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Junk King

Junk King Franchise Systems, Inc.

Company Information

377 Oyster Point Blvd., Suite 19 South San Francisco, CA 94080

[email protected]

Junk King Franchise Systems, Inc., a California corporation, was formed on January 11, 2010. Their principal business address is 389 Oyster Point Blvd. #6, South San Francisco, CA, 94080.

We have combmed our own best practices into a comprehensive process for operatmg a franchise junk removal and recycling business (the "Program") The Program will, upon order remove and haul junk from residential and commercial customers for disposal, re-use, and recycling As part of the Program, you may also offer a mim dumpster removal service to residential and business customers The mini dumpster service includes dropping off a mim- dumpster at the customer's property for a short-term rental period The customer then fills the mim dumpster, and your Junk King trucks return to pick up the mim dumpster and dispose of its contents The "junk" that our ffeinchises remove and haul consists of items not typically removed through normal municipal pick-up We are not, and the Program is not, in the business of regular pick-up of trash along designated residential or commercial routes, or the hauling or disposal of any hazardous materials, including, but not limited to oil or gasoline, asbestos, any material contammg or contaminated with PCBs, liquid waste of any sort, sludge of any sort, septic tank sludge or waste, or solvents, liquids paints, or chemicals The Program is a step-by-step gmde to runmng a Junk King franchise (“Franchised Business”) It includes franchisee traimng, marketing and sales methodologies (including use of the Junk King trademark and brand development), proprietary software (Junk Netware), and access to and support by our Customer Care Center (the "Center") The Center is the hub for our customer services It processes all telephone and e-mail customer contacts and sales, schedules customer appointments, makes after-service contacts to ensure customer satisfaction, and mamtams the Junk King customer database

1 Directors with Prior Bankruptcies

3 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

7/10

Earning Transparency

7/10

Investment Accessibility

6/10

Summary of potential earnings

Average Gross Profit Per Unit

$397,870 / unit

Average Gross Profit During 2020
Franchise Type:

Services-General

$184,276

Industry Low

$397,870

Industry High

Average Revenue Per Unit

$786,305 / unit

Average Revenue During 2020
Franchise Type:

Services-General

$96,614

Industry Low

$5,825,720

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Junk King Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $54,000 Maximum: $78,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $88,000 Maximum: $174,400

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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