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

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

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

Section III – Number of franchised and company-owned Junk King 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 Junk King franchise opportunity

Section V – Presentation and analysis of Junk King’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 sales for the 158 franchised Junk King businesses that had been open and continuously operated during the entire 12-month period ended on December 31, 2023, by quartile

• 2023 average, median, highest, and lowest gross hauling revenue for the 158 franchised Junk King businesses that had been open and continuously operated during the entire 12-month period ended on December 31, 2023, by quartile

• 2023 average, median, highest, and lowest gross dumpster revenue for the 68 franchised Junk King businesses that offered dumpster services and had been open and continuously operated during the entire 12-month period ended on December 31, 2023, by quartile

• 2023 average, median, highest, and lowest gross sales for the 158 franchised Junk King businesses that had been open and continuously operated during the entire 12-month period ended on December 31, 2023, based on year in which such franchise business opened (2010-2022)
  

• 2023 average, median, highest, and lowest gross hauling revenue for the 158 franchised Junk King businesses that had been open and continuously operated during the entire 12-month period ended on December 31, 2023, based on year in which such franchise business opened (2010-2022)

• 2023 average, median, highest, and lowest gasoline, dumping fees, labor expenses, royalty fees, customer care center fees, cost of services sold, and gross profit as a percentage of gross sales for the 112 franchised Junk King businesses that had been open and continuously operated during the entire 12-month period ended on December 31, 2023 and responded to the franchisor’s survey

Section VI – Key ratios, comparables, computations, and analyses for the Junk King franchise opportunity (exclusive content for Platinum subscribers)

Section I – Junk King Franchise Costs

• Initial Franchise Fee:  $54,000 to $78,000
• Travel and Living Expenses While Training:  $1,500 to $7,000
• Inventory and Supplies:  $500 to $1,000
• Fixtures, Furniture, and Equipment:  $2,000 to $3,000
• Signage:  $1,000 to $2,000
• Vehicles:  $15,000 to $20,000
• Office and Warehouse Lease:  $1,500 to $6,000
• Leasehold Improvements:  $0 to $5,000
• Prepaid Expenses/Insurance:  $1,800 to $3,000
• Pre-Opening Payroll:  $1,000 to $5,000
• Additional Funds for 3 Months:  $15,000 to $50,000
• Total Estimated Junk King Franchise Costs:  $93,300 to $180,000

Section II – Junk King’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $54,000 to $78,000

• License Fee:  (a) 8% of Gross Sales for the first 18 months immediately following the opening of the Franchised Business, and (b) beginning in the 19th month of operation of the Franchised Business, the greater of (i) 8% of Gross Sales; or (ii) $2,000 (“Minimum License Fee”)

• Marketing, Advertising, and Promotion (MAP) Fee:  currently, $625 per month for the first 12 months of operation and then $845 per month each month thereafter

• Local Marketing Groups:  not to exceed 3% of Gross Sales; currently $400/month (and currently new franchisees receive a 6-month waiver of this fee). Junk King may require that a portion of your LMG contribution be paid for use towards the Neighborly marketing and brand awareness initiatives.

Section III – Number of Franchised and Company-Owned Junk King Outlets

Franchised

2021

• Outlets at the Start of the Year:  103
• Outlets at the End of the Year:  132
• Net Change:  +29

2022

• Outlets at the Start of the Year:  132
• Outlets at the End of the Year:  158
• Net Change:  +26

2023

• Outlets at the Start of the Year:  158
• Outlets at the End of the Year:  169
• Net Change:  +11

Company-Owned

2021

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  3
• Net Change:  -3

2022

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

2023

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

Section IV – News Updates on the Junk King Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Junk King Franchise (Item 19, 2024 FDD)

• The financial performance representations included in this Item 19 present data for the 52-week period beginning on January 1, 2023 and ending on December 31, 2023 (the “Reporting Period”) for Franchised Businesses that had been open and continuously operated during the entire 12-month period ended on December 31, 2023 (the “Continually Operated Businesses”).

