Top Junk Removal Franchises Worth Investing In

Introduction

Patrick Findaro, co-founder at Visa Franchise and Vetted Biz, had the opportunity to speak with Sherrod Hunter and Fred Tomlin Jr., co-founders of Accelerate Waste Solutions. Their company operates in the junk removal sector and includes the well-known “Junk Shot” app. Recently, one of their Visa Franchise clients had a record-breaking launch, showcasing the effectiveness of their franchise model.

How the Founders Met

Beginnings in Corporate America

Sherrod Hunter and Fred Tomlin Jr. first crossed paths while working at a Fortune 500 advertising firm. They were both top performers in door-to-door B2B advertising, building a reputation through their sales skills and ambitious nature.

The Entrepreneurial Inspiration

While working for the advertising firm, Fred noticed that many small business owners, such as landscapers and carpet cleaners, were living comfortably and had a level of autonomy that appealed to him. This realization ignited his desire to pursue entrepreneurship. Sherrod shared similar aspirations, and their mutual interest in breaking away from corporate life became the foundation of their partnership.

The Trash Can That Started It All

One day, Sherrod noticed a trash can placed outside his apartment complex as part of a valet trash service. It immediately sparked an idea. Instead of having to transport his trash to a compactor, the valet service did it for him, and it was both convenient and lucrative for property management. Sherrod shared the concept with Fred, and within a week, they had promotional materials and a website ready. They began their journey by trying to break into the valet trash service industry.

Overcoming Initial Failures

Despite their enthusiasm, the first venture into valet trash service faced challenges. As they went through apartment complexes, they observed discarded furniture and mattresses near dumpsters and decided to address this issue. By starting small with a borrowed truck, they developed relationships and gradually built their business.

Business Growth and Challenges

The First Major Contract

In 2010, Sherrod and Fred secured their first five-year contract with a long-term apartment management group, allowing them to leave their day jobs and fully dedicate themselves to their business. This marked a significant turning point, providing them with the stability they needed to scale.

Diversifying Services and Relationship Building

Recognizing additional opportunities, Fred and Sherrod began offering junk removal services. By building relationships within the apartment association community and understanding the value of solving different problems, they set the foundation for growth.

Junk Shot and Doorstep Details Brands

Introducing the Junk Shot App

Junk Shot is a consumer-friendly app that allows users to take a photo of items they want removed, making the process simple and convenient. The app leverages patented technology, ultimately aiming to provide automated quoting without requiring human involvement.

Doorstep Details Valet Trash Service

“Doorstep Details” is their valet trash brand that provides a contractual service to residential properties, creating a predictable revenue stream. With three- to five-year contracts, this service provides a steady income that complements their junk removal operations.

Decision to Franchise

Expanding Beyond Florida

After expanding operations across Florida and into Texas, Fred and Sherrod realized the value of franchising. While corporate operations allowed for growth, franchising provided the opportunity for local franchisees to build strong relationships and expand efficiently in their respective regions.

Mentorship and Scalability

Fred and Sherrod received guidance from Gary Finley, the former CEO of Restoration One, who played a crucial role in shaping their franchising strategy. He encouraged them to expand beyond Florida, refine their systems, and ensure that their model was ready for franchise growth.

Key Franchising Milestones

First Franchise License

The company awarded its first franchise license in 2021, after thorough testing and validation of their business model. This step laid the groundwork for future expansion through franchising.

Learning Relationship Building

Early on, Fred and Sherrod faced challenges because they focused solely on securing contracts without recognizing the importance of relationship building. They realized that fostering relationships was key to success, especially as they expanded geographically.

Franchise Operations and Support

Services Overview

Valet trash services provide long-term contracts, whereas junk removal services are flexible and offered frequently in apartment complexes. The latter service allows Fred and Sherrod to build ongoing relationships and create recurring revenue.

The Role of Employees

Initially relying on contractors, Fred and Sherrod decided to create their own team of W-2 employees to support their junk removal operations. This allowed for more efficient and rapid expansion across Florida.

Leveraging Technology for a Competitive Edge

Enhanced Transparency with Junk Shot 360 Reports

To build transparency and trust, Accelerate Waste Solutions provides “Junk Shot 360 Reports” for junk removal and “Doorstep Details Reports” for valet trash services. These reports serve as proof of work and are shared with clients, enhancing their reputation for reliability.

Differentiation from Competitors

Compared to other brands like 1-800-GOT-JUNK and College Hunks Hauling Junk, Fred and Sherrod focus heavily on leveraging technology and fostering long-term partnerships. Their dual approach—targeting both consumer and B2B markets—gives them a distinct competitive edge.

Franchise Investment and Costs

Initial Investment Requirements

The investment required to start a Junk Shot franchise in 2023 ranges from $125,000 to $275,000, depending on whether trucks are purchased or leased. Accelerate Waste Solutions has SBA-approved lenders and partnerships with truck companies to help potential franchisees with financing.

Ideal Franchisee Characteristics

Fred and Sherrod are looking for franchisees who are passionate about building relationships. The ideal franchisee should be dedicated to nurturing connections with clients, the franchisor, and their own teams. This commitment is crucial as it is a long-term partnership.

Franchise Training and Growth Initiatives

New Training Facilities

To further support franchisees, Accelerate Waste Solutions invested in a new training academy and headquarters in Tampa, Florida. This multi-million dollar campus will provide comprehensive training, reinforcing their commitment to franchisee success.

Recruitment and Sales Assistance

Recognizing the current challenges in the hiring market, Fred and Sherrod also established a recruitment department to help franchisees hire qualified staff. In addition, they extended their internal sales program to franchisees, providing qualified sales appointments to help drive growth.

The Future and Expansion Plans

Nationwide Expansion

Accelerate Waste Solutions is aggressively expanding across the United States, with franchise disclosure document (FDD) clearance in most states. Their growth strategy involves building strong relationships and leveraging their proven business model to expand over the next three to five years.

Commitment to Franchisee Success

Sherrod and Fred are fully committed to investing in the future of their franchisees. From training facilities to recruitment and marketing, they aim to provide franchisees with the tools and support needed for long-term success.

Conclusion

Sherrod emphasized that franchising is their future, and they are fully committed to growing and supporting their franchise system. Fred reiterated the importance of investing in their training facilities, technology, and overall support system to ensure that franchisees thrive.