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

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

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

Section III – Number of franchised and company-owned Smash My Trash 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 Smash My Trash franchise opportunity

Section V – Presentation and analysis of Smash My Trash’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, maximum, and minimum gross sales, number of territories, and number of trucks for the 116 franchised Smash My Trash businesses (covering, in the aggregate, 479 territories) that were in operation during all of the 2023 calendar year

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

Section I – Smash My Trash Franchise Costs

• Initial Franchise Fee:  $49,500
• Rent, Utilities, and Leasehold Improvements:  $500 to $4,000
• Operating Assets:  $500 to $2,000
• Market Introduction Program:  $2,500 to $5,000
• Computer System:  $6,700 to $11,700
• Insurance:  $2,000 to $10,000
• Trucks:  $275,000 to $350,000
• Licenses and Permits:  $500 to $1,000
• Dues and Subscriptions:  $350 to $1,000
• Professional Fees (lawyer, accountant, etc.):  $2,500 to $5,000
• Travel, Lodging, and Meals for Initial Training:  $2,000 to $3,000
• Additional Funds (for First 3 Months):  $30,000 to $50,000
• Total Estimated Smash My Trash Franchise Costs:  $372,050 to $492,200

Section II – Smash My Trash’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,500

• Royalty:  beginning on the Business’s opening date and continuing until the date that is 9 months after the Business’s opening date, 8% of Gross Sales earned, directly or indirectly, from trash compaction services, plus 8% of Net Revenue earned, directly or indirectly, from Ancillary Services.

• Beginning on the date that is 9 months after the Business’s opening date and continuing for the remainder of the Franchise Agreement’s term, the greater of: (a) 8% of Gross Sales earned, directly or indirectly, from trash compaction services, plus 8% of Net Revenue earned, directly or indirectly, from Ancillary Services; and (b) $2,600 multiplied by the number of Trucks that you are required to have in operation (the “Minimum Royalty”).

• Brand Fund Contribution:  1% of Gross Sales

• Advertising Cooperative Contribution:  if established, the amount the cooperative periodically establishes

Section III – Number of Franchised and Company-Owned Smash My Trash Outlets

Franchised

2021

• Outlets at the Start of the Year:  208
• Outlets at the End of the Year:  234
• Net Change:  +26

2022

• Outlets at the Start of the Year:  234
• Outlets at the End of the Year:  258
• Net Change:  +24

2023

• Outlets at the Start of the Year:  258
• Outlets at the End of the Year:  218
• Net Change:  -40

Company-Owned

2021

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

2022

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  11
• Net Change:  +6

2023

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  1
• Net Change:  -10

Section IV – News Updates on the Smash My Trash Franchise

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

• Before May 2023, Smash My Trash franchisees could purchase rights to develop and operate a Smash My Trash Business in more than 1 Territory under a single Franchise Agreement. As of May 2023, Smash My Trash franchisees must sign a separate Franchise Agreement for each Territory.

• The tables below show data only for Smash My Trash Businesses that operate under the old model. As a result, Smash My Trash has indicated the number of Territories in which each Smash My Trash Business had the right to operate as of the end of the applicable reporting period.

• In some instances, franchisees have purchased the rights to operate in several Territories but have not yet expanded to operate in all of those Territories. In these circumstances, Smash My Trash  has reported the number of Territories that the applicable Franchise Agreement covers and in which the franchisee has the right to operate, even if the franchisee does not yet operate in all such Territories.

• For purposes of this Item 19, “Gross Sales” means all revenue that each Smash My Trash Business reported receiving or otherwise deriving directly or indirectly from waste compaction services and ancillary services conducted by the Smash My Trash Business, whether from cash, check, credit and debit card, barter, exchange, trade credit, or other credit transactions, including any implied or imputed Gross Sales from any business interruption insurance.

• However, “Gross Sales” excludes (a) sales taxes, use taxes, and other similar taxes added to the sales price, collected from the customer and paid to the appropriate taxing authority; (b) any bona fide refunds and credits that are actually provided to customers; and (c) the face value of coupons or discounts that customers redeem.

• If the owner(s) of the Smash My Trash Business also own a “Heavyweight Waste” business, “Gross Sales” also excludes any revenue that the Smash My Trash Business reported receiving from the provision of hauling services.

• Smash My Trash  franchisees reported the below financial data to Smash My Trash. The source of such data was Smash My Trash’s franchisees’ POS system.

• As of December 31, 2023, Smash My Trash had affiliate-owned Smash My Trash Businesses open and operating in 23 Territories and franchised Smash My Trash Businesses open and operating in 496 Territories. All of the affiliate-owned Smash My Trash Businesses were excluded from the historical Gross Sales below.

• Of the franchised Smash My Trash Businesses: (a) 3 (covering, in the aggregate, 17 Territories) were not open for a full year as of December 31, 2023 and were excluded from the historical Gross Sales below; (b) 11 (covering, in the aggregate, 27 Territories) closed between January 1, 2023 and December 31, 2023 and were excluded from the historical Gross Sales below; and (c) 13 (covering, in the aggregate, 29 Territories) were relinquished and returned to Smash My Trash (at no cost to it) between January 1, 2023 and December 31, 2023 and were excluded from the historical Gross Sales below.

• The table below includes the Gross Sales for the 116 franchised Smash My Trash Businesses (covering, in the aggregate, 479 Territories) that were in operation during all of the 2023 calendar year (the “Covered Businesses”).

• The Covered Businesses include 13 franchised Smash My Trash Businesses (covering, in the aggregate, 39 Territories) that were transferred to third parties between January 1, 2023 and December 31, 2023.

• The table below describes the historical Gross Sales of the Covered Businesses between January 1, 2023 and December 31, 2023 (the “Covered Period”).

• Median Gross Sales:  $507,471
• Average Gross Sales:  $696,809
• Number of Covered Businesses that Exceeded the Average Gross Sales:  41
• Percentage of Covered Businesses that Exceeded the Average Gross Sales:  35.3%
• Maximum Gross Sales:  $5,403,339
• Minimum Gross Sales:  $29,365

• Median Number of Territories:  3
• Average Number of Territories:  4.1
• Number of Covered Businesses that Exceeded the Average Number of Territories:  42
• Percentage of Covered Businesses that Exceeded the Average Number of Territories:  36.2%
• Maximum Number of Territories:  18
• Minimum Number of Territories:  1

• Median Number of Trucks:  2
• Average Number of Trucks:  2.5
• Number of Covered Businesses that Exceeded the Average Number of Trucks:  46
• Percentage of Covered Businesses that Exceeded the Average Number of Trucks:  39.7%
• Maximum Number of Trucks:  12
• Minimum Number of Trucks:  1

• The number of Territories represents the number of Territories covered by each Covered Business as of December 31, 2023.

• The number of Trucks represents the number of Trucks in the possession of each Covered Business as of December 31, 2023.

• Some Smash My Trash Businesses have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Smash My Trash Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️