• Franchised Businesses that were in operation for less than 12 full months during the Reporting Period (including affiliate-owned units acquired by a franchisee) (the “Excluded Businesses”) and affiliate-owned outlets are not included in this Item 19.

• As of December 31, 2023, there were 169 Franchised Businesses in operation in the U.S., and 158 of them had been open and continuously operated as Franchised Businesses for more than 12 months and have been included in this Item 19 as Continually Operated Businesses.

• Eleven Franchised Businesses are Excluded Businesses that have not been included in this Item 19 because they opened during the year 2023 and did not operate for the full 12 months of the Reporting Period.

• Parts 1-A, 1-B, and 2 include data for all 158 Continually Operated Businesses.

• Of the 158 Continually Operated Businesses, 68 businesses offered Dumpster Services during the entire Reporting Period. Part 1-C includes data for the Reporting Period for the 68 Continually Operated Businesses that offered Dumpster Services during the Reporting Period.

• Part 3 includes data for 106 of the Continually Operated Businesses that responded to Junk King’s survey regarding Cost of Services Sold data as a percentage of Gross Sales for the Reporting Period.

• Two franchised businesses closed during the Reporting Period and are therefore excluded from this Item 19 because they did not report data for all 12 months of the Reporting Period. No business closed after being open for less than 12 months.

• Also excluded from this Item 19 are five franchised businesses that were reacquired by Junk King during 2023.

Part 1A – Gross Sales in Calendar Year 2023 for Continually Operated Businesses

• “Gross Sales” means the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of – or in connection with – a Junk King business whether under any of the Marks or otherwise.

• Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that Junk King authorizes in writing.

• “Gross Sales” equals the sum of Gross Hauling Revenues and Gross Dumpster Revenues.

Top Quartile

• Number of Franchised Businesses in Subset:  40
• Average Gross Sales:  $1,181,111
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Sales:  14/35%
• Median Gross Sales:  $1,056,674
• Lowest Gross Sales:  $757,152
• Highest Gross Sales:  $2,522,250

2nd Quartile

• Number of Franchised Businesses in Subset:  39
• Average Gross Sales:  $584,840
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Sales:  17/44%
• Median Gross Sales:  $545,499
• Lowest Gross Sales:  $477,762
• Highest Gross Sales:  $749,185

3rd Quartile

• Number of Franchised Businesses in Subset:  39
• Average Gross Sales:  $391,281
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Sales:  16/41%
• Median Gross Sales:  $376,690
• Lowest Gross Sales:  $322,312
• Highest Gross Sales:  $475,980

Bottom Quartile

• Number of Franchised Businesses in Subset:  40
• Average Gross Sales:  $237,591
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Sales:  21/53%
• Median Gross Sales:  $241,665
• Lowest Gross Sales:  $91,855
• Highest Gross Sales:  $318,475

All Franchised Outlets

• Number of Franchised Businesses in Subset:  158
• Average Gross Sales:  $600,106
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Sales:  55/35%
• Median Gross Sales:  $476,871
• Lowest Gross Sales:  $91,855
• Highest Gross Sales:  $2,522,250

Part 1B – Gross Hauling Revenues in Calendar Year 2023 for Continually Operated Businesses

• In this Item 19, “Gross Hauling Revenues” mean Gross Sales generated from hauling sales only.

Top Quartile

• Number of Franchised Businesses in Subset:  40
• Average Gross Hauling Revenue:  $1,093,851
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Hauling Revenue:  13/33%
• Median Gross Hauling Revenue:  $933,318
• Lowest Gross Hauling Revenue:  $695,229
• Highest Gross Hauling Revenue:  $2,522,250

2nd Quartile

• Number of Franchised Businesses in Subset:  39
• Average Gross Hauling Revenue:  $552,692
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Hauling Revenue:  18/46%
• Median Gross Hauling Revenue:  $532,656
• Lowest Gross Hauling Revenue:  $446,495
• Highest Gross Hauling Revenue:  $690,893

