If I lease my vehicles, what percentage of my total expenses in connection with the establishment of the 1-800-GOT-JUNK? Franchised Business is represented by purchases from approved suppliers?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
If you lease your vehicle(s), the purchase and lease of items from approved suppliers or that meet our specifications represent approximately 10% to 30% of your total expenses in connection with the establishment of the Franchised Business, and approximately 40% to 50% of your total expenses in connection with the ongoing operation of the Franchised Business. If you purchase your vehicle(s), the purchase and lease of items from approved suppliers or that meet our specifications represent approximately 70% to 90% of your total expenses in connection with the establishment of the Franchised Business, and approximately 50% to 60% of your total expenses in connection with the ongoing operation of the Franchised Business.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, if you choose to lease your vehicles, the purchase or lease of items from approved suppliers or those meeting their specifications will represent approximately 10% to 30% of your total expenses when establishing the franchised business. This contrasts with the 40% to 50% these purchases represent in the ongoing operation of the business.
This means that a smaller portion of your initial investment will be directed towards purchases from approved suppliers compared to your ongoing operational costs. The initial expenses may include items like the initial truck lease, signage, uniforms, and initial marketing materials, some of which must be sourced from 1-800-GOT-JUNK?'s approved suppliers or meet their standards.
It's important to note that these percentages are estimates and can vary. Factors influencing these figures include the specific vehicle leasing terms you secure, the volume of initial marketing materials you purchase, and any other initial setup costs. Prospective franchisees should carefully consider these figures when planning their initial investment and working capital needs, and discuss with 1-800-GOT-JUNK? any anticipated deviations from these estimates based on their specific circumstances.