In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a 1-800-Got-Junk? franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a 1-800-Got-Junk? franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned 1-800-Got-Junk? outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the 1-800-Got-Junk? franchise opportunity

Section V – Presentation and analysis of 1-800-Got-Junk?’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross revenue per franchisee and per subterritory for the 140 franchised 1-800-Got-Junk? businesses that have been in operation for more than one day and made any gross sales at any point during the 12-month period ending on December 31, 2023, grouped according to number of months in operation (more than 1 day, but less than 12 months; more than 12 months, but less than 24 months; more than 24 months, but less than 36 months; more than 36 months, but less than 48 months; more than 48 months, but less than 60 months; more than 60 months, but less than 72 months; and more than 72 months)

• 2023 average, median, highest, and lowest gross revenue per franchisee and per subterritory for the 9 affiliate-owned 1-800-Got-Junk? businesses that have been in operation for more than 72 months and made any gross sales at any point during the 12-month period ending on December 31, 2023
  

• number and percentage of franchisees in the United States, Canada, and Australia (separately stated) generating total revenue of greater than $1,000,000, from $750,001 to $1,000,000, from $500,001 to $750,000, and $500,000 or less, respectively
  

• total 2023 gross revenue from all 1-800-Got-Junk? franchised businesses operating in the United States, Canada, and Australia for at least 1 day in the 2023 calendar year

• total gross revenue from all 1-800-Got-Junk? franchised businesses operating in the United States, Canada, and Australia for at least 1 day in the 2023, 2022, and 2021 calendar years, respectively, and the dollar amount and percentage of gross revenue growth over that period

Section VI – Key ratios, comparables, computations, and analyses for the 1-800-Got-Junk? franchise opportunity (exclusive content for Platinum subscribers)

Section I – 1-800-Got-Junk? Franchise Costs

• 1-800-Got-Junk? franchise costs (for a franchisee with 8 to 12 subterritories, with 8 being the minimum-sized new territory 1-800-Got-Junk? offers), based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $65,000 to $97,500
• Initial Marketing Expense:  $25,000
• Computer Hardware and Software:  $1,500 to $4,000
• Miscellaneous Opening Costs:  $5,000 to $15,000
• Equipment (vehicle lease with dump box):  $0 to $10,000 (lease/purchase deposit)
• Real Estate/Rent:  $1,200 to $5,000
• Local Marketing (3 months):  $3,600 to $5,000
• Insurance:  $7,000 to $17,500
• Training Expenses:  $1,500 to $4,150
• Additional Funds (6 months):  $59,000 to $75,000
• Total Estimated 1-800-Got-Junk? Franchise Costs:  $168,800 to $258,150

Section II – 1-800-Got-Junk?’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $8,125 per subterritory; 1-800-Got-Junk? requires a minimum purchase of 8 subterritories, for a total minimum Initial Franchise Fee of $65,000

• Royalty:  8% of Gross Revenue

• Minimum Royalty:  depending upon your year of operation, the Minimum Royalty will range from $1,200, prorated as necessary to account for operations for a partial calendar year in the first year of operation, to $4,000 for each subterritory per calendar year. The amount payable is the amount the Minimum Royalty exceeds the amount of Royalties actually paid by you in any year of operations in the specific subterritory being measured.

• Sales, Marketing, and Technology Fee:  8% of Gross Revenue

• Branding Cooperative:  up to 5% of Gross Revenue in aggregate

Section III – Number of Franchised and Company-Owned 1-800-Got-Junk? Outlets

Franchised

2021

• Outlets at the Start of the Year:  128
• Outlets at the End of the Year:  128
• Net Change:  0

2022

• Outlets at the Start of the Year:  128
• Outlets at the End of the Year:  133
• Net Change:  +5

2023

• Outlets at the Start of the Year:  133
• Outlets at the End of the Year:  133
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  5
• Net Change:  +2

2022

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  8
• Net Change:  +3

2023

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  16
• Net Change:  +8

Section IV – News Updates on the 1-800-Got-Junk? Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the 1-800-Got-Junk? Franchise (Item 19, 2024 FDD)

• The following financial performance information is presented in three parts, and contains historical information on the Gross Revenue results of specified 1-800-Got-Junk? franchisees (including the franchisor’s Flywheel affiliates that own and operate outlets under franchise agreements).