3rd Quartile

• Number of Franchised Businesses in Subset:  39
• Average Gross Hauling Revenue:  $371,835
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Hauling Revenue:  17/44%
• Median Gross Hauling Revenue:  $362,772
• Lowest Gross Hauling Revenue:  $296,817
• Highest Gross Hauling Revenue:  $444,232

Bottom Quartile

• Number of Franchised Businesses in Subset:  40
• Average Gross Hauling Revenue:  $220,016
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Hauling Revenue:  19/48%
• Median Gross Hauling Revenue:  $218,143
• Lowest Gross Hauling Revenue:  $91,855
• Highest Gross Hauling Revenue:  $294,891

All Franchised Outlets

• Number of Franchised Businesses in Subset:  158
• Average Gross Hauling Revenue:  $560,830
• Number and Percentage of Outlets Attaining or Exceeding Average Gross Hauling Revenue:  56/35%
• Median Gross Hauling Revenue:  $445,363
• Lowest Gross Hauling Revenue:  $91,855
• Highest Gross Hauling Revenue:  $2,522,250

Part 1C – Gross Dumpster Revenues in Calendar Year 2023 for Continually Operated Businesses

• “Gross Dumpster Revenues” means Gross Sales generated from dumpster sales only. Franchisees are permitted to offer Dumpster Services.

• Gross Hauling Revenues and Gross Dumpster Revenues are not adjusted for cost of goods sold, operating expenses, royalties, or other costs or expenses that must be deducted from gross sales to obtain net income or profit.

• Neither Gross Hauling Revenues nor Gross Dumpster Revenues are the same as Gross Sales, which includes all products and services sold by a franchisee.

Top Quartile

• Number of Franchised Businesses in Subset:  17
• Average Dumpster Revenue:  $187,029
• Number and Percentage of Outlets Attaining or Exceeding Average Dumpster Revenue:  6/35%
• Median Dumpster Revenue:  $164,559
• Lowest Dumpster Revenue:  $118,820
• Highest Dumpster Revenue:  $464,413

2nd Quartile

• Number of Franchised Businesses in Subset:  17
• Average Dumpster Revenue:  $84,420
• Number and Percentage of Outlets Attaining or Exceeding Average Dumpster Revenue:  8/47%
• Median Dumpster Revenue:  $82,812
• Lowest Dumpster Revenue:  $60,407
• Highest Dumpster Revenue:  $118,060

3rd Quartile

• Number of Franchised Businesses in Subset:  17
• Average Dumpster Revenue:  $51,859
• Number and Percentage of Outlets Attaining or Exceeding Average Dumpster Revenue:  9/53%
• Median Dumpster Revenue:  $54,148
• Lowest Dumpster Revenue:  $39,586
• Highest Dumpster Revenue:  $60,264

Bottom Quartile

• Number of Franchised Businesses in Subset:  17
• Average Dumpster Revenue:  $25,274
• Number and Percentage of Outlets Attaining or Exceeding Average Dumpster Revenue:  8/47%
• Median Dumpster Revenue:  $22,779
• Lowest Dumpster Revenue:  $9,019
• Highest Dumpster Revenue:  $38,942

All Franchised Outlets

• Number of Franchised Businesses in Subset:  68
• Average Dumpster Revenue:  $87,146
• Number and Percentage of Outlets Attaining or Exceeding Average Dumpster Revenue:  24/35%
• Median Dumpster Revenue:  $60,336
• Lowest Dumpster Revenue:  $9,019
• Highest Dumpster Revenue:  $464,413

Part 2A – Gross Sales in Calendar Year 2023 for Continually Operated Businesses Based on Year in Which Such Franchised Business Opened

• Parts 2A and 2B present Gross Sales and Gross Hauling Revenue, respectively, in Calendar Year 2023 based on the number of years each franchised outlet had been open and operating as of December 31, 2023.

