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.”

College hunks franchise ownerHe 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 42.6% increase in average franchise revenue from 2011 to 2013.

Among the many systems you receive as a College Hunks franchisee is a Truckonomics guide that helps you gauge the numbers that drive your business forward, and that also helps you determine when it’s the right time to add another truck to your fleet.

Moving franchise ownerPatrick 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:

TRUCKONOMICS - JUNK REMOVAL
 
 
Net Operating Profit Per Truck**$8,849
The following table represents the monthly income and costs per truck for a Franchised Business that has one junk removal truck, assuming the truck performs 3 jobs per day (operating 8 hours per day), for 6 days each week:
Monthly Sales per Truck
Jobs Per Day3Assuming truck performs 3 jobs per day
Average Revenue Per Job$300Not including recycling income
Work Days Per Month266 days per week (Mon-Sat)
Monthly Gross Sales$23,400
Monthly Cost per Truck-Payroll Related (6 days per week operating 8 hours per day)*
Driver Lead$2,288$11.00 per hour at 2,496 hours per year
Wingman$2,080$10.00 per hour at 2,496 hour per year
FICA/FUTA$3347.65% of personnel costs (driver + navigator)
Workers Comp$69916% of personnel costs (driver + navigator)
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel$1,1705% of monthly Gross Sales
Disposal/Transfer Fees$2,1069% of monthly Gross Sales
Vehicle Insurance$250Per truck - decreases as additional trucks added
Truck Payment$1,000Assuming truck is financed
Local Advertising$1,500Monthly minimum
Truck Maintenance$200Oil changes, tires, tarp replacement, etc.
Royalty$1,6387% of monthly Gross Sales
Service & Loyalty Center Fee$1,520Assuming $857 flat fee plus 39 call center bookings per month ($17 per booking)
National Brand Development Fee$2341% of monthly Gross Sales
Total Monthly Costs**$15,019
Plus Recycling Income$468Approximately 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.

TRUCKONOMICS - MOVING
 
 
Net Operating Profit Per Truck**$8,444
The following table represents the monthly income and costs per truck for a Franchised Business that has one moving truck, assuming the truck performs 2 jobs per day (operating 10 hours per day), for 6 days each week:
Monthly Sales per Truck
Jobs Per Day2Assuming truck performs 2 move jobs (4-5 hours each) per day
Average Revenue Per Job$450Not including up-sells (such as boxes and valuation coverage)
Work Days Per Month266 days per week (Mon-Sat)
Monthly Gross Sales$23,400
Monthly Cost per Truck-Payroll Related (6 days per week operating 10 hours per day)*
Driver Lead$3,120$12.00 per hour at 3,120 hours per year
Wingman$2,860$11.00 per hour at 3,120 hour per year
FICA/FUTA$4577.65% of personnel costs (driver + navigator)
Workers Comp$95716% of personnel costs (driver + navigator)
Monthly Costs- Fuel per Truck and Other Variable Costs
Fuel$1,1705% of monthly Gross Sales
Supplies/Damages$4682% of monthly Gross Sales
Vehicle Insurance$250Per truck- decreases as additional trucks added
Truck Payment$1,000Assuming truck is financed
Local Advertising$1,500Monthly minimum
Truck Maintenance$250Oil changes, tires, etc.
Royalty$1,6387% of monthly Gross Sales
Service & Loyalty Center Fee$1,520Assuming $857 flat fee plus 39 call center bookings per month ($17 per booking)
National Brand Development Fee$2341% of monthly Gross Sales
Total Monthly Costs**$15,424
Plus Box and Valuation Up-sell Income$468Approximately 2% of 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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