What is Flywheel's ownership position in DBA after DBA purchased the Flywheel Canada locations, and how does this relate to 1-800-GOT-JUNK?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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, created to help existing franchise partners transition out of the system, initially purchased and operated businesses as affiliate-owned franchises. In April 2024, Flywheel USA entered a joint venture with Southwind Waste Services LLC, forming 604816 LLC, referred to as "DBA." Both parties transferred their 1-800-GOT-JUNK? franchised businesses to DBA, with Flywheel USA relinquishing direct management but retaining a minority ownership position in DBA.
Subsequently, in December 2024, DBA acquired the two Flywheel Canada locations, Fraser Valley and Vancouver Island. As a result, all former Flywheel locations are now operated by DBA. Flywheel maintains a minority ownership position in DBA after this purchase.
For a prospective 1-800-GOT-JUNK? franchisee, this information illustrates the company's strategy for managing franchise transitions and its willingness to take on affiliate-owned franchises through entities like Flywheel. It also shows how the company uses joint ventures and acquisitions to consolidate operations under different management structures, which may impact the overall franchise system.