Can I Scale a College Hunks Franchise?

College Hunks franchises are designed to scale up quickly

Own a College Hunks Junk Removal FranchiseThere’s a simple reason that College Hunks Hauling Junk became a media darling, and it goes beyond the catchy name for the business. Omar Soliman discovered massive unmet demand for junk-hauling services when he first started the business in Washington, D.C., as a way to make money in the summer of 2003 with help from his best friend, Nick Friedman. They decided to pursue the business in earnest in 2005. Within two years, they were generating seven-figure revenue.

When they started, they were only offering junk hauling. They had one diesel truck and an 800 number that directed calls to their cell phones. They were doing it all by themselves, with nobody to help and few systems to rely on. Nick likes to tell this story: “We had a 1-800 number on the truck that people could call to book a job or complain about how the truck was being driven. People would call the number, and we’d apologize for our drivers’ bad driving while we were driving the truck. I probably ‘fired’ myself three or four times for my driving.”

moving franchise opportunities are available nationwideHe and Omar quickly learned that they couldn’t do everything themselves if they wanted to grow the business. They re-read The E-Myth, which stresses the importance of creating systems to help duplicate success within a business and guide other people to help them work productively and help the business achieve scale.

Franchisees today benefit from the systems that Omar and Nick created, which has powered consistent growth. The original College Hunks Hauling Junk operation in Washington, D.C., is still in growth mode, and its success is being duplicated by operations nationwide.

Among the many systems you receive as a College Hunks franchisee is a Truckonomics guide that helps you gauge the numbers of your junk removal and moving franchise opportunities. It helps you determine when it’s the right time to add another truck to your fleet, for example.

junk removal franchise opportunities are available nationwidePatrick Lombardi bought the Nashville franchise of College Hunks Hauling Junks in November 2012 with help from cousin and co-owner Stephen Bienko, who also owns locations in New Jersey and Florida. Patrick notes that the Nashville business has been able to ramp up quickly, from just two trucks when they first bought the franchise to eight trucks in spring 2014. Each truck represents revenue growth for the Nashville franchise.

Here’s a look at the revenue potential for College Hunks Hauling Junk vehicles:

Monthly Sales per Truck - Junk  
Net Operating Profit Per Truck**$14,950
Jobs Per Day4Assuming truck performs 4 jobs per day
Average Revenue Per Job$356Not including recycling income
Work Days Per Month266 days per week (Mon-Sat)
Monthly Gross Sales$37,024
Monthly Cost per Truck-Payroll Related (6 days per week operating 8 hours per day)*
Driver Lead$3,380$13.00 per hour at 3,120 hours per year (6*10*52) (asuumes bonus incl.)
Wingman$3,120$12.00 per hour at 3,120 hour per year (6*10*52)
FICA/FUTA$69210.65% (7.65% + 3%) of personnel costs (driver + navigator)
Workers Comp$97515% of personnel costs (driver + navigator)
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel * Other Variable Truck Costs$1,8515% of monthly Gross Junk Sales (Tracking, Fuel, Parking, Tolls)
Disposal/Transfer Fees$2,5927% of monthly Gross Junk Sales
Vehicle Insurance$400Per truck - decreases as additional trucks added
Truck Payment$1,000Assuming truck is financed/leased
Local Advertising$2,9628% of Sales
Truck Maintenance$300Oil changes, tires, tarp replacement, etc.
Royalty$2,5927% of monthly Gross Sales
First Contact Sales & Loyalty Center Fund$2,210Assuming $945 ($799 Junk Only) flat fee plus call center bookings needed for 4 jobs per day ($19 per booking)
National Brand Development Fee$7402% of monthly Gross Sales
Total Monthly Costs**$22,815
Plus Recycling Income$740.48Approximately 2% of monthly Gross Sales

* Your payroll costs will vary based on the number of jobs performed and whether your employees work full or part-time. Your employees will likely be part-time for the initial period of operations.

** The above income and expense figures relate to income from junk removal truck operations, directly associated truck costs, along with royalties, brand development fees, and first contact sales & loyalty center fees. A typical franchisee can expect to have additional overhead expenses, including, but not limited to, rent, liability insurance, and utilities. 

Monthly Sales per Truck - Move  
Net Operating Profit Per Truck**$9,360
Jobs Per Day1.5Assuming truck performs 1.5 jobs per day
Average Revenue Per Job$725Not including up-sells (such as boxes sales)
Work Days Per Month266 days per week (Mon-Sat)
Monthly Gross Sales$28,275
Monthly Cost per Truck-Payroll Related (6 days per week operating 10 hours per day)*
Driver Lead$3,900$15.00 per hour at 3,120 hours per year (6*10*52) (assumes bonus incl.)
Wingman$3,380$13.00 per hour at 3,120 hour per year (6*10*52) (assumes bonus incl.)
FICA/FUTA$77510.65% (7.65% + 3%) of personnel costs (driver + navigator)
Workers Comp$1,16516% of personnel costs (driver + navigator)
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel & Other Variable Truck Costs$1,4145% of monthly Gross Sales
Supplies/Damages$5662% of monthly Gross Sales
Vehicle Insurance$400Per truck - decreases as additional trucks added
Truck Payment$1,200Assuming truck is financed/leased
Local Advertising$2,2628% of Sales
Truck Maintenance$400Oil changes, tires, tarp replacement, etc.
Royalty$1,9797% of monthly Gross Sales
First Contact Sales & Loyalty Center Fee$1,474Assuming $945 flat fee plus call center bookings need for 4 jobs per day ($19 per booking)
National Brand Development Fee$5662% of monthly Gross Sales
Total Monthly Costs**$19,480
Plus Box and Other Sales Income$566Approximately 2% of monthly Gross Sales

* Your payroll costs will vary based on the number of jobs performed and whether your employees work full or part-time. Your employees will likely be part-time for the initial period of operations.

** The above income and expense figures relate to income from junk removal truck operations, directly associated truck costs, along with royalties, brand development fees, and first contact sales & loyalty center fees. A typical franchisee can expect to have additional overhead expenses, including, but not limited to, rent, liability insurance, and utilities. 

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