Franchise Deep Dive: College HUNKS Hauling Junk & Moving Franchise Costs, Fees, Profit and Data

College HUNKS Hauling Junk & Moving offers two necessary services to consumers: junk hauling and professional moving. The brand offers a low investment cost and very high profit margins, making it a popular choice among investors looking for an opportunity to succeed in this niche service segment. The brand competes against waste removal companies like 1-800-GOT-JUNK? and Bin There Dump That, as well as moving brands like Go Mini’s Portable Storage and Moving and Two Men and a Truck.

Growth and expansion

In a November 2022 press release, College HUNKS Hauling Junk & Moving reported hitting the 200-unit milestone. The brand saw tremendous growth over the last year, growing its footprint by 23% with 37 new locations added in states like California, Colorado, Florida, Illinois, Michigan, Pennsylvania, Texas and Virginia. The company is offering territories in all 50 states.

Looking back at College HUNKS Hauling Junk & Moving’s history, the brand has had an admirable growth rate. Entrepreneur reports the company has expanded 54.7% in the last three years and more than quadrupled over the last decade.

VettedBiz data shows how many units have been added and closed over recent years. College HUNKS Hauling Junk & Moving added 12 franchises in 2019, 15 in 2020 and 23 in 2021. Over that time span, the brand has also added a company-owned unit, bringing the total of corporate operations to three.

The brand was formed in 2003 and began franchising in 2006 and was quickly hauling away thousands of tons of junk. In 2008, the company’s creators went on TV show ‘Shark Tank’ to secure funding but turned down an investor’s offer to own 10% of the brand.

The franchisor offers a comprehensive business model with different service offerings and multiple revenue streams for owners. With its moving services for those relocating and junk hauling help for those who need to discard items, franchisees stay busy and profits continually flow in.

Franchise partners handle the high-level operations of the business while their reliable teams drive the trucks and handle transporting possessions in a move or waste that’s being hauled. According to Franchise Gator, the brand seeks leaders who have a positive attitude, a background in sales or management and a passion for philanthropy, which the company is heavily involved in.

New investors can choose between opening a College HUNKS Hauling Junk franchise first, a College HUNKS Moving franchise, or both concurrently. They also offer the opportunity for competing businesses to convert operations under the College HUNKS name. The 2019 FDD details the difference between the two models:

• Standard franchise: serves a Zone with a population of 300,000 to 400,000 people

• Small market franchise: serves a Zone with a population of 5,000 to 299,999 people

Financial performance

The financial performance representations in College HUNKS Hauling Junk & Moving’s yearly Franchise Disclosure Documents show strong unit-level performance and profit margins that are extremely high - nearing 50%. Vetted Biz broke down data from gross sales and profits from recent years.

The average annual gross sales in 2021 were $1,638,839 (out of 104 reporting). This shows a pattern of consistent growth, up from $1,311,775 in 2020 (out of 90 reporting) and $1,257,610 in 2019 (out of 79 reporting). The number of franchisees who have met or surpassed the average sales numbers also continues to grow, now 31, from 27 in 2019.

These figures also break down the costs involved in running the business and total up the gross profits that are left over. In 2021, the average franchisee made $815,621. Those numbers were $644,626 and $608,756 in 2020 and 2019, respectively. These calculate out to profit margins in the high 40 percentile range – although they do not account for fixed costs.

The estimated initial investment necessary to begin the operation of a College HUNKS Hauling Junk & Moving ranges from $108,700 – $273,200. The brand details the costs involved on its franchise development website:

• Rent – 3 Months: $3,600 – $9,000

• Lease, Utility and Security Deposits: $3,600 – $7,200

• Paint and Signage: $3,100 – $5,500

• Service Vehicle – Deposit on Lease or Finance: $0 – $22,000

• Equipment and Hand Tools: $2,000 – $6,000

• Office Equipment and Supplies: $2,000 – $6,000

• Business Licenses & Permits: $500 – $3,000

• Professional Fees: $1,000 – $2,500

• Insurance Deposit: $1,500 – $7,000

• Training Expenses: $1,500 – $5,000

• Business Ramp-Up Advertising: $10,000 – $20,000

• Additional Funds (6 months): $40,000 – $120,000

Ongoing Costs and Fees include:

• Royalty: 7% of gross sales monthly

• Technology Fee: 1% of gross sales

• Brand Development Fee: 2% of gross sales

• Renewal Fee: $5,000

• Local Marketing: Greater of $1,500 or 8% of gross sales for moving/$1,100 or 8% of gross sales for junk removal

The franchise fee to do business depends on a number of factors, including whether investors want to first start with moving services, junk hauling or both, and what kind of territory size they are looking to operate in. Item 7 of the 2019 FDD details the cost differences.

Both College HUNKS Hauling Junk and College HUNKS Moving has a $40,000 franchise fee for a standard franchise. However, if an owner wants to begin operations with both, the franchise fee is discounted to $50,000 for both agreements.

Small market franchises have a reduced franchise fee because they operate in less-populated regions. The fee depends on the number of residents in the designated territory and is 15% of that number.

Owners are able to purchase additional zones for a fee of $35,000 or a fraction of a zone for $15,000 per every 100,000 population.

Conversion opportunities are also available for a fee of $40,000 minus 10% of gross sales from the business’ previous year of operations. Veterans are offered a $7,500 discount to purchase a College HUNKS Hauling Junk & Moving franchise, so long as they have a 51% vested interest in the business at all times.

• Co-founder and CEO: Omae Soliman

• Co-Founder: Nick Friedman

• President: Roman Cowan

• Vice President of Franchise Development: Kelsie Ackman

• Vice President of National Accounts: Laura Butcaris

• Director of Franchise Development: Dana Hansen

• Franchise Business Consultant: Mike Brienza

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