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One Man’s Trash is Another Man’s Treasure: The (Franchise) Business Of Junk
Posted By Joel Libava On March 26, 2014 @ 1:00 pm In Franchise | 17 Comments
The junk removal business has come a long way. The one-man horse and buggy business of old has been replaced by entrepreneurs who have been able to take advantage of things like modern transportation and technology.
Some of these intrepid businesspeople have grown substantial independent junk removal businesses. Some have used the franchise business model, which emphasizes things like tight business systems, branding , and local and national marketing programs to take their businesses to the next level.
Let’s take a look at junk removal, franchise-style.
The franchises below all have one thing in common: They focus on picking-up things that are no longer needed or wanted. Some of the things that are commonly picked up include:
As you can see, there are a wide variety of things that can be picked up, and in some cases, even recycled. Below are the top franchises in junk removal.
Founder Omar Soliman won $10,000 in a Miami, Florida business plan contest , and after graduating from college, moved to Washington D. C. to turn the business into a full-scale operation. He (along with his business partner, Nick Friedman) did so well, they decided to turn their business into a franchise operation. They moved back to Florida, and in 2008, began franchising. Currently, they have 120+ franchises operating in the U.S.
As for the name, College Hunks Hauling Junk  (pictured above), the partners wanted something catchy, and since they were still in college at the time…it worked.
Junk removal information from their website:
“We remove all non-hazardous items from anywhere on your property and always recycle, donate and dispose of them in the most environmentally friendly  manner available to us.”
Total investment for a College Hunks Hauling Junk franchise ranges from $101,400 – $207,950.
Brian Scudamore started his junk removal business in college, too. But, Scudamore dropped out of school a year before he was supposed to graduate, so he could devote his waking hours to growing his young junk removal business.
Scudamore is the guy known for bringing professionalism to a deeply fragmented industry. At the time, most of the junk haulers were guys with rusty, old pickup trucks who were running their businesses from inside their rusty, old pickup trucks. They weren’t very organized, and no-shows were commonplace.
The 1-800-Got- Junk  model brought with it shiny, new trucks, and employees in clean uniforms. They’ve also strived to make the customer experience smooth. From their website:
“Drivers reconfirm each appointment with clients 15-30 minutes before the scheduled arrival time. Clients are booked into 1-2 hour time blocks so they are not kept waiting for a truck to arrive and a standardized price list is presented before starting any work.”
The total upfront investment  for a 1-800-Got-Junk franchise ranges from $111,800 – $143,600.
By 2010, JunkLuggers  had expanded into America’s most populous city with 35 employees and 10 trucks. They were hauling 40 tons a day during the busy season – Spring and Summer. And, that was before they became a franchise.
CEO Josh Cohen (pictured above) focuses on the recycling aspect of junk hauling. He’s aligned his franchise business (launched as a franchise in 2013) with several well-known non-profits  that accept donations that can be put to good use. By 2020, JunkLuggers goal is to donate and recycle 100% of all the items they remove from residential and commercial jobs.
Another interesting thing I found on the JunkLuggers website was something that’s often talked about on realty shows, but stops there. It’s called hoarding, and JunkLuggers has a solution for it that comes across in a very human way. From their website:
“Every month, we help clean out multiple homes that could be classified as hoarding situations. Through these experiences we have learned how to safely and sensitively use our expertise to help individuals and families step into a cleaner, more stress-free living situation.“
The total investment for a JunkLuggers franchise ranges from $79,200 – $113,000.
While it’s important for today’s junk-hauling franchises to have tight business systems, superior marketing, and excellent customer service, there are other ways for a franchisor to stand out.
“Our goal is to support the men and women who have served honorably or are currently on Active Duty or Reserve as well as military family members in our armed forces with an opportunity to own their own J Dog Junk Removal franchise business. Our business model is offered exclusively to Veterans, Active Duty, Reserves and their family members only and will provide a service needed throughout the U.S.“
There is certainly no shortage of returning military veterans these days. Thousands of our men and women are returning to the U.S. after serving (in most cases) multiple tours of duty. I’ve never seen a franchise being offered exclusively to veterans before. It’s a courageous move and I’ll be watching to see how their business model plays out.
My only concern has to do with money. Most of our returning veterans aren’t cash-rich. They’ll need to find lenders that will work closely with them to help them secure funding .
J Dog Junk Removal sold their first two franchises in 2013, and they’re actively seeking military veterans interested in franchise ownership. Total upfront investment ranges from $42.6K – $70.5K
Junk King has big trucks. According to the information on their website, their trucks are 20% bigger than their nearest competitors, and that means more jobs per day….more revenue potential.
The Junk King franchise  offers large territories, “king-sized” as they call them, and they’re 25 – 400% larger than their closest competitors.
Company founders (and childhood friends) Mike Andreacchi and Brian Reardon believe in recycling and their franchisees currently recycle over 60% of the junk they haul. Their corporate office even contains furniture and technology salvaged from other businesses.
Interesting fact: At one time, Andreacchi worked for 1-800-Got-Junk.
Their company line is that they offer a premier white collar business system in what is typically a large, fragmented blue collar industry. There are currently 50 franchise units up and running in the U.S. and Canada.
Startup costs range from $83,500 – $150,000.
The junk hauling business is starting to become more well-known, and I see it as a growing business for many years to come.
Article printed from Small Business Trends: http://smallbiztrends.com
URL to article: http://smallbiztrends.com/2014/03/top-junk-removal-franchises.html
URLs in this post:
 branding: http://smallbiztrends.com/2010/07/buying-franchise-well-known-brand-success.html
 contest: http://www.bus.miami.edu/news-and-media/recent-news/entrepreneurship-comp.html
 College Hunks Hauling Junk: http://www.collegehunkshaulingjunk.com/
 friendly: http://lerablog.org/technology/green-tech/the-challenge-of-going-green-in-the-junk-removal-industry/
 1-800-Got- Junk: http://www.1800gotjunk.com/us_en
 investment: http://www.1800gotjunk.com/us_en/franchise/franchise_investment.aspx
 JunkLuggers: http://www.junkluggers.com/
 non-profits: http://www.junkluggers.com/charities-we-work-with/
 this out: http://jdogjunkremoval.com/own-a-franchise
 J Dog Junk Removal: http://jdogjunkremoval.com/
 secure funding: http://smallbiztrends.com/2014/02/institutional-lenders-increase-small-business-lending.html
 The Junk King franchise: http://www.junk-king.com/franchising/