1-800-JUNK-USA Acquires College Hunks Hauling Junk Franchise
Looks like the College Hunks are graduating to the Penthouse.
Privately held 1-800-JUNK-USA, based in Tampa, FL, has announced that it is acquiring the College Hunks Hauling Junk franchise. Founded back in 2003, College Hunks began offering franchise opportunities in 2007, and is today the largest franchise system of its kind in the U.S., with franchisees in more than 35 domestic markets.
Terms of the deal weren't disclosed, but we're guessing the co-founders of College Hunks, who launched their venture as a side project while attending college in our nation's capital, won't be eating ramen noodles and store-brand cola for much longer. (Actually, given the duo appeared on the millionaire matchmaker about a year and a half ago, it's probably been some years since these two were forced to chow on $0.50 cancer bowls to power their entrepreneurial engines).
Franchise mergers and acquisitions, like all major corporate transactions, are always a tricky affair. After all, the majority of M&A deals end up in failure. One senses, however, that 1-800-JUNK- USA has managed to acquire themselves a fast-growing business with strong brand recognition and substantial future prospects.
Time to tap the keg!
A Break Down of Franchise Royalty Fees
When you first start your franchise you typically pay a franchise fee upfront. This will cover a variety of things that depend on the franchise you're dealing with, but often it will go towards initial training, marketing, and the rights to use the franchises logos, names, systems, and products. But that's not the only fee that franchisees will pay to a franchise. In addition to the initial franchise fees, the vast majority of franchises will charge their franchisees royalties that can come in one form or another. These royalties will often go towards ongoing training, sales of goods directly from franchisor to franchisee, and advertising and marketing efforts. The exact terms for these royalties are set out in your franchise agreement, but they come in a few common forms.
Low Cost Franchising - Options for Affordable Franchising
Fortunately, there are numerous excellent low-cost franchise options available, and those options span nearly every industry an entrepreneur could imagine.
Choosing a Service Franchise or a Product Franchise
Most of the franchises offering Product oriented goods have very stringent rules. Since their brand is associated with a tangible good they must guarantee the desired quality from the consumer’s expectation. Franchisees must purchase the goods from a designated supplier and must keep items in their inventory as suggested by the franchisor. This can be company regulated policies or simply to help the franchisor launch some of their new products.