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Rubbish Works Franchise Costs $106K – $144K (+ 2024 Profits)

Rubbish Works is an eco-friendly junk removal and dumpster rental franchise that has been active since 2009. Based in Boulder, Colorado, the company ensures that at least 50% of the items it handles are recycled or donated. This approach increases its appeal to customers who value sustainability.

The franchise is part of the larger Premium Service Brands family, which provides a strong support network and established brand recognition. This connection helps Rubbish Works maintain consistent business practices and grow its market presence.

The company also offers its franchisees extensive support, including training, marketing strategies, and ongoing operational assistance. This support system is designed to equip franchise owners with the tools they need to operate sustainably in their local communities.

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Initial investment

Type of ExpenditureAmount
Franchise Fee$65,000
Vehicle$1,500 – $5,000
Real Estate and/or Leasehold Improvements$0 – $3,000
Equipment & Supplies$1,250 – $3,500
Insurance$2,000 – $5,000
Signage$3,000 – $4,000
Technology Fee$5,000
Grand Opening$2,500 – $5,000
Training Expenses$2,000 – $4,000
Licenses/Bonds$100 – $1,500
Professional Fees$1,500 – $3,000
Additional Funds (3 months)$22,500 – $40,000
Total Estimated Initial Investment$106,000 – $144,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee for a Rubbish Works Franchised Business is $65,000, payable in one lump sum upon the execution of the Franchise Agreement. This fee is non-refundable.

Royalty Fee

The royalty fee is 6% of Gross Sales, with a minimum of $150 per week. It is payable weekly based on the previous week’s Gross Sales.

Marketing Fund Fee

The marketing fund fee is 2% of Gross Sales, payable weekly based on the previous week’s Gross Sales.

Advertising Cooperative Fee

You may be required to contribute up to $10,000 annually or 2% of Gross Sales, whichever is greater, to an Advertising Cooperative. This fee is due upon demand and is determined by the cooperative’s members.

Technology Fee

The ongoing technology fee is $210 per week, covering services such as website development and software used in operations.

Contact Center Fee

This fee is the greater of 2% of Gross Sales or $220 per week, with a weekly cap of $695. It is also based on the previous week’s Gross Sales and is payable weekly.

Transfer Fees

The transfer fee is up to the greater of $10,000 or the franchisor’s actual out-of-pocket expenses at the time of transfer.

Renewal Fees

The renewal fee is the greater of 25% of the then-current initial franchise fee or $15,000.

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How to apply

1. Research the Rubbish Works Franchise

  • Explore the basic business model of Rubbish Works, focusing on waste removal and disposal services.
  • Understand the target market and geographical areas where the franchise operates effectively.
  • Look into the brand’s reputation and read reviews or testimonials from existing franchisees.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully examine the Franchise Disclosure Document provided by Rubbish Works.
  • Pay close attention to sections detailing initial and ongoing costs, franchisee obligations, and corporate support.
  • Consult with a franchise attorney to understand legal implications and your rights as a franchisee.

3. Assess Your Financial Capability

  • Evaluate your financial resources to ensure you can meet the initial investment requirements, which include franchise fees and startup costs.
  • Consider the working capital needed to run the business until it becomes profitable.
  • Check for financing options, either through Rubbish Works directly or through third-party financial institutions.

4. Attend Discovery Day

  • Participate in a Discovery Day event hosted by Rubbish Works, which allows potential franchisees to meet with the franchisor.
  • Use this time to ask detailed questions about operations, support, and expectations.
  • Get a feel for the company culture and the support system provided to the franchisees.

5. Choose a Suitable Location

  • Select an appropriate location for your franchise based on market research and guidance from Rubbish Works.
  • Consider factors like demographics, competition, and local regulations that impact waste management services.
  • Secure a property that meets all the requirements for size, visibility, and accessibility.

6. Complete Training Programs

  • Undergo the training programs provided by Rubbish Works to understand the operational aspects of the franchise.
  • Training typically covers topics such as service delivery, customer management, safety protocols, and business administration.
  • Ensure that any required certifications, especially those related to waste management and disposal, are obtained.

7. Finalize the Franchise Agreement and Set Up Your Business

  • Finalize negotiations and sign the franchise agreement with Rubbish Works.
  • Follow the steps laid out by the franchisor for setting up your business, including acquiring the necessary equipment and hiring staff.
  • Implement marketing strategies as advised by Rubbish Works to effectively launch your services in the local market.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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