redbox+ Dumpsters Franchise Costs $697K (2023 Stats)

redbox+ Dumpsters offers innovative roll-off dumpster solutions, combining waste disposal with portable storage options for added convenience. Since it was founded in 2006 redbox+ Dumpsters has expanded quite fast and today has over 280 franchisees in the United States alone.

Yet with an average investment of $697,000 it isn’t the most affordable waste management franchise. Should you start a redbox+ Dumpsters franchise? Is this a profitable business?

In this article we’re looking into redbox+ Dumpsters and its latest Franchise Disclosure Document to find out how much it (really) costs, and how profitable it really is. Let’s dive in!

Key stats

Franchise fee$59,500
Royalty fee$12-$195 per wk per container
Marketing fee5% + $2 per wk per container
Investment (mid-point)$697,000
Average sales$478,000
Sales to investment ratio0.7x
Minimum net worth$1,000,000
Minimum liquid capital$250,000
Source: Franchise Disclosure Document 2022

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About redbox+ Dumpsters

redbox + Dumpsters is a waste removal franchise headquartered in Ann Arbor, Michigan. It offers dumpster rental services for contractors, fire and water damage contractors, roofers, homeowners, and more.

redbox + Dumpsters was founded by Jeff Matejka in 2007 to help customers manage their waste disposal needs with increased efficiency and convenience. It began franchising in 2014 and expanded in 2018. As of today, the company has 270 locations in the US

In 2021, redbox + Dumpsters was acquired by BELFOR Franchise Group, one of the world’s largest residential and commercial services franchise groups.

Today, the redbox + Dumpsters concept has grown across the country and is synonymous with its innovative roll-off dumpsters and portable toilet rental combination, rendering it a unique and game-changing franchise concept in the $60 billion waste management industry.

redbox+ Dumpsters franchise pros and cons

The pros:

  • Exclusive territory protection: The franchisor grants its franchise owners the right to operate in an exclusive territory. As long as the franchisees are in compliance with their franchise agreement, the franchisor or its affiliates will not establish another franchise in the defined area.
  • Home-based opportunity: The franchise can be operated from a mobile facility or vehicle. Franchisees can get started with a few real estate commitments and ongoing costs.
  • Flexible working hours: The franchisor allows its franchisees to design their working schedules, giving them a great life-work balance and time to work on improving their services.
  • Financing assistance: The franchisor has relationships with third-party sources to help franchisees get funding for startup costs, franchise fees, equipment, and inventory.
  • Pre-opening training and support: redbox + Dumpsters has a comprehensive training program consisting of 16 classroom hours and 10 on-the-job hours. It trains its franchisees on management, customer service, and how to carry out a successful grand opening, among others.
  • Marketing and advertising: The franchisor provides its franchisees with stellar marketing and advertising programs to help them create awareness and income. These are SEO, national media, regional advertising, email marketing, and loyalty program apps.
  • Site selection: The franchisor offers its franchisees site selection assistance to help them identify viable business locations in terms of potential for growth and competitiveness.
  • Simple franchise operations: The franchise requires 1-2 employees to launch and operate, giving low staff requirements and costs.

The cons:

  • Not a passive investment: The franchisor does not allow for absentee ownership. Franchisees must take active roles in the day-to-day operations of their businesses.
  • No global presence: The franchisor does not have locations outside the US currently. 
  • Competition: The franchise faces competition from Discount Dumpster Rental Co. and Miller& Co., just to name a few.

redbox+ Dumpsters franchise costs

You would have to invest an average of $697,000 to open a redbox+ Dumpsters franchise.

The investment covers all the start-up costs you may need to open a redbox+ Dumpsters outlet. You must pay the franchisor an initial franchise fee of $59,500. In addition to this franchise fee, the investment also covers:

  • Formulation costs: rent and utility deposits; business permits and licenses; etc.
  • Equipment: truck, equipment, and initial containers; equipment transportation and assembly; computer equipment and software (GPS tracking system, POS, CRM); office and small equipment; etc.
  • Operating costs: technology fee, insurance deposits & premiums, pre-opening travel expenses, professional fees, additional funds (first 3 months); etc.

Here’s the full breakdown of costs:

Type of ExpenditureAmount
Initial franchise fee$59,500
Formulation costs$250 – $6,000
Equipment$535,878 – $609,114
Initial marketing$10,599
Operating costs$39,950 – $63,100
Total$646,177 – $748,313
Source: Franchise Disclosure Document 2022

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redbox+ Dumpsters franchise fees

The initial franchise fee for a redbox+ Dumpsters franchise is $59,500. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of $12-$195 per wk per container of revenues.

redbox+ Dumpsters franchise revenue

redbox+ Dumpsters franchise outlet makes $479,000 of revenue in 2021. This is an increase as compared to 2020 ($328,000).

Unfortunately, the redbox + Dumpsters franchise doesn’t provide much information about its franchise’s financial performance in its Franchise Disclosure Document 2022.

Instead, we obtained this number by multiplying the total revenue per rental (as provided on the company’s Summary KPIs for 2021, applicable to all reporting franchises @ $471), the average annual number of rentals per container (1.66 per month x 12), and the median container count (51 for 2021). 

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