Franchise Deep Dive: 1-800-GOT-JUNK?'s Franchise Costs, Fees, Profit and Data

The saying ‘one man’s trash is another man’s treasure’ certainly is true for owners of junk removal businesses.

SPONSOREDUpdated 12:00AM • 02/28/23

LAST UPDATED: August 17, 2023
FRANCHISE WEBSITE: www.1800gotjunk.com/us_en/franchise/business-opportunity
NUMBER OF LOCATIONS: 200+
REPORTED COST TO GET IN: $161,000 – $243,330
REPORTED ANNUAL SALES: $1,217,332 – $2,562,510

1-800-GOT-JUNK? has long been a trusted name for consumers who need a company to remove their unwanted items. But in recent years, more and more businesspeople are taking note of the brand for its attractive opportunity as a franchise. With more than 200 units in operation today, the company stands as a strong staple of the industry, amongst other concepts like College HUNKS Hauling Junk & Moving, Bin There Dump That and Two Men and a Truck.

How Many 1-800-GOT-JUNK? Locations Are There?

As of August 2023, 1-800-GOT-JUNK? has more than 200 units. The company claims that, at any given time, there are 1,500 trucks and 5,000 team members on the road.

The waste removal service brand is based out of Vancouver, British Columbia, and operates franchises in Canada, the United States and Australia. It was started in 1989 by then-college student Brian Scudamore, who had an idea for a company and about $700. The franchise is owned by Scudamore’s O2E Brands umbrella company.

1-800-GOT-JUNK? has been franchising since 1999, when the first location in Toronto opened. Two years later, the brand had a double-digit presence in North America.

The number of franchises in the United States has remained fairly steady over recent years, although it is growing slowly. As of 2022, there were 133 franchisee-owned units. 1-800-GOT-JUNK? Began opening corporate-run units in 2019 and currently has five company-run units and counting.

What is the 1-800-GOT-JUNK? Business Model?

The brand offers junk removal franchises under the 1-800-GOT-JUNK? name. Owners have access to “proprietary software, brand development, training, marketing programs and access to the exclusive service of the call center and online booking system,” according to Franchise Direct.

Franchisees sign on for a protected territory consisting of a minimum of eight “subterritories” with populations of 62,500 to 75,000 people. The length of the initial franchise agreement is five years, and owners in good standing can renew for three additional five-year terms.

How Much Can 1-800-GOT-JUNK? Franchise Owners Make?

The financial performance representations in Item 19 of 1-800-GOT-JUNK?’s 2020 Franchise Disclosure Document reported the average gross sales from a collection of franchisees as of December 31, 2019: 129 from the United States, 20 from Canada and five from Australia. The brand broke down reporting groups by the length of business operations.

Average Gross Sales for 12 Months:

Owners open 12 to 24 months: $2,205461
Owners open 24 to 36 months: $1,825,015
Owners open 36 to 48 months: $1,217,332
Owners open 48 to 60 months: $1,646,543
Owners open 60 to 72 months: $2,522,623
Owners open 72+ months: $2,562,510

While 1-800-GOT-JUNK? does not provide further data on how much net income franchise owners make from those yearly sales, Career Bliss estimates that franchisees with the brand make about $91,000 annually, which is 41% higher than the average franchise owner.

How Much Does it Cost to Open a 1-800-GOT-JUNK??

The total investment necessary to begin the operations of a 1-800-GOT-JUNK? franchise varies between $161,000 to $243,330. This is due to the differences in fees depending on how many sub territories an investor signs on for and how large the service area is.

The following costs involved in the initial investment are ranges for eight to 12 sub-territories:

Initial Marketing: $25,000
Computer Hardware and Software: $1,500 – $4,000
Miscellaneous Opening Costs: $5,000 – $15,000
Equipment; Lease/Purchase Deposit: $0 – $10,000
Real Estate/Rent: $1,200 – $5,000
Local Marketing - 3 Months: $3,600
Insurance: $2,000 – $8,000
Training Expenses: $1,500 – $4,150
Additional Funds - 6 Months: $58,000 – $73,000

Ongoing Costs and Fees include:

Royalty: 8% of gross revenue.
Sales and Marketing Center Fee: 8% of gross revenue
Branding Cooperative: Up to 5% of gross revenue
Annual Conference: $1,500 to $2,000 plus costs associated with attendance.

What is the Franchise Fee for 1-800-GOT-JUNK?

The franchise fee for a 1-800-GOT-JUNK territory depends on how many subterritories the owner signs for. According to the 2020 FDD, each subterritory has a franchise fee of $8,125, with a minimum number of eight bringing the lowest franchise fee to $65,000. If an investor signs for 12 subterritories, the franchise fee will be $90,000.

Who is the Leadership of 1-800-GOT-JUNK?

What Helpful Articles Can I Read to Learn More About 1-800-GOT-JUNK?

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