• The information is compiled from data supplied by 1-800-Got-Junk? franchisees, which 1-800-Got-Junk? has not audited.

• Unless otherwise specified, “Gross Revenue” means the amount of actual gross sales to consumers for products and services less taxes collected and credits or refunds given in accordance with 1-800-Got-Junk?’s refund policy.

• For some tables in this Item 19, 1-800-Got-Junk? includes franchised businesses in Canada and Australia because these Canadian and Australian franchisees operate businesses that are substantially similar to those in the U.S., with substantially similar performance results and no material differences between the data of the three groups other than the currency.

Part 1 – Average 2023 Gross Revenue of U.S. Franchisees

• The following tables present the average, median, highest, and lowest Gross Revenue realized by the 149 Franchised Businesses (140 unaffiliated franchisees and 9 Flywheel franchisees) that were operating in the U.S. for more than one day and made any gross sales at any point during the 12-month period ending on December 31, 2023.

• For purposes of this table, outlets are grouped based on the number of years they have been operating.

• Because 1-800-Got-Junk? franchisees own different numbers of subterritories, 1-800-Got-Junk? also provides in the charts below the average, median, highest, and lowest Gross Revenue on a per-subterritory basis.

• Of the U.S. outlets reported in the chart below: the average number of subterritories owned is 23, with the fewest number owned being 5, and the largest number owned being 89; the median number of subterritories owned is 17.

Average Gross Revenue of 1-800-Got-Junk? Franchisees for the 12 Months Ending December 31, 2023

Franchisees Operating for More Than One Day, But Less Than 12 Months

• Average Gross Revenue Per Franchisee:  $220,855
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  3/50%
• Median Gross Revenue Per Franchisee:  $217,474
• Highest Gross Revenue Per Franchisee:  $430,613
• Lowest Gross Revenue Per Franchisee:  $10,580

• Average Gross Revenue Per Subterritory:  $22,424
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  3/50%
• Median Gross Revenue Per Subterritory:  $23,146
• Highest Gross Revenue Per Subterritory:  $42,048
• Lowest Gross Revenue Per Subterritory:  $1,176

Franchisees Operating for More Than 12 Months, But Less Than 24 Months

• Average Gross Revenue Per Franchisee:  $511,647
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  4/50%
• Median Gross Revenue Per Franchisee:  $516,542
• Highest Gross Revenue Per Franchisee:  $724,389
• Lowest Gross Revenue Per Franchisee:  $264,273

• Average Gross Revenue Per Subterritory:  $48,001
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  5/63%
• Median Gross Revenue Per Subterritory:  $49,721
• Highest Gross Revenue Per Subterritory:  $65,723
• Lowest Gross Revenue Per Subterritory:  $26,427

Franchisees Operating for More Than 24 Months, But Less Than 36 Months

• Average Gross Revenue Per Franchisee:  $422,996
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  1/50%
• Median Gross Revenue Per Franchisee:  $422,996
• Highest Gross Revenue Per Franchisee:  $520,450
• Lowest Gross Revenue Per Franchisee:  $325,542

• Average Gross Revenue Per Subterritory:  $61,468
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  1/50%
• Median Gross Revenue Per Subterritory:  $61,468
• Highest Gross Revenue Per Subterritory:  $65,108
• Lowest Gross Revenue Per Subterritory:  $57,828

Franchisees Operating for More Than 36 Months, But Less Than 48 Months

• Average Gross Revenue Per Franchisee:  $924,943
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  1/100%
• Median Gross Revenue Per Franchisee:  $924,943
• Highest Gross Revenue Per Franchisee:  $924,943
• Lowest Gross Revenue Per Franchisee:  $924,943

