Smash My Trash Franchise Costs $370K (2023 Stats)

Since it started franchising in 2018, Smash my Trash has had an impressive growth: today it has close to 550 businesses scattered across the United States, of which the vast majority are franchises.

This growth is mostly due to its unique approach: Smash My Trash differentiates itself from waste management competitors by offering eco-friendly waste disposal solutions.

Despite its (hefty) investment cost ($370,000), Smash My Trash has grown exponentially, is this also because it’s a profitable business? That’s what we’ll see in this article.

In this article we’re looking into Smash My Trash 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
Royalty fee
Marketing fee
Investment (mid-point)
Average sales
Sales to investment ratio
Minimum net worth
Minimum liquid capital
Source: Franchise Disclosure Document 2022

About Smash My Trash

Smash My Trash is a mobile waste compaction franchise headquartered in Carmel, Indiana. It provides mobile and innovative waste compaction services to manufacturing, construction, trucking, recycling, and other industries.

Founded in 2016 in Texas, the company’s concept is to offer crushing services that reduce commercial waste volume, save businesses money, and cut harmful greenhouse gas emissions.

Smash My Trash began franchising in 2018 and currently has over 500 locations including 501 franchises in the US. 

Through its growth, Smash My Trash continues to position itself in the waste management industry as an eco-friendly franchise and provides a good investment to investors looking for a low-cost franchise opportunity.

Smash My Trash franchise pros and cons

The pros:

  • Third-party financing: The franchisor has relationships with third-party lenders to offer its franchisees funding to cover their startup costs, franchise fees, and equipment.
  • Pre-opening training: Smash My Trash offers its franchisees detailed online and classroom training programs to help them operate their franchises smoothly. Also, it offers them grand openings and field operational support.
  • Marketing and advertising: The franchisor assists its franchises in accessing strong marketing and planning strategies to reach a wide customer base. These are web development, email campaigns, print collateral, social media, local promotional campaigns, etc.
  • Mobile-based opportunity: The franchise can be operated from home or a mobile facility. It offers franchisees minimal real estate requirements and low start-up costs.
  • Exclusive territory protection: Smash My Trash allows its franchisees to operate in a protected territory. Franchisees can build and grow their businesses without internal competition.
  • Simple franchise operations: A Smash My Trash franchise requires a minimum of two staff members to launch and operate. Franchisees can get started fast with low staff requirements and costs.
  • Multi-unit franchise opportunity: The franchisor allows its franchise to be part of a multi-unit franchise that is scalable and has real benefits.
  • Positive environmental contribution: The franchise is an opportunity for franchise owners to reduce their environmental footprint.
  • Flexible working hours: A Smash My Trash franchise is a B2B concept, allowing franchisees to operate on flexible schedules and achieve a great work-life balance.

The Cons:

  • Not a passive investment opportunity: The franchisor does not allow for absentee ownership. Franchisees are required to participate in the decision-making and operations of their businesses.
  • No international locations: Currently, the franchisor does not have locations outside the US.
  • Competition: It faces competition from Crushr., and Penn Waste Inc. among others.

Smash My Trash franchise costs

You would have to invest an average of $370,000 to open a Smash My Trash franchise.

The investment covers all the start-up costs you may need to open a Smash My Trash franchise business. You must pay the franchisor an initial franchise fee of $49,500. In addition to this franchise fee, the investment also covers:

  • Formulation costs: rent, utilities, and leasehold improvements; licenses and permits; etc.
  • Equipment: furniture, fixtures, and equipment; computer systems; smash trucks; etc.
  • Operating costs: insurance, dues and subscriptions, professional fees, travel for initial training, additional funds (first 3 months), etc.

Here’s the full breakdown of costs:

Type of ExpenditureAmount
Initial franchise fee$49,500
Formulation costs$1,000 – $3,500
Equipment$247,900 – $273,500
Initial marketing$2,500 – $7,500
Operating costs$38,950 – $66,500
Total$339,850 – $400,500
Source: Franchise Disclosure Document 2022

Smash My Trash franchise fees

Smash My Trash franchise revenue

A Smash My Trash franchise business makes $364,000 in yearly revenue on average.

This number is the average yearly revenue of franchisees open in 2021 for at least 12 months. Unfortunately, the company does not provide revenue data for 2020, so we couldn’t do a comparison. Instead, we are showing below the 2021 average yearly revenue of a franchisee based on the length of its operations.

Smash My Trash franchise profits

A Smash My Trash franchise business makes $97,000 in profits per year on average (26.5% EBITDA margin).

We obtained this number using the information available in the Franchise Disclosure Document 2022. Fortunately, the Smash My Trash franchise provides information about its franchisee’s EBITDA profit margin for those open for at least 12 months in 2021.

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.

0