College Hunks Franchise in 2024: Costs, Fee & FDD
Explore the key insights on College Hunks Hauling Junk and Moving, from investment costs and earnings potential to the unique support system and market demand. Discover if this franchise is the right fit for your business goals.
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College Hunks Hauling Junk and Moving was founded in 2003 by two college buddies, Omar Soliman and Nick Friedman, who started the business with a beat-up cargo van and a vision. Since those early days, the company has become a standout in the moving and junk removal industry, known not only for its efficient services but also for its unique, upbeat company culture. The “H.U.N.K.S.” in the name stands for Honest, Uniformed, Nice, Knowledgeable, Service-oriented—a fitting acronym that aligns with the brand’s values. Today, College Hunks is celebrated not just for moving and hauling, but for creating a customer-centered experience that’s professional, friendly, and trustworthy.
At its core, College Hunks offers two main services: junk removal and moving. The company tackles everything from single-item pickups to full-scale property cleanouts, making it a go-to for residential and commercial clients alike. Their moving services cover both local and long-distance moves, providing customers with a reliable and efficient relocation experience. College Hunks also offers donation pickups, packing services, and hourly labor for tasks like furniture rearranging, appealing to a broad range of customers seeking a hassle-free moving and disposal experience. The franchise serves a diverse customer base, including homeowners, businesses, real estate agents, and property managers who need help with large-scale moves or cleanups.
The brand’s rapid growth is a testament to its popularity and operational success. College Hunks has expanded to over 150 locations across the United States and Canada, handling thousands of jobs each day. With a strong focus on community engagement, many franchisees build connections within their local areas, often partnering with charitable organizations for donation pickups. This socially responsible model has helped College Hunks maintain a loyal customer base and attract franchisees who value both profitability and purpose.
New franchisees receive comprehensive training, starting with an intensive, hands-on experience at College Hunks University, which covers everything from operational procedures to customer service best practices. Ongoing support includes marketing assistance, access to a centralized call center, and continuous coaching to ensure franchisees are equipped for success. The brand’s strong support network and community-centered mission make it an appealing option for franchisees looking to enter the junk removal and moving industries with a proven, people-focused brand.
College Hunks Franchise Insights
- Founded in 2006 and franchising since 2007, College Hunks has grown to 206 U.S. locations, with 202 franchised units and 4 corporate units, showcasing its strong expansion and appeal.
- College Hunks is consistently ranked as a top franchise by Entrepreneur Magazine and the Franchise Business Review, highlighting its reputation and strong franchisee satisfaction.
- College Hunks donates or recycles over 70% of the items they collect, aligning with environmentally conscious values that attract customers who care about sustainable junk removal.
College Hunks Franchise Key indicators
Growth YOY (%)
10%
vs industry 4%
Total U.S. Franchised Units
202
3-Year Failure Rate
18%
vs industry 5%
Sales-to-Investment ratio
2.7:1
How much does it cost to open a College Hunks franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a College Hunks franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a College Hunks franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a College Hunks below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $55,000 | $75,000 |
| Rent | $1,600 | $4,500 |
| Lease, Utility, and Security Deposits | $2,000 | $5,000 |
| Paint and Signage for Service Vehicle | $5,500 | $10,000 |
| Down Payment on Service Vehicle | $3,000 | $35,000 |
| Equipment and Hand Tools | $2,000 | $12,000 |
| Office Equipment and Supplies | $2,000 | $7,500 |
| Business Licenses & Permits | $500 | $3,000 |
| Professional Fees | $1,000 | $2,500 |
| Insurance Deposit | $7,500 | $35,000 |
| Training Expense | $2,000 | $5,000 |
| Preopening Business Ramp-Up Advertising | $26,000 | $36,000 |
| Additional Funds (6 months) | $150,000 | $250,000 |
| Total Estimated Initial Investment | $258,100 | $480,500 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a College Hunks franchise, the required capital involves both the initial investment costs and a net worth requirement set by College Hunks. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $258,000 to $481,000. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement College Hunks requires potential franchisees to have at least $65,000 in liquid assets. This amount ensures franchisees have enough immediate capital for operational needs as they start up.
- Net Worth Requirement While a specific net worth figure isn’t provided, based on industry norms, a junk removal franchise of this scale would typically require a net worth between $300,000 and $500,000. This estimate is based on similar franchises in the industry, ensuring financial stability to handle initial expenses and any operational shortfalls during the startup phase.
How much does a College Hunks franchise owner make?
Calculating the salary of a College Hunks franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a College Hunks franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
College Hunks Revenue & Gross Sales
In the last year, College Hunks franchises achieved a median gross sales of $979,503. This financial performance underscores the brand’s robust consumer demand and potential for lucrative returns for franchisees.
Which key factors impact the average revenue performance of College Hunks franchisees?
The performance of U.S. franchisee median gross sales for College Hunks Hauling Junk and Moving over the past year likely reflects several key factors. First, the increasing demand for convenient and eco-friendly junk removal services has positioned College Hunks favorably in a growing market, as more consumers prioritize decluttering and sustainability. Additionally, the U.S. housing market saw heightened activity in recent years, with increased home sales and moves, further driving demand for moving and hauling services. Economic conditions and rising consumer spending have also supported service-based businesses, as people seek assistance for time-consuming tasks. Finally, College Hunks’ strong brand reputation and ongoing investment in marketing and customer experience enhancements likely contributed to higher customer retention and new client acquisitions, boosting overall franchisee sales performance.
