Your Franchise

Initial Investment

The initial investment for a Junk King franchise ranges from $87,000 to $150,000 on average, depending on the size of the market. The above figures are the approximate values for populations between 500,000 and 1,000,000 people.

Start Up Costs

For a market of 500,000, the approximate start-up expenses are as follows:

$40,000.00 franchise fee
$5,000.00 initial marketing
$2,500.00 warehouse deposit
$500.00 utilities deposit
$1,500.00 organizational cost
$12,500.00 truck deposit
$3,000.00 insurance
$1,000.00 computers
$300.00 furniture
$150.00 uniforms
$300.00 phones
$200.00 supplies
$20,000.00 working capital
$86,950.00 total

Truckenomics

Below are our corporate unit’s sales and income results since launching in 2005:

Year Gross Sales
First year of operation (February 15, 2005 to December 31, 2005) $210,370
Second year of operation (January 1, 2006 to December 31, 2006) $403,687
Third year of operation (January 1, 2007 to December 31, 2007) $565,315
Fourth year of operation (January 1, 2008 to December 31, 2008) $669,552
Fifth year of operation (January 1, 2009 to December 31, 2009) $728,223
Sixth year of operation (January 1, 2010 to December 31, 2010) $847,525
Seventh year of operation (January 1, 2011 to December 31, 2011) $980,082 (1)
Eighth year of operation (January 1, 2012 to December 31, 2012) $1,243,797 (2)
Ninth year of operation (January 1, 2013 to December 31, 2013) $1,464,418 (3)
Tenth year of operation (January 1, 2014 to December 31, 2014) $1,775,055 (4)
(1) The 2011 Net Income was $298,335 (pre-tax).(2) The 2012 Net Income was $332,330 (pre-tax). (3) The 2013 Net Income was $397,150 (pre-tax). (4) The 2014 Net Income was $438,525 (pre-tax).

The gross sales numbers do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales to obtain net income or profit.

Below are what we call Truckeconomics, a review of sales and expenses on a truck by truck basis:

Monthly Sales per Truck
Jobs per day 3.50 Average truck could perform 3-7 jobs
Average Revenue per job $280.00 Not including recycling income
Work days per month 26.00 Six days per week (Mon-Sat)
Monthly Gross Sales $25,480.00
Monthly Cost per Truck-Payroll Related
Six days per week operating 8 hours per day
Driver Lead $2,808.00 $13.50 per hour at 2,496 hours per year
Navigator $2,288.00 $11.00 per hour at 2,496 hour per year
FICA FUTA $389.84 7.65% of personnel costs (driver + navigator)
Workers Comp $815.36 16% of personnel costs (driver + navigator)
*Starting up, your payroll will be substantially less, as you will be on the truck to start and the employee will not be full time. Total salary expenses will be close to $3,000. Assume 25% of all payroll related expenses going forward.
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel $1,274.00 5% of gross monthly sales
Dump/Transfer Fees $2,293.20 9% of gross monthly sales
Royalty $2,0384.40 8% of gross monthly sales
Call Center $1,019.20 4% of gross monthly sales
Total Monthly Costs $12,926.40
Plus Recycling Income $2,038.40 About 8% of your gross sales
Gross Profit per Truck* $14,592.40

Scalability

Junk King is a truly scalable business opportunity. The fixed (monthly) expenses of your Junk King franchise remain largely stable while the franchise grows by adding trucks. The incremental expenses are 1) truck down payment 2) monthly truck payment.

Other fixed expenses will not increase by more than 10% and the incremental cost of adding a truck is typically 10% of the initial investment.