Who would have thought that junk removal could actually make a person rich? Yet it’s happening all around you, every day – college students starting small junk removal services to help pay for tuition becoming millionaires, unemployed single moms striking it rich with a junk hauling business they started with their old pickup truck – the list goes on. It’s clear that the market is good for junk removal businesses. If you’re reading this, you likely already know that. However, you may not know whether or not you should invest in a junk removal franchise.

junk removal business
Though it wasn’t always possible, making money in junk removal is now simple: run your business the right way. That’s where JRA can help.

 

If you are considering getting into the junk removal business and you’re thinking about a franchise, there are a few things you need to be aware of. You need to understand exactly what you are getting yourself into or you may end up working just to make someone else rich through your efforts. Here are some things you may not know about junk removal franchises (or any franchise, for that matter):

The Franchisor Calls the Shots

It may be your investment and it may seem like your business, but in reality, you can only do things the way the franchisor wants. You don’t really call the shots – you simply make decisions based on the policies and procedures that the franchisor outlines for you to follow. You may be the boss in your office, but you answer to a higher entity. And there’s nothing you can do about that.

Franchises Prevent Innovation

At best, franchisors frown upon innovation and force you to go through a lot of red tape when you want to make any changes. At worst, they won’t even listen to your ideas. Even if you have resourceful, innovative, or ingenious ideas for improving the efficiency of your business, you’ll have to ask for permission from the franchisor before executing your plans. Franchisors are extremely reluctant to change their policies or make exceptions, so they typically just deny your request. Even if they give you permission to implement changes, the process will be a lengthy and difficult one.

Franchisors Take a Percentage of Profits

Even though you paid for the franchise, equipment, and employees, and you run your business on a daily basis, nearly every single franchise agreement requires you to pay a percentage of your profits – or worse, of your revenue – back to the franchisor in royalties. Often times, this number is as high as 10-15%! For reference, if you made $1 million in a year, you’d have to pay the franchisor $100,000 – $150,000! That’s huge.

You Can’t Fix Flaws in the Franchise’s Business Model

If something isn’t right about the business model of the franchise you bought into, there’s little you can do to fix that. Franchise systems are big, slow-moving machines and they are notoriously resistant to change – especially change based on suggestions from individual franchisees. Your suggestions will typically fall on deaf ears, and you’ll be forced to continue following flawed policies that you disagree with. Even if the franchisor takes your recommendations, changing a corporate policy can take months or even years.

You May be Sanctioned for “Not Meeting Standards” 

Franchisors expect their franchisees to live up to their standards. You bought into an existing name, and the franchisor has a vested interest in maintaining their brand identity. If the franchisor feels you have not lived up to their expectations, they may impose sanctions on you. What’s worse, the franchisor can revoke your franchise without giving any of your money back. The other problem with this system is that if you end up on the franchisor’s bad side, you may find yourself being constantly scrutinized, audited, and fined for minuscule or nitpicky violations.

A Better Alternative to a Junk Removal Franchise

Fortunately, there is now an alternative that is far superior to purchasing a junk removal franchise. The JRA Complete Business Package offers all the support, training, and assistance offered by a franchise system with none of the ongoing commitment, royalties, or restrictions. With JRA, you own 100% of your business and pay only for the services you need and want to use, without being handcuffed to a franchisor and being forced to submit to their rules.

Get in touch today to learn more about how JRA can help you get YOUR junk removal business started right.