College Hunks Franchise Operational Costs
If you were to open a College Hunks Hauling Junk and Moving franchise, the key primary ongoing operational costs to consider would include:
- Labor and Wages As a service-based business, labor is a significant cost, covering salaries for drivers, movers, and other staff required to handle the physical aspects of hauling and moving. This also includes expenses for recruiting, training, and managing staff turnover.
- Vehicle and Maintenance Costs The franchise requires a fleet of trucks, which entails ongoing costs for leasing or financing vehicles, fuel, maintenance, repairs, and regular inspections to ensure they remain operational and compliant with safety standards.
- Insurance Comprehensive insurance is essential for a business that involves moving and handling customer possessions. Coverage typically includes general liability, auto, and workers’ compensation insurance, all of which contribute to regular operational expenses.
- Technology and Systems College Hunks utilizes centralized scheduling, booking systems, and communication platforms that require software subscriptions, updates, and IT support to keep operations running smoothly and maintain a seamless customer experience.
- Waste Disposal Fees Junk removal often requires disposing of items at recycling centers or landfills, which incurs tipping or disposal fees that can vary depending on the location and type of materials being removed.
- Marketing and Local Advertising While national advertising is covered by an ad fund, local marketing efforts are crucial for attracting customers in your specific area. This may include digital ads, community sponsorships, and other promotional activities to build brand recognition locally.
These operational costs are essential to factor in, as they directly impact the profitability and smooth running of the franchise.
College Hunks Franchise Fees
- Continuing Royalty Fee Franchisees pay 7% of gross sales for services provided within their designated territory. This fee is due twice a month, on the 3rd and 18th, via electronic funds transfer.
- Brand Development Fee An additional 2% of gross sales is allocated to the Brand Development Fund, which supports overall brand growth and development initiatives. This fee is paid at the same time as the continuing royalty fee.
- Local Advertising Franchisees with a moving business are required to spend the greater of $1,500 or 8% of gross sales each month on local advertising. Those with a junk hauling business must spend the greater of $1,100 or 8% of gross sales to maintain strong local market visibility.
- Additional Fees There may be other fees applicable, such as for regional advertising cooperatives or any specialized support services as outlined in the franchise agreement.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating a College Hunks franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by College Hunks.
College Hunks Franchise Earnings
Based on the most recent data, a College Hunks Hauling Junk and Moving franchise generated median gross sales of approximately $979,503. For an owner-operator, this resulted in estimated earnings of around $205,696. These figures provide a solid benchmark for potential franchisees, indicating that the business has a significant revenue potential while offering a strong return for hands-on operators.
The earnings potential aligns with the operational model of College Hunks, where hands-on involvement by the owner often enhances service quality and customer experience, contributing to higher profitability. This snapshot of franchise performance highlights both the revenue-generating capabilities of the business and the potential for substantial owner income, making it an appealing option for those looking to actively manage their investment.
How to Open a College Hunks Franchise
To become a College Hunks Hauling Junk and Moving franchisee, here’s an outline of the process from initial inquiry to starting operations:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Introductory Call and Discovery Process After submitting your application, a franchise development representative will schedule an introductory call. During this stage, you’ll learn more about the business model, investment requirements, and support structure. College Hunks may also conduct a “Discovery Day,” where you visit the headquarters, meet key team members, and get a hands-on feel for the company culture.
- Approval and Franchise Agreement Upon approval, you’ll sign the franchise agreement, officially becoming a franchisee. This step involves paying the initial franchise fee and securing financing if needed. Once the agreement is signed, College Hunks will help you move forward with the setup process.
- Training and Site Setup New franchisees undergo an extensive training program at “College Hunks University,” which covers operations, customer service, and local marketing strategies. You’ll also work with a franchise support team to set up your territory, secure any necessary permits, lease or purchase trucks, and hire your initial team.
- Pre-Opening Marketing and Final Preparations Before opening, you’ll conduct local marketing efforts to generate brand awareness in your territory. This includes digital and local advertising campaigns, which College Hunks will assist in setting up.
- Grand Opening and Start of Operations With everything in place, you’ll host a grand opening to kick off your franchise. From there, you’ll begin full operations, with ongoing support from College Hunks to help you establish and grow your business successfully.
Pros & Cons
Pros
Strong Brand and Reputation: College Hunks is a well-recognized brand with a positive reputation in junk removal and moving, which can attract customers more easily compared to lesser-known franchises.
Dual Revenue Streams: With both moving and junk removal services, you have multiple revenue opportunities, which diversifies income sources and can help mitigate seasonal fluctuations.
Community and Environmental Focus: College Hunks emphasizes community involvement and environmental responsibility, including donations and recycling efforts. This appeals to socially conscious customers and builds goodwill in your local area.
Cons
Physically Demanding Business: Junk removal and moving are labor-intensive operations, requiring physically fit staff and effective scheduling to avoid burnout and turnover among employees.
Dependence on Local Market Demand: The success of your franchise can be heavily influenced by the local demand for moving and junk removal services, which may vary by region and require targeted marketing efforts.
Operational Complexity: Managing both junk removal and moving services adds complexity, especially with scheduling, vehicle maintenance, and staff management, which can be challenging for first-time business owners.
