Why Would You Buy A Junk Removal Franchise?

Why Would You Buy A Junk Removal Franchise?

Why would you ever consider buying a junk removal franchise?

In 2008 when I started AC Trash Hauling, I was approached by an individual that sold franchises. Obviously he approached me about buying a franchise. I didn’t even look at the information and flatly rejected the opportunity. Nine years later as I revisit the franchise model, I ask myself, “Why would you ever consider buying a junk removal franchise?”
My answer to this question is “I have no good reason to ever consider owning or operating a franchise!!”

Allow me to share my story.
AC Trash Hauling was started with $85 and a pickup truck. My primary goal was to pay my bills during the 2008 economic disaster. I’ll allow you to call it by any name you prefer. I was booted to the curb after a 30 year career in Construction and Construction Management. When the economy went sour, the construction industry was devastated. I am not certain about its current state of health. Furthermore, I am not interested in all of the details associated with its health either. I hope it is healthy and getting healthier as it is a good indication of how our economy is faring. I digressed a tad.

I recently pulled some financial information about a trash/junk hauling franchise. A few key numbers in the overview were:
• Start-up Expenses $86,950.00
Including:
o Franchise Fee $40,000.00
o Initial Marketing $5,000.00
o Truck Deposit $12,500.00
o Working Capital $20,000.00

That my friends is a chunk of change just to get started. Wait there is more!!
The franchisee also has ongoing expenses to be paid back to the Franchisor:
• Royalty 8% of gross sales
• Call Center 4% of gross sales

Back to my story..
I started AC Trash Hauling with $85, a pickup truck that I already owned. I did not have a cell phone at the time, the one I had been using belonged to my former employer.

The $85.00 was earmarked for business cards and magnetic signs for the truck. So much for marketing and working capital. Within hours of starting the business, I had my first job. My net earnings were more than my startup costs. The rest is history.

Business has been good since our humble beginnings in 2008. We hire locally, buy our trucks locally, and bank locally. The money our customers spend stays within the local economy.

Why is this important to me? AC Trash Hauling & More is locally owned and operated. We are not supporting a business in some other state, or a Franchisor in another country. Yes, you read that right, one of the major franchises is headquartered in Canada. The hard earned dollars that our customers spend for our services remain in our service area. We are supporting our local economy.

Back to the question, “Why would you ever consider buying a junk removal franchise?”. My answer is simple, I have no idea why you would spend $86,950.00 dollars to start something that I started with $85 and a pickup truck.

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