 2022, 360 Painting and Pro-Lift Doors Franchise, LLC (affiliates) entered Consent Orders with the Washington Department of Financial Institutions, each paying $2,000 for alleged franchise law violations. Finally, in 2023, 360 Painting and Paul Flick entered a Consent Order with the Maryland Securities Commissioner, agreeing to a $50,000 civil penalty for failing to disclose certain lawsuits in FDDs.
Bankruptcy History
Rubbish Works, LLC has no bankruptcy history to report. Item 4 of its Franchise Disclosure Document explicitly states that no actions are required to be disclosed regarding bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Rubbish Works franchisees must provide written notice between six and nine months before their initial term expires. They must be in good standing, meaning they have consistently complied with all terms of the Franchise Agreement and any other agreements, and are not in default. Franchisees will need to sign Rubbish Works, LLC's then-current Franchise Agreement, which may include different terms and conditions, such as higher fees (royalties, contact center fees, technology fees, marketing fund contributions, or accounting and business advisory services fees), a change in the size or composition of the protected territory, and mandatory minimum periodic royalty requirements. Franchisees must pay a renewal fee equal to the greater of 25% of the then-current initial Franchise Fee or $15,000. They are also required to perform all necessary maintenance, updating, refurbishing, and replacement of their vehicles and any leased or owned business premises to reflect current brand standards. Finally, the franchisee and their supervisory/operational manager(s) must attend and successfully complete any retraining programs required by Rubbish Works, LLC, meet current qualification requirements, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Rubbish Works, LLC provides a range of assistance to its franchisees. Before opening, Rubbish Works, LLC designates a protected territory, offers an initial training program, and provides access to its confidential Brand Standards Manual. It also furnishes a list of approved suppliers for equipment, signs, and opening inventory, assists with setting up mandatory software systems, websites, and email accounts, consults on alternative office locations if the franchisee chooses not to operate from home, and suggests pricing policies. After the business opens, Rubbish Works, LLC offers ongoing support by providing additional opening assistance (upon request and approval) related to sales, promotions, and operations. It offers periodic general guidance via telephone, email, facsimiles, and newsletters, covering topics like authorized services, operational methods, accounting procedures, and marketing strategies. Rubbish Works, LLC may conduct periodic onsite visits for consultation and guidance, and it makes ongoing training and operational assistance available as deemed necessary. The franchisor also provides updates to the System, Brand Standards Manual, approved suppliers, and products, and approves advertising materials. Additionally, Rubbish Works, LLC maintains a contact center for centralized customer service and scheduling for all businesses operating under its system and suggests pricing policies.
Initial Training Hours
80
Training Location
Corporate offices in Charlottesville, Virginia, and virtual sessions
Ongoing Support
After their Rubbish Works business opens, franchisees receive ongoing support in several ways. Rubbish Works, LLC provides periodic advice and general guidance through telephone, email, facsimiles, and newsletters. At its discretion, the franchisor may conduct periodic visits to the business for consultation, assistance, and guidance in various aspects of operation and management, and it makes ongoing training and operational assistance available as needed. Rubbish Works, LLC also provides updates to the System, the Brand Standards Manual, approved suppliers, and approved products. Franchisees receive approval for their advertising materials. Rubbish Works, LLC maintains a contact center for centralized customer service and scheduling for all businesses operating under the system. Franchisees are also required to attend an annual convention, and additional refresher training or regional meetings may be mandated.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
hands-on
Territory Type
protected
Territory Size Requirements
Each Rubbish Works franchise operates within a protected territory defined by zip codes. This geographic area is designed to contain not less than 50,000 to 80,000 single family dwellings.
Staffing Notes
Rubbish Works, LLC requires that each Rubbish Works business be under the direct, 'on-premises', full-time supervision of a Designated Manager who has successfully completed the initial training program. This manager can be the franchisee if they are an individual, or an individual selected by the franchisee if it is a business entity. Rubbish Works, LLC does not control the hiring, compensation, supervision, or termination of the franchisee's employees, nor is it a joint employer. Franchisees are solely responsible for implementing an approved training program for their own employees and ensuring they are qualified and adhere to Rubbish Works, LLC's operational standards.