• Average Gross Revenue Per Subterritory:  $102,771
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  1/100%
• Median Gross Revenue Per Subterritory:  $102,771
• Highest Gross Revenue Per Subterritory:  $102,771
• Lowest Gross Revenue Per Subterritory:  $102,771

Franchisees Operating for More Than 48 Months, But Less Than 60 Months

• Average Gross Revenue Per Franchisee:  N/A
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  N/A
• Median Gross Revenue Per Franchisee:  N/A
• Highest Gross Revenue Per Franchisee:  N/A
• Lowest Gross Revenue Per Franchisee:  N/A

• Average Gross Revenue Per Subterritory:  N/A
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  N/A
• Median Gross Revenue Per Subterritory:  N/A
• Highest Gross Revenue Per Subterritory:  N/A
• Lowest Gross Revenue Per Subterritory:  N/A

Franchisees Operating for More Than 60 Months, But Less Than 72 Months

• Average Gross Revenue Per Franchisee:  $2,663,889
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  1/50%
• Median Gross Revenue Per Franchisee:  $2,663,889
• Highest Gross Revenue Per Franchisee:  $4,765,026
• Lowest Gross Revenue Per Franchisee:  $562,753

• Average Gross Revenue Per Subterritory:  $102,435
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  1/50%
• Median Gross Revenue Per Subterritory:  $102,435
• Highest Gross Revenue Per Subterritory:  $153,711
• Lowest Gross Revenue Per Subterritory:  $51,159

Franchisees Operating for More Than 72 Months

• Average Gross Revenue Per Franchisee:  $3,440,358
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  46/38%
• Median Gross Revenue Per Franchisee:  $2,672,372
• Highest Gross Revenue Per Franchisee:  $10,603,705
• Lowest Gross Revenue Per Franchisee:  $518,155

• Average Gross Revenue Per Subterritory:  $163,527
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  50/41%
• Median Gross Revenue Per Subterritory:  $147,119
• Highest Gross Revenue Per Subterritory:  $469,540
• Lowest Gross Revenue Per Subterritory:  $25,428

All Franchisees

• Average Gross Revenue Per Franchisee:  $3,062,860
• Average Gross Revenue Per Subterritory:  $148,114
• Average Number of Subterritories:  20.7

Flywheel Locations Operated as Franchisees of 1-800-Got-Junk? (Franchisees Operating for More Than 72 Months)

• Total Flywheel Locations:  9

• Average Gross Revenue Per Franchisee:  $4,297,376
• Number and Percentage of Franchisees At or Above Average Per Franchisee:  5/56%
• Median Gross Revenue Per Franchisee:  $4,345,117
• Highest Gross Revenue Per Franchisee:  $9,179,590
• Lowest Gross Revenue Per Franchisee:  $1,357,376

• Average Gross Revenue Per Subterritory:  $193,208
• Number and Percentage of Franchisees At or Above Average Per Subterritory:  5/56%
• Median Gross Revenue Per Subterritory:  $202,386
• Highest Gross Revenue Per Subterritory:  $278,169
• Lowest Gross Revenue Per Subterritory:  $109,131

• The revenue reported by franchisees includes partial-year performance by franchisees before the franchises were transferred to new owners or that closed during the year, including 7 franchises that were operated by franchisees for at least 10 months of the year before being sold to Flywheel affiliates (Cleveland East, Jacksonville, Richmond Metro, Virginia Beach, Foxboro, Allentown, and Lancaster).

• The revenue reported in this chart includes 9 franchisees that were owned and operated by subsidiaries of 1-800-Got-Junk?’s affiliate, Flywheel, for the entire calendar year in 2023. There are no Flywheel franchisees that were in operation for less than 72 months (including the time such outlets were operated by franchisees).
• As of December 31, 2023, 7 of 1-800-Got-Junk?’s 16 Flywheel locations (Cleveland East, Jacksonville, Richmond Metro, Virginia Beach, Foxboro, Allentown, and Lancaster) had been operated by Flywheel affiliates for less than 2 months after being acquired from franchisees, so they are included in the Franchisee Chart above.

• The average is calculated by adding all figures up and dividing by the number of figures counted.