1 to 2 (Opened in 2022)

• Number of Franchised Businesses in Category:  28
• Average Gross Sales:  $341,278
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  11/39%
• Median Gross Sales:  $317,246
• Lowest Gross Sales:  $91,855
• Highest Gross Sales:  $1,194,712

2 to 3 (Opened in 2021)

• Number of Franchised Businesses in Category:  25
• Average Gross Sales:  $434,855
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  9/36%
• Median Gross Sales:  $367,374
• Lowest Gross Sales:  $118,664
• Highest Gross Sales:  $1,089,058

3 to 4 (Opened in 2020)

• Number of Franchised Businesses in Category:  11
• Average Gross Sales:  $580,083
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  3/27%
• Median Gross Sales:  $477,762
• Lowest Gross Sales:  $245,213
• Highest Gross Sales:  $1,212,404

4 to 5 (Opened in 2019)

• Number of Franchised Businesses in Category:  5
• Average Gross Sales:  $473,647
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  2/40%
• Median Gross Sales:  $436,260
• Lowest Gross Sales:  $225,456
• Highest Gross Sales:  $918,710

5 to 6 (Opened in 2018)

• Number of Franchised Businesses in Category:  7
• Average Gross Sales:  $471,074
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  3/43%
• Median Gross Sales:  $446,496
• Lowest Gross Sales:  $361,409
• Highest Gross Sales:  $619,511

6 to 7 (Opened in 2017)

• Number of Franchised Businesses in Category:  15
• Average Gross Sales:  $495,247
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  3/20%
• Median Gross Sales:  $355,009
• Lowest Gross Sales:  $207,741
• Highest Gross Sales:  $1,950,357

7 to 8 (Opened in 2016)

• Number of Franchised Businesses in Category:  10
• Average Gross Sales:  $655,473
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  2/20%
• Median Gross Sales:  $592,500
• Lowest Gross Sales:  $239,833
• Highest Gross Sales:  $1,908,725

8 to 9 (Opened in 2015)

• Number of Franchised Businesses in Category:  7
• Average Gross Sales:  $720,071
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  3/43%
• Median Gross Sales:  $693,984
• Lowest Gross Sales:  $444,232
• Highest Gross Sales:  $1,165,001

9 to 10 (Opened in 2014)

• Number of Franchised Businesses in Category:  6
• Average Gross Sales:  $763,205
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  2/33%
• Median Gross Sales:  $715,761
• Lowest Gross Sales:  $461,567
• Highest Gross Sales:  $1,093,569

10 to 11 (Opened in 2013)

• Number of Franchised Businesses in Category:  6
• Average Gross Sales:  $510,362
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  4/67%
• Median Gross Sales:  $513,433
• Lowest Gross Sales:  $211,961
• Highest Gross Sales:  $771,435

11 to 12 (Opened in 2012)

• Number of Franchised Businesses in Category:  12
• Average Gross Sales:  $824,303
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  5/42%
• Median Gross Sales:  $621,628
• Lowest Gross Sales:  $247,574
• Highest Gross Sales:  $1,962,999

12 to 13 (Opened in 2011)

• Number of Franchised Businesses in Category:  14
• Average Gross Sales:  $877,097
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  4/29%
• Median Gross Sales:  $769,999
• Lowest Gross Sales:  $465,607
• Highest Gross Sales:  $2,522,250

13 to 14 (Opened in 2010)

• Number of Franchised Businesses in Category:  12
• Average Gross Sales:  $1,125,551
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  6/50%
• Median Gross Sales:  $1,123,779
• Lowest Gross Sales:  $311,764
• Highest Gross Sales:  $2,089,650

All Franchised Outlets

• Number of Franchised Businesses in Category:  158
• Average Gross Sales:  $600,106
• Number and Percentage of Franchised Businesses Attaining or Exceeding Average Gross Sales:  55/35%
• Median Gross Sales:  $476,871
• Lowest Gross Sales:  $91,855
• Highest Gross Sales:  $2,522,250

Part 2B – Gross Hauling Revenues in Calendar Year 2023 for Continually Operated Businesses Based on Year in Which Such Franchised Business Opened

1 to 2 (Opened in 2022)

• Number of Franchised Businesses in Category:  28
• Average Gross Hauling Revenue:  $320,389
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  10/36%
• Median Gross Hauling Revenue:  $278,268
• Lowest Gross Hauling Revenue:  $91,855
• Highest Gross Hauling Revenue:  $1,076,652

