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

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

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

Section III – Number of franchised and company-owned redbox+ Dumpsters 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 redbox+ Dumpsters franchise opportunity

Section V – Presentation and analysis of redbox+ Dumpsters’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average monthly containers owned, rental rate, total revenue per rental, tipping fee per job, and monthly turns by owned container for the 62 redbox+ franchisees (207 territories) that were open and operating for the entire 2023 calendar year and reported the required data to the franchisor, and the 7 single-territory redbox+ franchisees, separately stated

• total and average container count as of January 1, 2023 and December 31, 2023, and percent growth, for the 62 redbox+ franchisees (207 territories) that were open and operating for the entire 2023 calendar year and reported the required data to the franchisor, and the 7 single-territory redbox+ franchisees, separately stated

• 2023 average variable expenses (landfill/tipping fees, production expenses, fuel expense, equipment and vehicles, bank and merchant fees, administrative/office expenses, professional fees) and fixed expenses (marketing spend, rent expense, payroll expense, insurance expense) for the 62 redbox+ franchisees (207 territories) that were open and operating for the entire 2023 calendar year and reported the required data to the franchisor, and the 7 single-territory redbox+ franchisees, separately stated

• 2023 average breakdown of revenue by source (container rental, excess tonnage fees) for the 62 redbox+ franchisees (207 territories) that were open and operating for the entire 2023 calendar year and reported the required data to the franchisor, and the 7 single-territory redbox+ franchisees, separately stated

• 2023 average, median, maximum, and minimum revenue per owner and revenue per franchise for the 62 redbox+ franchisees (207 territories) that were open and operating for the entire 2023 calendar year and reported the required data to the franchisor, and the 7 single-territory redbox+ franchisees, separately stated

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

Section I – redbox+ Dumpsters Franchise Costs

• redbox+ Dumpsters franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500
• Initial Containers:  $238,664 to $366,649
• Truck Equipment Package (“TEP”):  $87,765 to $99,114
• Truck:  $141,306 to $153,547
• Transportation:  $10,000 to $40,000
• Container Assembly/Set-Up Fee:  $4,000
• Proprietary GPS Tracking System and Point of Sale/CRM Software Package:  $1,209
• Computer Equipment and Software:  $3,000 to $5,000
• Rent and Utility Deposits:  $0 to $30,000
• Insurance Deposits and Premiums:  $10,200 to $17,850
• Pre-Opening Travel Expense:  $1,000 to $3,000
• Kick Start Marketing Program:  $6,400
• Professional Fees:  $2,250 to $5,750
• Business Permits and Licenses:  $250 to $1,000
• Office and Small Equipment:  $750 to $1,500
• Promotional Package:  $6,928
• Additional Funds – 3 Months:  $25,000 to $35,000
• Total Estimated redbox+ Dumpsters Franchise Costs:  $598,222 to $836,447

Section II – redbox+ Dumpsters’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• redbox+ Dumpsters’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,500
• Royalty:  between 6% and 8% of Gross Sales
• Brand Marketing Fee:  up to 2% of Gross Sales; currently 1.25% of Gross Sales
• Local Advertising:  5% of Gross Sales

Section III – Number of Franchised and Company-Owned redbox+ Dumpsters Outlets

Franchised

2021

• Outlets at the Start of the Year:  162
• Outlets at the End of the Year:  251
• Net Change:  +89

2022

• Outlets at the Start of the Year:  251
• Outlets at the End of the Year:  277
• Net Change:  +26

2023

• Outlets at the Start of the Year:  277
• Outlets at the End of the Year:  271
• Net Change:  -6

Company-Owned

2021

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

2022

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

2023

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

Section IV – News Updates on the redbox+ Dumpsters Franchise

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

• This Item sets forth historical financial information experienced by redbox+ franchisees for the period from January 1, 2023 to December 31, 2023 (the “Measurement Period”), which was provided to redbox+ by the Reporting Franchisees, as defined below.

