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How Much Does It Cost to Open 1800 Junk Franchise?

Do you want to open a junk removal business by buying 1-800 Junk franchise? If YES, here is how much it cost to open a 1800 Junk franchise successfully. 1800 Junk company started operations in 1998. It is a Canadian company and they have their corporate head office at Vancouver, B. C – Canada.

Presently they have an estimated 160 franchise units in operation. 1-800-Got-Junk? provides junk removal services. The Company offers services such as property management, restoration and renovation, office cleanouts, merchandise removal, and dumpster comparison.

Franchise Description

1-800-GOT-JUNK? LLC is the franchisor. The franchisor offers franchises for the operation of retail junk removal businesses under the name “1-800-GOT-JUNK?” The system includes proprietary software, brand development, training, marketing programs and access to the exclusive service of the “Sales Center,” as well as the mark “1-800-GOT-JUNK?” and related marks.

Financial Requirements to Open a 1800 Junk Franchise

Here are the basic costs required by 1-800-GOT-JUNK? LLC if you are interested in owning their franchise and please note that the information given below has been compiled from the FDD of 1-800-GOT-JUNK. Year of FDD: 2019

1-800-Got-Junk? has the franchise fee of up to $128,000, with total initial investment range of $209,800 to $255,680.

  • Initial Investment: $209,800 – $255,680
  • Net-worth Requirement: $30,000 – $50,000
  • Liquid Cash Requirement: $30,000 – $50,000

The Estimated Initial Investment Are;

  • Initial Franchise Fee – $160,000 – $160,000
  • Initial Marketing Fee – $12,000 – $12,000
  • Computer Hardware and Software – $1,500  – $4,000
  • Miscellaneous Opening Costs – $5,000 – $15,000
  • Equipment (Vehicle Lease with dump box); Lease/ purchase deposit $0 – $10,000
  • Real Estate/ Rent – $1,200 – $5,000
  • Local Marketing – 3 Months – $3,600  – $3,600
  • Insurance – $800 – $5,000
  • Training Expenses – $1,500 – $4,000
  • Additional Funds – 6 Months  $56,200 – $71,080

ESTIMATED TOTAL = $241,800 – $289,680

Please note that the estimated initial investment range is for a typical new territory (10 sub-territories).. Here are Other Fees Applicable to the Overall Cost of Opening 1-800-GOT-JUNK? LLC

  • Royalty – 8% of Gross Revenue.

Minimum Royalty – Depending upon the franchisee’s year of operation, the Minimum Royalty will range from $1,050, prorated as necessary to account for operations for a partial calendar year in the first year of operation, to $4,000 per subterritory per calendar year. The amount payable by franchisees is the amount the Minimum Royalty exceeds the amount of Royalties actually paid by them in any year of operations.

  • Sales Center Fee – 7% of Gross Revenue.
  • Customer Relationship Management (CRM) – Fee (Varies)
  • Dispatch License – $65 per user, per month.
  • Standard Licenses – $20 per user, per month.
  • Google Licenses – $5 per user, per month.
  • Marketing Fund – 1% of Gross Revenue.
  • Branding Cooperative – Up to 3% of Gross Revenue in aggregate.
  • Advertising Materials – As arranged by both parties.
  • Additional Training – Payment for additional training or retraining at up to $100 per person per day for up to possibly 10 days.
  • Transfer – $10,000
  • Renewal Fee – $7,500

Audit Expenses – Costs of examination or audit (approximately $1,500 to $5,000 but may be more), plus any deficiency in amounts that should have been paid to the franchisor.

  • Interest on Late Payments – 24% per year or the highest rate allowed by the state where the franchisee is located.
  • Annual Conference – $1,500 to $2,000 plus costs associated with attendance.
  • Management Assistance – $1,000 per day plus out of pocket expenses.
  • Liquidated Damages – $25 – $2,000 depending upon the breach.
  • Indemnity – Depends upon the size of the loss for which the franchisee is required to indemnify the franchisor.
  • Proposed Supplier Evaluation – Varies, depending on proposed supplier and cost of products to be evaluated.

7 Steps on How to Open a 1-800-GOT-JUNK? LLC Franchise

These steps and tips below will help you acquire a 1-800-GOT-JUNK? LLC franchise and successfully manage your business with the help of the franchisor.

1. Assess Your Finances

The very first step you need to take when considering buying a 1-800-GOT-JUNK? LLC franchise is the cost. Investing in any franchise can be expensive. In exchange for a proven business model and recognizable brand name to operate under, you are expected to shell out a hefty upfront investment—like the ones mentioned above.