• The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.

• The “per-subterritory” average, median, high, and low Gross Revenue figures were calculated by (i) first determining each franchisee’s average Gross Revenue per subterritory (dividing the Gross Revenue of the particular franchise by the number of subterritories owned by that franchise), and then (ii) using those results to calculate the overall per-subterritory average, and to determine the median, highest, and lowest per-subterritory performance.

• The financial performance figures do not reflect the costs of sales or operating expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 2 – Franchisees by Gross Revenue Range

• The following table presents the number and percentage of 1-800-Got-Junk? Franchised Businesses that had 2023 Gross Revenues in four performance ranges, and includes data from all Franchised Businesses operating in the United States, Canada, and Australia that reported revenue and were open on December 31, 2023.

Total Gross Revenue of 1-800-Got-Junk? Franchisees for the 12 Months Ending December 31, 2023 (Reported in US Dollars)

United States

• Total Number of Franchisees Reported:  149
• Number and Percentage Making Total Gross Revenue Over $1,000,000:  119/80%
• Number and Percentage Making Total Gross Revenue From $750,001 to $1,000,000:  7/5%
• Number and Percentage Making Total Gross Revenue From $500,001 to $750,000:  13/9%
• Number and Percentage Making Total Gross Revenue of $500,000 or Less:  10/7%

Canada

• Total Number of Franchisees Reported:  20
• Number and Percentage Making Total Gross Revenue Over $1,000,000:  14/70%
• Number and Percentage Making Total Gross Revenue From $750,001 to $1,000,000:  4/20%
• Number and Percentage Making Total Gross Revenue From $500,001 to $750,000:  2/10%
• Number and Percentage Making Total Gross Revenue of $500,000 or Less:  0/0%

Australia

• Total Number of Franchisees Reported:  6
• Number and Percentage Making Total Gross Revenue Over $1,000,000:  6/100%
• Number and Percentage Making Total Gross Revenue From $750,001 to $1,000,000:  0/0%
• Number and Percentage Making Total Gross Revenue From $500,001 to $750,000:  0/0%
• Number and Percentage Making Total Gross Revenue of $500,000 or Less:  0/0%

Part 3 – System-Wide Revenue and Growth

A. Total 2023 Gross Revenue of 1-800-Got-Junk? Franchisees (Reported in US Dollars)

• The following table presents the total Gross Revenue from all 1-800-Got-Junk? Franchised Businesses operating in the United States, Canada, and Australia for at least 1 day in the 2023 calendar year.

• United States:  $467,476,713
• Canada:  $42,064,029
• Australia:  $15,649,548

B. 2023, 2022, 2021 Gross Revenue Totals and Growth Over Same Period of 1-800-Got-Junk? Franchisees (Reported in US Dollars)

• The table below presents the total Gross Revenue from all 1-800-Got-Junk? Franchised Businesses operating in the United States, Canada, and Australia for at least 1 day in the 2023, 2022, and 2021 calendar years, respectively, and also presents the dollar amount and percentage of Gross Revenue growth over that period.

2023

• System-Wide Gross Revenue:  $525,190,289
• Annual Growth in Gross Revenue:  -$2,937,216
• Annual % Growth in Gross Revenue:  -%0.6%
• Two-Year Growth in Gross Revenue:  $41,481,258
• Two-Year % Growth in Gross Revenue:  8.6%

2022

• System-Wide Gross Revenue:  $528,127,505
• Annual Growth in Gross Revenue:  $44,418,474
• Annual % Growth in Gross Revenue:  9.2%
• Two-Year Growth in Gross Revenue:  $139,155,484
• Two-Year % Growth in Gross Revenue:  35.8%

2021

• System-Wide Gross Revenue:  $483,709,031
• Annual Growth in Gross Revenue:  $94,737,010
• Annual % Growth in Gross Revenue:  24.4%
• Two-Year Growth in Gross Revenue:  $123,529,270
• Two-Year % Growth in Gross Revenue:  34.3%

Section VI – 1-800-Got-Junk? Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️