TRASH TO TREASURE

Summer job carting away junk leads to $36 million a year.

In 1989, university student Brian Scudamore encountered a tight summer job market in Vancouver, British Columbia.

He bought a used pickup and started “The Rubbish Boys”, a junk removal service with the slogan “We’ll Stash Your Trash in a Flash!” After three increasingly successful summers, Brian knew it was time to take his business to the next level. He invested in more trucks, hired student drivers, and set out to make his company and its phone number a household name throughout the Greater Vancouver region.

Since 1997, the company has enjoyed exponential growth and widespread recognition for its business achievements, growing from a presence in one city to over 48 of the top 50 metros in North America. It has been nominated for both The Business Development Bank’s “Young Entrepreneur of the Year Award” as well as the “Entrepreneur of the Year”, presented by international accounting firm Ernst & Young. The company has also been featured in USA Today, The New York Times, The Wall Street Journal, and the Associated Press.

According to the company, “We are able to take away anything non-hazardous that two people can lift, such as construction materials, renovation debris, yard waste or even an old couch or mattress.”

The items that 1-800-GOT-JUNK can't cart away include paint, chemicals, solvents, oils, asbestos, oil drums (unless empty with top and bottom cut out) and oil tanks.

Items that the company can take away include: wood fencing, firewood, old lumber, construction lumber, woods ends, tiling, garden refuse, branches, hedge clippings, furniture such as couches, mattresses and sofa beds, appliances including freezers, refridgerators, washers and dryers, and all different types of basement junk such as books, old tools, tires and junk boxes.

The company's website has a lot of information on the opportunity. The entity is ranked as one of the best places to work, too. The company's mission statement--Skillful use of scaleable systems and tools to drive results, customer service, accountability and profitability within a Franchise-wide, ask-once, team culture--is keeping the franchisor focused on their success goals without sacrificing quality for customers, franchisees, or for their employees.

"The 1-800-GOT-JUNK? vision is growth through leadership -- Leadership as a brand, as a team, and by our actions and values: Passion, Integrity, Professionalism, Empathy (PIPE)."

The company has accomplished many of its goals including one to be present in North America's 30 largest metropolitan areas. This goal was accomplished by the end of 2003. The company now seeks to have 250 franchise partners with system-wide sales of $100 million by the end of 2006. Sales of $300 million a year by the year 2009 are entirely possible according to the company.

The long-term goal of 1-800-GOT-JUNK? is to be the world's largest junk removal company with a presence in ten countries by the end of 2012.

The franchisor caters to an impressive roster of commercial clients, too. The divisions include Home Building & Remodeling, Property Management, Real Estate and Retail clients. Customers in these categories include: Lowe’s, Pella, Banana Republic, Walgreen’s, Diesel, The Olive Garden, Jamba Juice, Starbucks, Foot Locker, HMV and Restoration Hardware.

The minimum capital required to purchase a 1-800-GOT-JUNK? franchise is $60,000. This includes the purchase of 1 territory (an area of 125, 000 people) and 1 truck. 1-800-GOT-JUNK? actively recruits franchise partners across North America that are strong leaders with sales, marketing and people management experience.

The Investment
Here’s how the investment breaks down: low investment and high potential for growth:

• Franchise Fee per Exclusive Territory (125k population) $16,000
  (effective Sept. 1, 2004)
• Each Additional Exclusive Territory (125k population) $6,000
  (effective Sept. 1, 2004)
• Royalty 8%
• Minimum Capital Requirement $60,000
• 1-800-GOT-JUNK? is an SBA approved franchisor.
  

According to the franchisor, if you do not hit the minimum per truck revenue goal of $100,000 within your first 12 months of business, they will refund 100% of your franchise fee on your first territory, and allow you to give back your franchise.

What makes an ideal franchise partner? According to the company website, “Our brand’s success is based on the quality of the people we invite into the system. Our best Franchise Partners are young, aggressive, hungry to make money, strong leaders, results oriented and excited about long term growth.”

In purchasing a franchise the Corporate office provides complete support including:

• Assigned Business Development Coaches to work with franchise partners on marketing and growth strategies
• A Centralized Call Center to book, sell and assign jobs for all franchises
• Marketing and Media Depart-ments providing exposure, marketing material and strategic alliances with other national organizations.
• An all inclusive IT system called JunkNet that provides job scheduling, accounting software and direct connection to franchise support.

After purchasing a 1-800-GOT-JUNK? franchise, all new franchise partners attend a 1 week intensive training session called ‘Junk University’. This covers everything from starting up and running the business to training and hiring the right staff.

The website is full of testimonials from franchisees. It also contains a list of areas where the company is seeking franchisees. Check it out and take the informational tour on a day in the life of a typical franchisee. (And don’t forget to stop by the Junk Genie at the site and witness his amazing abilities.)

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