• As of December 31, 2023, there were 77 franchisees that operated 271 redbox+ Franchised Businesses. Of the 77 franchisees, 74 had their Franchised Businesses open and operating for the entirety of 2023 (the “Measurement Period”). The 3 franchisees who were not open the full Measurement Period operated a total of 8 Franchised Businesses that opened mid-way through the year.

• Of the 74 franchisees that had been open and operating for the full Measurement Period, 12 did not report the required data to redbox+ or did not collect the requested data during the Measurement Period. The data reported in this Item 19 is voluntarily supplied by redbox+ franchisees. Therefore, the “Reporting Franchisees” are 62 of the 74 franchisees that were open and operating during the Measurement Period, who collectively operate 207 of the 271, or 76%, of the Franchised Businesses.

• The Reporting Franchisees operate in territories with populations that range from 202,551 to 1,855,325.

• Franchisees operate either in single territories or multiple territories collectively as one business, however, each territory is subject to its own franchise agreement and obligations. Franchisees who operate multiple territories do not operate, account, or report each territory individually and the historical data reflected in this Item 19 is based on the totals for all territories owned in conjunction with their redbox+ Businesses.

• Therefore, in each Part of this Item, redbox+ included two presentations of the data: data from all Reporting Franchisees and data from single-territory operators only. Of the Reporting Franchisees, 7 are single-territory operators, which have territories that range in size from 305,399 to 1,281,192.

Part 1 – Fiscal 2023 KPI Reporting

• Part 1 of this Item sets forth certain key performance indicators (“KPIs”) achieved by the Reporting Franchisees during the Measurement Period, including Average Monthly Containers Owned, Average Monthly Turns by Utilized Container, Average Monthly Turns per Container, Average Rental Rate, Average Total Revenue per Rental Rate, and Average Tipping Fee per Job.

A. Average KPIs for 2023 – All Reporting Franchisees

• Number of Reporting Franchisees:  62 (207 Territories)

• Average Monthly Containers Owned:  70
• Rental Rate:  $503.64
• Total Revenue per Rental:  $617.37
• Tipping Fee per Job:  $169.13
• Monthly Turns by Owned Container:  1.65x

B. Average KPIs for 2023 – Single-Territory Franchisees

• Number of Reporting Franchisees:  7

• Average Monthly Containers Owned:  50
• Rental Rate:  $482.30
• Total Revenue per Rental:  $631.42
• Tipping Fee per Job:  $171.72
• Monthly Turns by Owned Container:  1.33x

• “Average Monthly Containers Owned” is defined as the sum of containers owned at the beginning of each month in the Measurement Period divided by 12 months.

• “Monthly Turns by Owned Container” is defined as the total number of rentals in a month divided by the total number of containers operated by the franchisee.

• “Rental Rate” is defined as the total cost to a customer to rent a single redbox+ container, based on a maximum amount of tonnage. redbox+ calculated “Average Rental Rate” by taking the sum of the Reporting Franchisees’ Average Rental Rate per rental for each month reported and dividing by the number of reporting periods.

• “Total Revenue per Rental” is defined as the Rental Rate plus additional revenue, including Excess Tonnage Fees, Additional Day Fees, and Other Related Fees charged to a customer to rent a single redbox+ container for a defined length of time based on a maximum amount of tonnage. redbox+ calculated “Average Total Revenue per Rental” by taking the sum of the Reporting Franchisees’ Average Total Revenue per Rental for each month reported and dividing by the number of reporting periods.

• “Tipping Fee” is defined as a disposal fee charged by the local landfill or transfer station. Fees are typically set and charged based on cost per ton of debris disposed. redbox+ calculated “Average Tipping Fee per Rental” by taking the sum of the Reporting Franchisees’ Tipping Fees reported for the Measurement Period and dividing by the number of reported rentals during the Measurement Period.

Part 2 – Total Reporting Franchisee Container Count, Average Container Count During the Measurement Period, and Growth in Container Count

• Part 2 of this item sets forth the Average Monthly Containers Owned, and the Total Number of Containers Owned by the Reporting Franchisees during the Measurement Period.

