Can I Scale a College Hunks Franchise?

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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, as demonstrated by the 30% increase in average franchise revenue from 2012 to 2014.

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

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**$13,293
Jobs Per Day3Assuming truck performs 3 jobs per day
Average Revenue Per Job$376Not including recycling income
Work Days Per Month266 days per week (Mon-Sat)
Monthly Gross Sales$29,328
Monthly Cost per Truck-Payroll Related (6 days per week operating 8 hours per day)*
Driver Lead$2,496$12.00 per hour at 2,496 hours per year
Wingman$2,288$11.00 per hour at 2,496 hour per year
FICA/FUTA$3667.65% of personnel costs (driver + navigator)
Workers Comp$71815% of personnel costs (driver + navigator)
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel$1,4665% of monthly Gross Junk Sales
Disposal/Transfer Fees$2,0537% of monthly Gross Junk Sales
Vehicle Insurance$400Per truck - decreases as additional trucks added
Truck Payment$1,000Assuming truck is financed/leased
Local Advertising$1,000Monthly minimum
Truck Maintenance$300Oil changes, tires, tarp replacement, etc.
Royalty$2,0537% of monthly Gross Sales
First Contact Sales & Loyalty Center Fee$1,895Assuming $945 ($799 Junk Only) flat fee plus 50 call center bookings per month ($19 per booking)
National Brand Development Fee$586.562% of monthly Gross Sales
Total Monthly Costs**$16,621
Plus Recycling Income$587Approximately 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 service & 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**$18,968
Jobs Per Day2Assuming truck performs 2 jobs per day
Average Revenue Per Job$719Not including up-sells (such as boxes sales)
Work Days Per Month266 days per week (Mon-Sat)
Monthly Gross Sales$37,388
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
Wingman$3,120$12.00 per hour at 3,120 hour per year
FICA/FUTA$5377.65% of personnel costs (driver + navigator)
Workers Comp$1,12316% of personnel costs (driver + navigator)
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel$1,869.405% of monthly Gross Sales
Supplies/Damages$747.762% of monthly Gross Sales
Vehicle Insurance$400Per truck - decreases as additional trucks added
Truck Payment$1,000Assuming truck is financed/leased
Local Advertising$1,000Monthly minimum
Truck Maintenance$400Oil changes, tires, tarp replacement, etc.
Royalty$2,617.167% of monthly Gross Sales
First Contact Sales & Loyalty Center Fee$1,705Assuming $945 flat fee plus 40 call center bookings per month ($19 per booking)
National Brand Development Fee$747.762% of monthly Gross Sales
Total Monthly Costs**$19,167.31
Plus Box and Other Sales Income$747.76Approximately 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 moving truck operations and directly associated truck costs, along with royalties, brand development fees, and service & 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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