2 to 3 (Opened in 2021)

• Number of Franchised Businesses in Category:  25
• Average Gross Hauling Revenue:  $404,095
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  10/40%
• Median Gross Hauling Revenue:  $342,472
• Lowest Gross Hauling Revenue:  $118,664
• Highest Gross Hauling Revenue:  $942,828

3 to 4 (Opened in 2020)

• Number of Franchised Businesses in Category:  11
• Average Gross Hauling Revenue:  $546,690
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  3/27%
• Median Gross Hauling Revenue:  $477,762
• Lowest Gross Hauling Revenue:  $245,213
• Highest Gross Hauling Revenue:  $1,138,166

4 to 5 (Opened in 2019)

• Number of Franchised Businesses in Category:  5
• Average Gross Hauling Revenue:  $504,912
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  2/40%
• Median Gross Hauling Revenue:  $436,260
• Lowest Gross Hauling Revenue:  $228,138
• Highest Gross Hauling Revenue:  $918,710

5 to 6 (Opened in 2018)

• Number of Franchised Businesses in Category:  7
• Average Gross Hauling Revenue:  $474,189
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  3/43%
• Median Gross Hauling Revenue:  $446,495
• Lowest Gross Hauling Revenue:  $361,409
• Highest Gross Hauling Revenue:  $641,315

6 to 7 (Opened in 2017)

• Number of Franchised Businesses in Category:  15
• Average Gross Hauling Revenue:  $472,606
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  3/20%
• Median Gross Hauling Revenue:  $332,295
• Lowest Gross Hauling Revenue:  $195,576
• Highest Gross Hauling Revenue:  $1,950,357

7 to 8 (Opened in 2016)

• Number of Franchised Businesses in Category:  10
• Average Gross Hauling Revenue:  $634,256
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  2/20%
• Median Gross Hauling Revenue:  $546,472
• Lowest Gross Hauling Revenue:  $239,833
• Highest Gross Hauling Revenue:  $2,044,886

8 to 9 (Opened in 2015)

• Number of Franchised Businesses in Category:  7
• Average Gross Hauling Revenue:  $683,438
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  3/43%
• Median Gross Hauling Revenue:  $646,521
• Lowest Gross Hauling Revenue:  $444,232
• Highest Gross Hauling Revenue:  $969,703

9 to 10 (Opened in 2014)

• Number of Franchised Businesses in Category:  6
• Average Gross Hauling Revenue:  $693,859
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  2/33%
• Median Gross Hauling Revenue:  $626,739
• Lowest Gross Hauling Revenue:  $461,567
• Highest Gross Hauling Revenue:  $996,946

10 to 11 (Opened in 2013)

• Number of Franchised Businesses in Category:  6
• Average Gross Hauling Revenue:  $465,651
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  3/50%
• Median Gross Hauling Revenue:  $453,589
• Lowest Gross Hauling Revenue:  $211,961
• Highest Gross Hauling Revenue:  $711,028

11 to 12 (Opened in 2012)

• Number of Franchised Businesses in Category:  12
• Average Gross Hauling Revenue:  $860,894
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  4/33%
• Median Gross Hauling Revenue:  $593,009
• Lowest Gross Hauling Revenue:  $221,054
• Highest Gross Hauling Revenue:  $2,633,850

12 to 13 (Opened in 2011)

• Number of Franchised Businesses in Category:  14
• Average Gross Hauling Revenue:  $800,175
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  4/29%
• Median Gross Hauling Revenue:  $676,553
• Lowest Gross Hauling Revenue:  $349,539
• Highest Gross Hauling Revenue:  $2,522,250

13 to 14 (Opened in 2010)

• Number of Franchised Businesses in Category:  12
• Average Gross Hauling Revenue:  $1,023,188
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  5/42%
• Median Gross Hauling Revenue:  $933,318
• Lowest Gross Hauling Revenue:  $311,764
• Highest Gross Hauling Revenue:  $1,956,126