A. Container Count – All Reporting Franchisees

• Number of Reporting Franchisees:  62 (207 Territories)

Total Container Count

• Beginning:  4,183
• End:  4,439
• % Growth:  6.1%

Average Container Count

• Beginning:  67
• End:  72
• % Growth:  6.1%

B. Container Count – Single-Territory Franchisees

• Number of Reporting Franchisees:  7

Total Container Count

• Beginning:  352
• End:  352
• % Growth:  0.0%

Average Container Count

• Beginning:  50
• End:  50
• % Growth:  0.0%

Part 3 – Variable Expenses as a Percentage of Sales, and Amount of Fixed Expenses

• Part 3 of this Item sets forth the average variable operating expenses as a percentage of sales and average fixed expense spending incurred by the Reporting Franchisees during the Measurement Period.

A. 2023 Average Variable Expenses as % of Sales and 2023 Average Fixed Expenses in $ Volume – All Reporting Franchisees

• Number of Reporting Franchisees:  62 (207 Territories)

Average Variable Expenses

• COS – Landfill/Tipping Fees:  27.2%
• COS – Production Expenses:  3.7%
• COS – Fuel Expense:  7.1%
• COS – Equipment and Vehicles:  4.6%
• Bank and Merchant Fees:  1.9%
• Administrative/Office Expenses:  2.9%
• Professional Fees:  1.8%

Average Fixed Expenses

• Marketing Spend:  $20,174
• Rent Expense:  $27,520
• Payroll Expense:  $162,817 (Payroll Expense/Truck: $62,902)
• Insurance Expense:  $37,380 (Payroll Expense/Truck: $16,797)

B. 2023 Average Variable Expenses as % of Sales and 2023 Average Fixed Expenses in $ Volume – Single-Territory Franchisees

• Number of Reporting Franchisees:  7

Average Variable Expenses

• COS – Landfill/Tipping Fees:  29.0%
• COS – Production Expenses:  2.6%
• COS – Fuel Expense:  6.9%
• COS – Equipment and Vehicles:  3.3%
• Bank and Merchant Fees:  1.3%
• Administrative/Office Expenses:  7.1%
• Professional Fees:  1.7%

Average Fixed Expenses

• Marketing Spend:  $7,582
• Rent Expense:  $27,703
• Payroll Expense:  $69,361 (Payroll Expense/Truck: $38,978)
• Insurance Expense:  $26,639 (Payroll Expense/Truck: $18,345)

• “COS – Landfill/Tipping Fees” includes all costs charged for the disposal of construction and demolition debris placed in the redbox+ containers for transportation and disposal.

• “COS – Production Expenses” contains all other costs related directly with production including contracted services, sales and franchise tax expense, work apparel and uniforms, field supplies, sewage and septic fees, and customer repairs.

• “COS – Fuel Expense” contains all fuel charges for the production vehicles involved in the delivery and pick-up of the redbox+ containers.

• “COS – Equipment & Vehicles” is defined as the other equipment and vehicle costs related to the delivery and pick-up of the redbox+ containers, including parking and tolls, repairs, GPS or other fleet management software, and license and registration on vehicles.

• “Bank and Merchant Fees” is defined as credit card (sales) processing fees and charges, as well as general bank related fees.

• “Administrative/Office Expense” includes expenses related to recruiting, computer supplies, computer and internet access, dues and subscriptions, education and training, business meals, general office supplies, postage, telephone, travel, and utilities.

• “Professional Fees” is defined as the costs for redbox+ required accounting/bookkeeping service, outside tax accounting services, and legal services.

• “Marketing Spend” includes all spending on advertising, commissions and referrals, website cost, and any expenditures related to an SEO program and related campaigns.

• “Rent Expense” is defined as rent for equipment facility and storage.

• “Payroll Expense” is defined as employee compensation for work, computed and paid on either an hourly basis, including overtime, or on a salary basis. All owner-related compensation is excluded from this number.

