What Does a Moving Franchise Cost?
Owning a College Hunks Hauling Junk franchise costs less than you think
College Hunks Hauling Junk is a low-cost franchise with tremendous growth potential. In fact, average franchisee revenue grew 42.6% from 2011 to 2013 as our existing franchisees matured and we continued to expand our market share in the fragmented junk-hauling and moving industries. The cost to start a College Hunks Hauling Junk franchise varies depending on whether you intend to offer both junk removal and moving, or just one service.
The total estimated initial investment to start a College Hunks Hauling Junk franchise with one truck is $95,000 to $207,950, which includes $28,000 to $80,000 to cover expenses during the first six months of operations. The cost may be higher if you choose to launch the junk-hauling and moving concepts simultaneously, since the truck requirements are different, and if you decide to purchase multiple zones. Most franchisees finance the startup costs. If you have at least $30,000 in liquid capital (cash, home equity, 401(k) or IRAs, sellable assets like extra vehicles, etc.) and a net worth of $100,000, you can probably start a College Hunks Hauling Junk franchise.
Reason to be confident in the investment
Our systems and support are designed to help franchisees succeed — and we are so confident in the plan for your business that we offer franchisees the opportunity to opt out of their franchise agreement if the business is not performing to their expectations after 18 months in business. If you own at least one full Zone and fail to reach $150,000 in Gross Sales during your first 18 months of operations, and you have followed the System with no material defaults, you may exit the business and we will refund 50% of your initial franchise fee for your 1st Zone (i.e. $20,000 if you purchased moving or junk removal, or $25,000 if you purchased both services). The Performance Refund is outlined in Item 5 of our Franchise Disclosure Document.
Item 5 also outlines a Performance Incentive: If you own at least one full Zone and reach $500,000 in Gross Sales during your first 18 months of operations, and you have followed the System with no material defaults, we will pay you a marketing incentive of $8,000.
College Hunks Hauling Junk franchise startup costs
The chart below outlines the startup costs for a College Hunks Hauling Junk business.
|Type of Expenditure||Amount||Method of Payment||When Due||To Whom Payment Is To Be Made|
|Initial Franchise Fee||$40,000 to $50,000||Lump sum||When you sign the Franchise Agreement||Us|
|Rent - 3 Months||$300 to $2,250||As arranged||As arranged||Landlord|
|Lease, Utility and Security Deposits||$100 to $700||As arranged||As arranged||Landlord, Utility Companies|
|Paint and Signage (Vehicle)||$3,100 to $5,500||As arranged||As incurred||Approved
|Service Vehicle - Deposit on Lease or Finance||$6,000 to $22,000||As arranged||As incurred||Approved
|Equipment and Hand Tools||$2,000 to $6,000||As arranged||As arranged||Approved
|Office Equipment and Supplies||$2,000 to $6,000||As arranged||As incurred||Suppliers|
|Business Licenses & Permits||$500 to $3,000||As arranged||As incurred||Local and other state government agencies|
|Professional Fees||$1,000 to $2,500||As arranged||As arranged||Various service providers and contractors|
|Insurance Deposit||$500 to $5,000||As arranged||As arranged||Insurance providers|
|Training Expenses||$1,500 to $5,000||As arranged||Payment terms arranged with suppliers and your employees||Suppliers and your employees|
|Grand Opening Advertising||$10,000 to $20,000||As arranged||As arranged||Suppliers|
|Additional Funds (6 months)||$28,000 to $80,000||As arranged||As needed||Us, suppliers, employees and other creditors|
|TOTAL ESTIMATED INITIAL INVESTMENT||$95,000 to $207,950|
Our Franchise Disclosure Document, which we will share with you as you study the franchise opportunity, includes additional detail. Starting a junk hauling franchise and a moving franchise is a big decision, and we encourage you to study the numbers below and contact us with any questions. To start a conversation and download a free copy of our franchise report, fill out the form below.