What was Flywheel created to do in relation to existing long-term 1-800-GOT-JUNK? franchise partners?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Flywheel Accelerator Inc., a British Columbia, Canada corporation (“Flywheel Canada”), and Flywheel Accelerator USA Inc., a Nevada corporation (“Flywheel USA”), are together referred to in this disclosure document as “Flywheel”. Both Flywheel entities have a principal business address that is the same as ours. Flywheel was created to help facilitate a smooth transition of certain existing long- term franchise partners in their desired exit from the system. Flywheel did this by purchasing and operating the businesses as affiliate-owned franchises.
In April 2024, Flywheel USA entered into a joint venture with franchisee Southwind Waste Services LLC through the entity 604816 LLC, in which both parties transferred their 1-800-GOT-JUNK? franchised businesses to 604816 LLC, with Flywheel USA removing itself from the direct management of franchised businesses and retaining a minority ownership position in 604816 LLC (referred to as “DBA”). In December 2024, 604816 LLC then purchased the only two Flywheel Canada locations, Fraser Valley and Vancouver Island, resulting in all former Flywheel locations now being operated by DBA, with Flywheel owning a minority ownership position.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 5–9)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Flywheel was created to assist existing long-term franchise partners who wanted to exit the 1-800-GOT-JUNK? system. Flywheel facilitated this transition by purchasing and operating these businesses as affiliate-owned franchises. This provided a mechanism for franchisees to sell their businesses to an entity within the 1-800-GOT-JUNK? corporate structure, ensuring a smoother exit process.
In April 2024, Flywheel USA entered a joint venture with Southwind Waste Services LLC, forming 604816 LLC. Both parties transferred their 1-800-GOT-JUNK? franchised businesses to this new entity. Flywheel USA then stepped back from direct management, retaining a minority ownership position in 604816 LLC, referred to as “DBA”. By December 2024, 604816 LLC acquired the two Flywheel Canada locations, Fraser Valley and Vancouver Island. As a result, all former Flywheel locations are now operated by DBA, with Flywheel maintaining a minority ownership stake.
This arrangement indicates a strategic shift in how 1-800-GOT-JUNK? manages franchise transitions and corporate-owned locations. The use of Flywheel as an intermediary allowed for the consolidation of franchise operations under DBA, potentially streamlining management and creating efficiencies. For prospective franchisees, this demonstrates that 1-800-GOT-JUNK? has mechanisms in place to handle the eventual sale or transfer of existing franchise locations, which could be a factor in their long-term investment considerations.