That is why it’s important you assess your own finances to decide the amount of capital you have to invest, as well as what franchise financing options you have. Just ensure sure to take time to consider your finances, your financial resources, and fully understand that entire investment prior to jumping in to an application.

2. Consider a Loan

If you realize that you don’t have enough money in the bank to out rightly pay for a Hampton Inn Franchise, then you should consider other financing options. While you won’t need to obtain a loan before you officially enter into a franchise agreement, you should make sure you have strong enough financials to qualify for one when the time comes. Also ensure you have a strong credit score, solid personal financials, and more before moving forward.

3. Request the Franchise Questionnaire

The first step in a 1-800-GOT-JUNK? LLC franchise application is the franchise questionnaire. This questionnaire will include questions about your basic information, your proposed location for the business, and how you would operate the business.

The company will also want to know information about your background, your experience in operating a business, why you are interested in owning a 1-800-GOT-JUNK? LLC franchise and any management experience you have.

4. Obtain 1-800-GOT-JUNK? LLC Franchise Disclosure Documents

Once 1-800-GOT-JUNK? LLC is interested in moving forward with you, the next step will be to review and accept the franchise agreement. One of the most important documents within the franchise agreement is the franchise disclosure document (FDD). Note that to be compliant with the law, 1-800-GOT-JUNK?

LLC will send you this document at least 14 days prior to when you are supposed to sign it so you have adequate time to examine the document and to have it reviewed by a lawyer if you choose to. Remember that will the FDD is regulated by federal law, there are also state laws that regulate franchises. Each state has slightly different franchise rules.

5. Consult With a Franchise Attorney

Although it is not a must to hire a lawyer when joining a franchise, it’s highly advisable. Note that when dealing with a legally binding document that will affect your business for the foreseeable future, you are expected to take extra care to make sure there are no hidden clauses or red flags that could cost you down the road.

A lawyer with experience in franchise law, or dealing with hotel franchises specifically, can be well worth the expense so that you don’t enter into an agreement that you don’t fully understand.

6. Review the Franchise Agreement

Even though the franchise disclosure document or FDD will make a large portion of the franchise agreement, it’s not the only document that you will need to consider. The franchise agreement itself includes everything from the concept, the geographic location, the marketing budget, the operating documents that will be provided by 1-800-GOT-JUNK?

LLC, and the amount of supervision and control the franchisor has over you and your franchise. However, you should still have a lawyer review the franchise agreement to make sure that you are entering into a legal and fair franchise relationship.

7. Finalize the Details

After you must have gotten your finances in order, done your research, and gotten all the legal paperwork in hand, then you have to add your signature and finalize the details. You are now on your way to being a 1-800-GOT-JUNK? LLC franchise business owner. Please note that the overall cost of opening 1-800-GOT-JUNK franchise covers the following;

Other Information You Must Know About 1800 Junk Franchise


The franchisor provides an initial training program for franchisees (or, if the franchisee is not an individual, the owner) and one employee, which they both must complete to the franchisor’s satisfaction. The training covers all aspects of the business operating system, consisting of both in-class training and in-field training.

The initial training session generally includes four days of classroom time and one day of field training. All training takes place at 1-800-GOT-JUNK?’s principal offices in Vancouver, British Columbia and in-field training will take place at the offices of a franchisee in the Vancouver area.

Within 180 days of the business launch, the franchisor will do a field visit to revisit training in the field at the franchisee’s operation. At least one refresher training course is required each year. The franchisor reserves the right to offer and/or require additional training courses as it deems necessary.

Territory Granted

Franchisees will receive a protected territory in which to operate the franchised business. Before signing the Franchise Agreement, the franchisor will determine the protected territory by developing geographic areas with base populations of 50,000 to 75,000 based on the most recently published data from the U.S. Census Bureau (or such other source as the franchisor may indicate to the franchisee).

If the franchisee’s territory consists of more than one of these areas, each one will be considered a “subterritory.” Franchisees will not receive an exclusive territory. However, the non-exclusivity extends only to the franchisor’s reserved rights with respect to national accounts.


The benefit you stand to gain includes having access to financial assistance, even though the franchisor generally does not offer financing. However, the franchisor may, in its sole discretion, allow the franchisee to pay the initial franchise fee with respect to some of the sub-territories in equal monthly installments without interest if payments are timely made.

The franchisor does not guarantee any notes, leases or obligations for franchisees. While not obligated to do so, the franchisor may, in its discretion, introduce franchisees to third party financing sources that may, if they meet their qualifications, supply financing options for items required as part of the initial investment.

Term of Agreement and Renewal

The length of the initial franchise term is five years, though the franchisor retains the right, but not the obligation, to extend the term up to 12 months. If requirements are met, franchisees can renew for three additional five-year terms.