They say one man’s trash is another man’s treasure. Whatever you call it, Americans have a lot of junk, and more and more people are looking to get rid of it. The result is a junk removal industry that is growing. And junk removal franchises are an opportunity to take advantage of this growth.
According to EPA.gov, Americans generate 4.51 pounds of trash per person per day! With all this waste, you can see the potential for entrepreneurs looking at junk removal franchises as a business. Research from Global Markets Insights shows a market value of $1 trillion annually worldwide for the waste management industry. ResearchandMarkets.com projects an $80.7 billion market in the U.S. alone by 2023.
So, what do junk removal companies haul as part of the service they provide? This depends on the junk removal franchise. Old furniture, refrigerators, stoves, washing machines, carpeting, and televisions are on the list for nearly all companies. Some companies do commercial hauling of computers and printers. Most franchises will not haul away hazardous waste, however.
Many trash hauling businesses are local independent companies. Often they double as moving companies. After all, people take the opportunity when moving to cull down their possessions. Besides, both types of businesses need similar skills and equipment. So there’s a natural connection between a moving service and hauling.
But aspiring entrepreneurs today may want to take advantage of the branding and professional marketing that junk removal franchises provide. The franchising benefits help them stand out from the competition to achieve success.
7 Junk Removal Franchises
Below are our picks for the top junk removal franchises.
1. Two Men and a Truck
When two of Mary Ellen Sheets’ sons went to college in 1985 and left their small moving business, she decided to take over. By 1989 she began to sell franchises and today the company has more than 300 franchises worldwide.
Two Men and a Truck has over 3,000 trucks and says it has a 96% referral rate. This is a great number if you are starting out as a new franchisee. However, the company is more than a junk removal franchise. It is now a full-service business offering storage, boxes and supplies, long-distance moving and packing services.
The initial investment for a franchise has two options. The mini-market start-up costs run between $100,000 and $192,000 and standard market start-up costs run between $179,000 and $585,000. There is also an ongoing royalty fee of 6% and 1% for the ad royalty fee.
2. 1-800-GOT-JUNK?
Since 1989, 1-800-GOT-JUNK? has been hauling unwanted items. The founder of 1-800-GOT-JUNK, Brian Scudamore, started the company when he was 19 years old. The goal of his business was to find a way to pay for his college tuition.
The $700 he spent on a used pick-up truck has now grown to a multi-million-dollar company with three different brands. In 1998 the company started making franchises available. And it now has around 160 franchises in the U.S., Canada, and Australia. Although 1-800-GOT-JUNK? says it is the largest junk hauling service in the world, it has limited franchises available for sale.
The company provides its franchise owners with training in the classroom and the field to ensure owners understand the business. Additionally, it offers ongoing operational and marketing support. Add in propriety software, email marketing, SEO and co-op advertising to the support list.
Another essential support is a centralized call center. This center handles all sales, services and dispatch by customers looking for junk haulers. For new entrepreneurs, this removes a lot of the costs associated with junk removing services.
The initial investment is around $210,000, with royalty fees of 8% of gross revenue. There are also other fees associated with support and operations including Customer Relationship Management (CRM) fee, marketing fund, and a renewal fee.
3. Junk King
Junk King was founded in 2005 by Michael Andreacchi and Brian Reardon. Today the company has 105 franchises in the United States and Canada.
With bigger trucks, larger territories and recycling up to 60% of the junk they haul, the company says in 2014 it was the highest-ranked customer service organization in North America.
For those looking to buy into a franchise, Junk King provides multiple revenue streams including consumer and residential income; a commercial and industrial business; government contracts; and recycling. Junk King says each channel builds a network with a community presence in its territory. The goal is to make a diversified income stream from services — one that is recession-resistant with stable month-to-month revenue.
Junk King is also one of the few junk removal franchises offering a national 800 number and call center support. This goes along with extensive marketing support for business owners. Local marketing with direct mail, couponing, and target offers along with local PPC ( e.g., Google Ads) and national SEO are some of the marketing tools franchisees get.
The total franchise cost for a market of 450,000 – 650,000 people is $89,850 to $175,440?. The amount will depend on costs such as vehicles, travel costs for training, inventory, office and warehouse lease, signage and more.
