There are lots of reasons why you shouldn't buy a junk removal franchise. We're explaining five of the biggest ones for you today!
Hey guys! Lee here with Junk Removal Authority. Hope you all had a great fourth of July. I know we did here. I hope you had some great fun and got some work done as well. I had a great time at the beach with my family. I got some last-minute tweaks done for our training session with the client we’ve got a coming in this evening out of Huntington beach. Today, I wanted to talk to you about the thing that made me want to start JRA in the first place. Why you should not buy a junk removal franchise?
Limited National Name Recognition
Reason number one, limited national name recognition. Most junk removal franchise have limited national name recognition. Here’s the thing guys, franchises in any industry get a lot of their value from being nationally recognizable. For example, when a new Chick-Fil-A opens anywhere in America, people in that market are going to eat there because they already know the name. They already loved the food and they love that restaurant. That means instinct conscious customers, and more importantly instant income, but in the junk removal industry only really 1-800-GOT-JUNK? has any sort of name recognition. Guess what guys? They are pretty much sold out. Other junk removal franchises aren’t widely known outside of the markets that they’re already in. It’s not like buying a Chick-Fil-A and getting instant business. Your business name really isn’t going to mean anything to most people. You’re still going to have to spend a lot of money in advertising to bring in those new customers. Yeah, you have established brand, but the brand isn’t really established in your particular area. In a lot of ways, it’d be better just to build a new brand that’s specific for the area you’re currently operating in.
Number two, you’re handcuffed. Those hands are cuffed. You can’t move them, you feel constrained. When you buy a franchise, you’re handcuffed to that company for as long as you operate that franchise. The contracts you sign in with them typically include a non-compete clause that is going to say something about you’re not going to be able to operate or work for another junk removal company for the entire period of that franchise agreement, plus an additional period following that. So again, you got those handcuffs. You can’t move with a franchise. If you want to make any changes or do your own marketing, you have to ask the Franchisor for permission. You’re not allowed to make procedural decisions on your own. You’ll be paying 10% to 15% of your revenue in royalties to those companies forever. Guys, that’s huge. Absolutely huge! Tremendous! You might need a lot of help from them, especially starting out. But as you grow, you’re going to need them less and less. It doesn’t really matter. You’ll still be paying them more and more money as you grow.
Paying to Add Territory
Reason three, you have to pay to add territory. This right here, ticked me off more than anything. Having to pay somebody else in a completely different area just because I want to expand my business into a different area. It’s ridiculous guys. It’s constraining. It’s part of those handcuffs. Don’t fall for it. There’s another way of going about it with a franchise. If you want to grow your service area as a franchise, you have to actually purchase additional territory from the franchisor. It’s crazy! Absolutely crazy guys! Don’t fall for it. That’s right, franchises limit you to the particular territory you got when you first purchased the franchise. If you want to expand, you got to buy more and it is not cheap. This means that if you want more customers, you have to go through the Franchisor to purchase that additional territory.
People Love Local
Number four, people love buying local. If you’re a franchisee, you’re not a local company. Your part of a big corporation and people love buying local, especially when it comes to food and services. Corporations on the other hand, they aren’t exactly popular in this post-recession economy.
Looking Into Better Alternatives
Number five, there’s a much better alternative that will give you all the benefits of a franchise at a significantly lower price and without the sacrifice of control of your business. Until recently, franchises were a great way to get into junk removal. They offer training, effective branding, proven operational systems, call center, support, and the expertise of someone who spent years in their trade. That’s the most important thing.
Partnering with somebody that’s learned everything. Has learned for you and made mistakes for you. You got that with a franchise. With the JRA complete business package, you get all the expertise, training, branding, proven operational systems, and a full website that’s been proven to lead the business and more without any of the long-term commitments, royalties, territory restrictions and other sacrifices required by franchises. You get all this for the same upfront price or less than a franchise. The business is 100% yours. What’s more? You can use our advertising and marketing support services. Our call center, consulting services, and more at your convenience. Use them if and only when you won’t, but you’re never required to. That way, you never pay for services you no longer need. Also, when you’re partnering with a company where you only use their service if you have to as far as us here at JRA. That’s an extreme motivation for us to make sure we do a great job and that we’re constantly improving our products and services because if we don’t do a good job, you cut the cord. You cut our neck, you slice our neck. You kill us and you drop us. You do not have to use us anymore. That means we’re going to be motivated to make sure we’re doing an excellent job for you. That way you keep coming back to us and you keep using our services. So, here’s the deal guys. If you go with a franchise, you’re not getting name recognition. You’re handcuffing yourself to that franchisor. You’ll have to pay more if you want to expand your territory. You’ll lose a great selling point of being a locally owned business and there’s a better alternative out there. In short, there are just a bunch of reasons not to buy to junk removal franchise.