How Much Can I Make?
Average revenues are on a steep upward trajectory
Average College Hunks Hauling Junk revenue is strong and growing. From 2014 to 2015, our average franchisee revenue increased 51%, reaching $730,553. That average includes people who are offering junk hauling only, as well as franchisees who are offering both junk-hauling and moving services. If you look only at the franchisees who offer both services, the average revenue for 2015 shoots up to $824,555.77.
College Hunks, which offers both a junk-hauling concept and a moving company concept, encourages new franchisees to offer both services because they dovetail so well. Junk hauling often immediately precedes or follows a move, so people who need one service often need the other, too. By offering both services, you can be more useful to customers, generate higher levels of repeat business and discover additional work during the regular course of serving customers.
Jim DelVecchio, who owns the College Hunks franchise in Columbus, Ohio, says his sales have more than met his expectations since he started his franchise in 2011. Actually they have been “exceeding them in a pretty big way.”
The charts below outline the average financial performance of our franchisees, and it is taken from the Item 19 section of our Franchise Disclosure Document. A chart is also provided outlining the performance of our two corporate-owned locations — our original business in Washington, D.C., and our business in Tampa. We believe these charts, taken together, provide some insight into our franchisee performance, revenue growth, as well as what is possible within our business model. The franchisee numbers, however, are averages and do not indicate how any individual business will perform.
2015 AVERAGE ANNUAL PERFORMANCE METRICS
FOR JUNK VS. MOVING FRANCHISES
|All Franchised Locations||Junk Removal Only||Junk Removal and Moving (Average)||DC Corporate Location||Tampa Corporate Location (Actual)|
|# in Group||30||8||22||1||1|
|Annual Gross Revenues||$730,553.39||$472,046.86||$824,555.77||$2,634,463.64||$1,434,361.49|
|Annual Junk Revenues||$379,463.09||$442,792.29||$356,434.29||$1,806,338.45||$315,841.10|
|Annual Moving Revenues||$419,869.05||$0.00||$419,869.05||$768,685.59||$961,098.87|
|Annual Other Revenue (labor, scrap, supplies, valuation)||$35,441.37||$19,863.81||$41,105.93||$59,439.61||$30,098.68|
|Average Job Size||$434.87||$360.57||$461.89||$486.15||$512.28|
|Average Job Size _ Junk Removal||$352.55||$359.07||$350.18||$432.45||$319.35|
|Average Job Size _ Moving||$492.49||$0.00||$671.58||$760.06||$706.66|
|Average Number of Completed Jobs per day (assumes 300 operating days in 2015)(calculated by dividing Gross Revenue by Average Job Size, divided by 300)||5.6||4.4||6||18.1||9.3|
|Average Number of Unique Leads received per day (assumes 300 operating days in 2015)||22||20||22||68||43|
|Lead Conversion to Sale%||26%||22%||27%||27%||22%|
|Average Field Conversion %||95%||99%||94%||94%||98%|
|Average Cost per Lead based on Average Marketing Expense||$7.37||$3.91||$8.47||$10.24||$7.14|
|Average Reported Total Cost of Startup (not including trucks or working capital)||$104,000.00||$76,875.00||$113,863.64||$150,000.00||$150,000.00|
|Average Marketing Expense||$47,741.22||$23,014.94||$56,732.59||$209,221.35||$91,074.00|
2015 ACTUAL GROSS REVENUE, GROSS PROFIT,
UNIT FIXED EXPENSES AND EBITDA FOR AFFILIATE LOCATIONS
|2015 Franchises (Average) (1)||2015 Top 25% Franchisees (Average)|
|Net Profit as % of Revenue (before taxes, interest, depreciation and amortization, and ownersÕ compensation)||26%||27%|
|Total Gross Profit||$357,006||$705,071|
|Gross Profit as % of Revenue||49%||50%|
|Marketing Expense (local advertising)||$47,741||$97,393|
|Office Staff Costs||$51,713||$114,459|
|Rent and Utilities Expense||$26,266||$39,734|
|Other Expenses (insurance, etc.)||$39,860||$71,263|
|Total General & Administrative Expenses (marketing expense, office staff costs, rent & utilities expense, and other expenses including insurance, etc.)||$165,581||$322,849|
|EBITDA (earnings before interest, taxes, depreciation and amortization) (does not include truck payments, owner compensation or other discretionary expenses)||$191,426||$382,222|
College Hunks Hauling Junk provides this information and more to potential franchisees because we understand how important it is to create a realistic revenue projection for a new business. We encourage you to talk with individual franchisees for more insights about revenues and ramp-up times. After you get in touch with us by filling out the form below, we will provide you a list of franchisees you can call to learn more.