4. J Dog Junk Removal
By providing franchise opportunities exclusively for veterans, J Dog Junk Removal has carved out a niche for itself. The company was founded by Jerry Flanagan, an Army veteran and entrepreneur, in 2011.
The business started out with a two-person team in a Home Depot parking lot in 2011. There are now 200 franchises across 31 states. The only thing JDog Junk Removal doesn’t haul away is hazardous waste. So, everything from appliances to yard waste, furniture, tires, scrap metal and more is fair game for this junk removal franchise.
The service this company provides to its franchises includes 13 hours of on the job training along with 27 hours of classroom training. The marketing support includes leads from the company’s website.
The leadership team supports new franchise business owners by being available and mentoring them through their journey as the owners learn. The company further supports veterans through its J Dog Foundation by donating funds to organizations dedicated to improving the everyday lives of veterans.
The franchise is offered exclusively to veterans, active-duty military, and their families. And with that in mind, the startup cost is lower than other franchises. The initial investment for a franchise is $29,850 – $110,070 with an ongoing franchise fee of $400 -$2,000 per month.
5. Junkluggers
Josh Cohen borrowed his mom’s SUV to start Junkluggers in 2004. By 2012 he had franchises available for sale. Today there 24 franchises providing hauling services including addressing the needs of hoarders.
The company has a solid training program that includes 18 hours of on the job training and more than 30 hours of classroom training. It can take 8 – 12 weeks before franchises can get going with their new business.
As junk removal franchises go, this is a company fully dedicated to providing environmentally friendly services. By 2025 it wants to keep all hauled items out of landfills by reusing, donating, recycling, and upcycling.
The initial investment for a Junkluggers franchise can cost between $105,435 – $222,210. The ongoing royalty fee is 5 % – 7% along with an ad royalty fee of 2%. The company also requires a net worth of $300,000 and liquid cash of $85,000.
If you happen to be a veteran with an honorable discharge you can get a $5,000 discount off the initial franchise fee.
6. Bin There Dump That
Bin There Dump That takes a different approach to getting rid of your things. The company provides dumpsters so customers can take their time throwing away their stuff. There are now more than 110 franchises across the U.S. providing the services.
Customers can rent and use dumpsters of different sizes for up to seven days, on their own property. The company then comes to pick up the dumpster from customer locations.
Bin There Dump That franchises give the ability to increase revenue with additional services. Although it provides residential friendly dumpsters, the company says half of its customers are contractors. For franchisees, this means another source of income from a different industry segment.
The investment for franchises has a startup cost of $75,000 to $128,250. This includes an initial franchise fee of $38,000 to $42,000 along with an ongoing royalty fee. For the first two years, the operations royalties are discounted. This the company says is to give the new franchise operators time to build their customer base and establish a market presence.
Year 1 royalty = $6,000 per year, per truck ($500/month), year 2 royalty = $9,000 per year, per truck ($750/month) and year 3+ royalty = $12,000 per year, per truck ($1000/month).
7. College Hunks Hauling Junk
In 2003 a group of friends in college borrowed a cargo van and started hauling unwanted items. By 2007 they were selling franchises. College Hunks now has more than 100 franchisees in 250 territories nationwide.
College Hunks Hauling Junk donates or recycles 70% of the items it hauls. This includes attic and storm clean-outs along with trash, tires, and yard waste in addition to the regular items.
The support options include 55 hours of on the job training and 53 hours of classroom training as well as marketing, social media, website development and more.
The average revenue of franchises grew 113% in the past 7 years and jumped by $121,000 in 2019 with average sales per unit of $1.25 million.
Starting a franchise requires at least $50,000 in liquid capital and a net worth of $200,000. The overall amount in the initial investment is $95,700 to $231,200. This includes at least $40,000 to $60,000 for the initial franchise fee. There is a 7% ongoing royalty fee and 2% for ad royalty.
Attractiveness of Franchises
The junk removal industry has evolved into sophisticated businesses with tight systems and marketing. And that shows why franchises fit right in.
One of the benefits of franchises is they offer entrepreneurs a proven business model to get their new venture going. This is especially important for companies striving to be the best in their industry and location. You can always start your own junk hauling business from scratch. But if you would love a head start, you have solid options from successful franchises. Here are some franchise ideas to consider.
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This article, “Top Junk Removal Franchises for 2020” was first published on Small Business Trends