Franchise Deep Dive: redbox+ Franchise Costs, Fees, Profit and Data

Waste removal service company redbox+ Dumpsters provides roll-off dumpster rentals that are able to handle large amounts of demolition debris and trash from commercial, residential and industrial projects. The brand offers a variety of dumpsters and portable toilets based on customer needs. The waste removal industry is estimated to be worth about $59 billion, and dumpster rental services only occupy $506 million in that segment. This franchise aims to meet the waste removal demands created by that booming industry.

The redbox+ Dumpster brand was launched in 2006 by founder Jeff Matejka, now operating under the purview of BELFOR Franchise Group, a home service franchisor.

Over the last five years, the redbox+ Dumpster brand has seen rapid expansion and has more than 280 open locations across the country. The company is currently offering franchise opportunities throughout the U.S. as it continues to grow.

Owners of redbox+ Dumpster benefit from an asset-heavy and labor-light business model. The majority of ownership costs are associated with hard assets, such as trucks and dumpsters, that retain value and can be utilized for several years. The business model is also labor-light because the only true labor requirements that franchisees will need to be concerned with are the costs to hire staff, who will be responsible for delivering, picking up and cleaning out the dumpsters at the end of every job.

Additionally, the business model works fairly simple for franchisees, as owners and operators make money by renting out dumpsters and portable toilets to customers, emptying them, and then repeating the process. The more dumpsters a franchisee has, the more customers they’re able to serve and the more sales they’ll be able to generate.

For the most part, the brand is recession-resistant. According to redbox+, the brand is designed to “ramp up fast and scale quickly.”

Once signed on to open a redbox+ location, franchisees will have immediate access to technical training, marketing support and ongoing professional development from industry leaders.

The franchise does not have a publicly available Item 19. However, in 2021, the average redbox+ Dumpsters franchise owner owned 49 dumpsters and rented the individual dumpsters out at a rate of 2.47 times a month. The brand’s top-performing franchise owners owned 112 dumpsters and rented each dumpster out at a rate of 2.64 times in 2021.

The total investment necessary to open a redbox+ franchise ranges from $646,177 to $748,313, including a $59,500 franchise fee.

• Truck, Equipment and Initial Containers: $516,919 to $557,405
• Transportation: $10,000 to $40,000
• Container Assembly/Setup Fee: $4,000
• Proprietary GPS Tracking System and Point of Sale/ CRM Software Package: $1,209
• Computer Equipment and Software: $3,000 to $5,000
• Rent and Utility Deposits: $0 to $5,000
• Insurance Deposits and Premiums: $10,200 to $17,850
• Pre-Opening Travel Expense: $1,000 to $3,000
• redbox+ Quick Start Marketing Program: $6,400
• Professional Fees: $2,250 to $5,750
• Business Permits and Licenses: $250 to $1,000
• Office and Small Equipment: $750 to $1,500
• Additional Funds—Three Months: $25,000 to $35,000
• Initial Franchise Fee: $59,500
• Liquid Capital Required: $250,000
• Net Worth Required: $500,000