• “Payroll Expense/Truck” is defined as the total amount of Payroll Expense divided by the average number of trucks operated in the Measurement Period.

• “Insurance Expense” is defined as general liability insurance, property insurance, umbrella insurance, workers’ compensation insurance, and any other insurance.

• “Insurance Expense/Truck” is defined as the total amount of Insurance Expense divided by the average number of trucks operated in the Measurement Period.

• Excluded from this Part 3 are certain fixed expenses due and payable to redbox+ under the Franchise Agreement, including Royalties, Brand Marketing Fund, Software Fees, and Technology Fees.

Part 4 – Rental Revenue and Non-Rental Revenue During the Measurement Period as a Percentage of Total Revenue

• Part 4 of this Item sets forth the breakdown of Revenues between Container Rental Revenue, Excess Tonnage Fees, and Other Revenue Sources as a percentage of Total Revenue, as well as a comparison of Non-Rental Revenue Sources to Rental Revenue for the Reporting Franchisees.

A. Average Revenue by Source – All Reporting Franchisees

• Number of Reporting Franchisees:  62 (207 Territories)

Average Revenue Source

• Container Revenue:  82.6%
• Excess Tonnage Fees:  8.3%

Average Non-Rental Revenue

• % of Total Revenue:  16.2%
• % of Rental Revenue:  21.5%

B. Average Revenue by Source – Single-Territory Franchisees

• Number of Reporting Franchisees:  7

Average Revenue Source

• Container Revenue:  79.7%
• Excess Tonnage Fees:  12.1%

Average Non-Rental Revenue

• % of Total Revenue:  16.7%
• % of Rental Revenue:  26.0%

• “Container Rental” includes all container rental fees, drop fees, and base tonnage fees charged to customers for the rental of redbox+ containers.

• “Excess Tonnage Fees” is defined as charges to customers for tonnage in excess of the base tonnage allowed under the rental agreement.

• “Other Charges” is defined as revenue generated from charges for rental days in excess of the base days allowed under the rental agreement, additional toilet rentals, toilet cleaning fees, fuel surcharges, long-distance charges, prohibited items fees, additional trip fees, unscheduled trip fees, and any other fees not related to the Container Rental or Excess Tonnage Fees.

• “Non-Rental Revenue” is the sum of Excess Tonnage Fees and Other Charges.

Part 5 – Average and Median Revenue per Owner; Average and Median Revenue per Franchisee

• Part 5 of this Item sets forth the average and median revenue per owner, the average and median revenue per franchise, and the owners exceeding the average revenue per owner during the Measurement Period as reported by the 62 Reporting Franchisees.

A. 2023 Average and Median Revenue per Owner; Average and Median Revenue per Franchisee – All Reporting Franchisees

• Number of Owners:  62
• Number of Franchises:  207
• Average Franchises per Owner:  3.3

• Average Revenue per Owner:  $841,021
• Median Revenue per Owner:  $678,007
• Maximum Revenue per Owner:  $2,963,107
• Minimum Revenue per Owner:  $113,239
• Owners Exceeding Average Revenue per Owner:  39%

• Average Revenue per Franchise:  $286,673
• Median Revenue per Franchise:  $245,920
• Maximum Revenue per Franchise:  $1,220,337
• Minimum Revenue per Franchise:  $23,654
• Owners Exceeding Average Revenue per Franchise:  40%

B. 2023 Average and Median Revenue per Owner; Average and Median Revenue per Franchisee – Single-Territory Franchisees

• Number of Owners:  7
• Number of Franchises:  7
• Average Franchises per Owner:  1

• Average Revenue per Owner:  $422,654
• Median Revenue per Owner:  $372,241
• Maximum Revenue per Owner:  $672,812
• Minimum Revenue per Owner:  $252,372
• Owners Exceeding Average Revenue per Owner:  43%

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn this much.

• The figures above do not include certain costs associated with the establishment and operation of a Franchised Business, including initial franchise fees and wages. The above figures also exclude finance charges.

Section VI – redbox+ Dumpsters Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️