All Franchised Outlets

• Number of Franchised Businesses in Category:  158
• Average Gross Hauling Revenue:  $569,082
• Number and Percentage of Businesses Attaining or Exceeding Average Gross Hauling Revenue:  55/35%
• Median Gross Hauling Revenue:  $445,363
• Lowest Gross Hauling Revenue:  $91,855
• Highest Gross Hauling Revenue:  $2,633,850

Part 3 – Cost of Services Sold as a Percentage of Gross Sales in Calendar Year 2023 for Reporting Businesses

• Part 3 includes certain cost data for calendar year 2023 that Junk King has collected from Continually Operated Businesses that responded to a survey that Junk King circulated (“Reporting Businesses”).

Gasoline

• Average Percentage of Gross Sales:  4.8%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  65/53.3%
• Median Percentage of Gross Sales:  4.8%
• Lowest Percentage of Gross Sales:  2.5%
• Highest Percentage of Gross Sales:  7.6%

Dumping Fees

• Average Percentage of Gross Sales:  9.6%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  64/52.5%
• Median Percentage of Gross Sales:  9.4%
• Lowest Percentage of Gross Sales:  2.1%
• Highest Percentage of Gross Sales:  20.9%

Labor Expenses

• Average Percentage of Gross Sales:  24.1%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  53/43.4%
• Median Percentage of Gross Sales:  23.1%
• Lowest Percentage of Gross Sales:  9.5%
• Highest Percentage of Gross Sales:  41.4%

License Fees

• Average Percentage of Gross Sales:  8.0%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  122/100%
• Median Percentage of Gross Sales:  8.0%
• Lowest Percentage of Gross Sales:  8.0%
• Highest Percentage of Gross Sales:  8.0%

Customer Care Center Fees

• Average Percentage of Gross Sales:  4.4%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  73/59.8%
• Median Percentage of Gross Sales:  4.0%
• Lowest Percentage of Gross Sales:  2.0%
• Highest Percentage of Gross Sales:  5.0%

Cost of Services Sold

• Average Percentage of Gross Sales:  50.8%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  63/51.6%
• Median Percentage of Gross Sales:  50.1%
• Lowest Percentage of Gross Sales:  29.9%
• Highest Percentage of Gross Sales:  68.4%

Gross Profit Margin

• Average Percentage of Gross Sales:  49.2%
• Number and Percentage of Businesses Attaining or Exceeding Average Percentage of Gross Sales:  63/51.6%
• Median Percentage of Gross Sales:  49.9%
• Lowest Percentage of Gross Sales:  31.6%
• Highest Percentage of Gross Sales:  70.1%

• The percentages of Gross Sales for each Reporting Business are calculated by taking the total expenses for such category, dividing the expenses by Gross Sales, and multiplying the resulting figure by 100.

• “Dumping Fees” include the payments that a Franchised Business makes to garbage dumps or recycling centers to dispose of the junk that has been collected. These fees vary by municipality.

• “Labor Expenses” include all wages, benefits, and worker’s compensation expenses related to a Franchised Business’ employees.

• Please note that Junk King has adjusted the “Customer Care Center Fees” from the previous amount paid under the Franchise Agreement (4%) to the amount currently being paid by franchisees (5%).

• “Gross Profit Margin” is calculated for each Reporting Business using this formula: ((Gross Sales – Cost of Services Sold) / Gross Sales) * 100.

• “Cost of Services Sold” equals Gasoline + Dumping Fees + Labor Expenses + Customer Care Center Fees (which is 5% of Gross Sales) + License Fees (which is 8% of Gross Sales).

• In addition to the categories of expenses described in Part 3, Franchised Businesses incur additional expenses, such as (among others) rent, vehicle loan payments, MAP Fund fees and advertising expenses, insurance premiums, and utility fees.

• Some outlets have sold this much. Your individual results may differ. There is no assurance you will sell as much.

• The data is based on the historical results from existing Franchised Businesses as reported to Junk King by its franchisees.

Section VI – Junk King Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️