What Does a College HUNKS® Moving Franchise Cost?
Owning Our Franchise Costs Less Than You May Think
College HUNKS Hauling Junk & Moving® is a low-cost franchise with tremendous growth potential. In fact, average franchise revenue grew 113% from 2013-2017 and jumped by $191,202 last year (2018) as our existing franchise owners matured and we continued to expand our market share in the fragmented junk-hauling and moving industries.The cost to start a College HUNKS® franchise varies depending on whether you intend to offer both junk removal and moving, or just one service.
- The total estimated initial investment to start a College HUNKS® franchise with one truck is $89,800 to $208,700, which includes $28,000 to $80,000 to cover expenses during the first six months of operations. The cost may be higher if you choose to launch the junk-hauling and moving concepts simultaneously, since the truck requirements are different, or if you decide to purchase multiple zones.
- Most junk removal franchise owners finance the startup costs. If you have at least $50,000 in liquid capital (cash, home equity, 401(k) or IRAs, sellable assets like extra vehicles, etc.) and a net worth of $200,000, you can probably start a College HUNKS Hauling Junk & Moving® franchise.
A College HUNKS® Franchise Cost
The chart below outlines the estimated College HUNKS Hauling Junk & Moving® franchise cost:
|Initial Franchise Fee:||$40,000 to $50,000|
|Rent – 3 Months:||$600 to $2,500|
|Lease, Utility and Security Deposits:||$100 to $700|
|Paint and Signage:||$3,100 to $5,500|
|Service Vehicle – Deposit on Lease or Finance:||$0 to $22,000|
|Equipment and Hand Tools:||$2,000 to $6,000|
|Office Equipment and Supplies:||$2,000 to $6,000|
|Business Licenses & Permits:||$500 to $3,000|
|Professional Fees:||$1,000 to $2,500|
|Insurance Deposit:||$500 to $5,000|
|Training Expenses:||$1,500 to $5,000|
|Business Ramp-Up Advertising::||$10,000 to $20,000|
|Additional Funds:||$28,000 to $80,000|
|Total Estimate Initial Investment||$89,300 to $208,200|
Reasons to Be Confident in the Investment
Our systems and support are designed to help our junk removal and moving franchise owners succeed — and we are so confident in the plan for your business that we offer franchise partners the opportunity to opt out of their franchise agreement if the business is not performing to their expectations after 18 months in business. If you own at least one full Zone and fail to reach $180,000 in Gross Sales during your first 18 months of operations, and you have followed the System with no material defaults, you may exit the business and we will refund 50% of your initial franchise fee for your 1st Zone (i.e. $20,000 if you purchased moving or junk removal, or $25,000 if you purchased both services). The Performance Refund is outlined in Item 5 of our Franchise Disclosure Document.
Have specific questions about the investment costs? Call our team at (878) 205-2146 to learn more!
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Funding Calculator by Tenet Financial Group: 401k Financing
Item 5 also outlines a Performance Incentive: If you purchase a brand-new Zone (not a Zone that has previously been owned and developed) and reach $400,000 in Gross Sales during your first 18 months of operations in said Zone, and you have followed the System with no material defaults, we will pay you a marketing incentive of $5,000.
Our Franchise Disclosure Document, which we will share with you as you study the franchise opportunity, includes additional details and notes.
How Do I Finance a College HUNKS Hauling Junk & Moving® Franchise?
There are many ways to fund a franchise, and College HUNKS Hauling Junk & Moving® franchise owners have tapped a variety of sources to get their businesses started. Generally, if you have $50,000 in liquid assets and a net worth of $200,000, there’s a good chance you will be able to finance a College HUNKS Hauling Junk & Moving® franchise.
Keep in mind: Even if you have more than enough cash to get started, it may make sense to conserve some of your cash for the startup phase of your business. In other words, rather than plunk down 100% of your cash to start the business, it’s better to finance a portion of it and reserve some money for working capital.
Another thing to keep in mind: You may have more liquid assets than you realize. In addition to what you have in your checking and savings accounts, you may have an extra car in your driveway or a boat in your garage that can be sold to help get your business started. We’re happy to help you explore your options — just fill out the form to download our free franchise report, and we’ll set up a call.
Here are some of the common ways people finance their businesses:
- Home equity loans—If you have owned your home or other real estate property for several years, you may have a lot of built-up equity that can be easily tapped to start a College HUNKS® franchise. Home equity loans are generally the least expensive way to finance a small business, and the loans can be advantageous at tax time thanks to the ability to deduct interest payments from your tax bill.
- SBA loans—These are one of the most common tools for financing a new business. The U.S. Small Business Administration will ask for extensive documentation about your proposed business, as well as your financial information. The SBA will also ask you to provide some collateral for the loan. College HUNKS Hauling Junk & Moving® offers a big advantage for people who are seeking an SBA loan — we are part of the SBA Franchise Registry. The SBA created the registry in 1998 to streamline the process banks use to determine franchise owners’ eligibility for SBA loans. Inclusion in the registry allows banks to skip several steps in the approval process, which makes the lending process faster.
- Tap retirement funds without penalty—If you have a 401(k) or an IRA, you may not need a loan at all. You can roll your savings over into a self-directed IRA that can then be used to start a business. The process can be tricky, but a skilled financial advisor should be able to help you tap into your retirement funds without incurring any early withdrawal penalties.
Our team is here to guide you through the financing process.
If you’re ready to learn more, reach out to us today. We are excited to hear from you!