How to Finance a 1-800-GOT-JUNK? Franchise: Trucks and Territory
By Anthony Cornella
A 1-800-GOT-JUNK? franchise loan pays for a business that has no storefront to build out and no kitchen to equip. Instead, the money goes into a territory made up of subterritories, a fleet of trucks with dump bodies, a launch marketing budget and enough working capital to keep crews on the road while the phones get busy. That mix of intangible rights, rolling stock and start-up cash shapes how lenders look at the deal.
This article walks through what the franchisor’s 2025 Franchise Disclosure Document (FDD) says about costs and fees, how the subterritory model affects the size of the loan, how the brand’s SBA Franchise Directory listing works and how buyers typically assemble financing for a new territory, an expansion or the purchase of an existing franchise.
US Professional Funding is not affiliated with, sponsored by or endorsed by 1-800-GOT-JUNK?; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
1-800-GOT-JUNK? Franchise Loan at a Glance
- Initial franchise fee: $8,125 per subterritory, with a minimum purchase of eight subterritories for a minimum fee of $65,000; twelve subterritories cost $97,500, according to the 2025 FDD.
- Estimated initial investment: $183,800 to $294,000 for a franchisee with 8 to 12 subterritories.
- Sales, Marketing and Technology Fee: 8% of Gross Revenue, paid at the same time as the royalty.
- Royalty: calculated on Gross Revenue and subject to a minimum royalty for each subterritory that starts at $1,200 in the first calendar year and rises to $4,000 by the fifth.
- Branding cooperatives: if established, contributions are capped at 5% of Gross Revenue in aggregate.
- Liquid capital: the franchisor’s corporate franchising materials call for a minimum of $70,000 in liquid capital.
- Term: 5 years from the Scheduled Opening Date, with 3 additional 5-year renewal terms.
- Transfer fee: $10,000.
- SBA Franchise Directory: listed as 1-800-GOT-JUNK? (code S0005), with a lien position note explained below.
What Is 1-800-GOT-JUNK?
1-800-GOT-JUNK? says its story started in 1989, when founder Brian Scudamore began hauling junk, and it describes the business today as the world’s largest junk removal company. The franchisor is headquartered in Vancouver, British Columbia, and it has built a network of franchises across North America.
The service is simple to explain: customers book online or by phone, a uniformed crew arrives in a branded truck, quotes a price on site, loads everything and hauls it away for donation, recycling or disposal. Customers include homeowners, property managers, real estate agents, contractors and commercial accounts.
A centralized booking model. Unlike many home service franchises, much of the brand’s customer contact runs through a centralized call center and shared customer relationship management system funded by the Sales, Marketing and Technology Fee. The franchisee focuses on running trucks, crews, scheduling and local relationships.
Why lenders view it the way they do. Lenders see a recognized consumer brand, low real estate needs and hard assets in the form of trucks. They also see a business whose largest assets are intangible: the franchise rights to a territory and the goodwill of an operating business. Collateral coverage is therefore thinner than in a real estate deal, and the strength of the borrower and the projections carry more weight.
How the Subterritory Model Shapes Your Loan
The 2025 FDD sells territory in units called subterritories. The initial franchise fee is $8,125 per subterritory, and a new franchisee must buy at least eight, so the minimum fee is $65,000. A franchisee taking twelve subterritories pays $97,500. The fee is payable in a lump sum when the franchise agreement is signed.
Installments on some subterritories. The FDD states that if you are granted multiple subterritories, the franchisor may, in its sole discretion, allow you to pay the fee for some of them in equal monthly installments for a specified period. It may also decline to let you operate or serve customers in those subterritories until the fees for them are paid in full. For a borrower, that can lower the cash needed at signing but adds a fixed monthly obligation that lenders will count in debt service. Our article comparing franchisor financing with SBA and bank loans explains how to weigh that kind of arrangement.
Minimum royalties by subterritory. Each subterritory carries its own minimum royalty, and the FDD says the minimum must be met in each subterritory regardless of performance in the others. The minimum is $1,200 in the calendar year operations begin (pro-rated for a partial year) and steps up each year to $4,000 in the fifth calendar year. On renewal, the minimum is set at no less than the prior year’s amount plus an increase of at least 10%. More subterritories mean a larger territory to grow into, but also more minimums to cover while the business ramps up.
Activation deadlines. The franchise agreement includes Subterritory Activation Dates. Before borrowing, make sure your truck count, hiring plan and marketing budget can meet those dates, because lenders will ask how the territory will be built out.
1-800-GOT-JUNK? Franchise Costs
Initial franchise fee. $65,000 to $97,500 for 8 to 12 subterritories, as described above.
Trucks and dump bodies. The franchisor describes a minimum of two trucks at startup, with additional trucks added on a schedule agreed with the franchisor for larger territories. The Item 7 table includes a lease or purchase deposit on the vehicles rather than the full purchase price, because most owners lease or finance the trucks.
Initial marketing and local marketing. The FDD includes an initial marketing expense of $25,000 and local marketing for the first three months.
Insurance. Commercial auto, liability and workers’ compensation coverage for crews and trucks is a significant start-up cost.
Real estate. The business needs little real estate at the start. Item 7 budgets only $1,200 to $5,000 for real estate and rent, typically covering a modest yard or parking and storage arrangement.
Additional funds. The FDD estimates additional funds for the first 6 months of $59,000 to $75,000 to cover payroll, fuel, truck payments and other operating costs while revenue builds.
Total investment. According to the 2025 FDD, the estimated initial investment for a franchisee with 8 to 12 subterritories is $183,800 to $294,000. The Item 7 line items are:
- Initial franchise fee: $65,000 to $97,500
- Initial marketing expense: $25,000
- Computer hardware and software: $1,500 to $4,000
- Miscellaneous opening costs: $5,000 to $15,000
- Equipment (vehicle lease with dump body), lease or purchase deposit: $10,000 to $30,000
- Real estate and rent: $1,200 to $5,000
- Local marketing (3 months): $3,600 to $5,000
- Insurance: $10,000 to $30,000
- Training expenses: $3,500 to $7,500
- Additional funds (6 months): $59,000 to $75,000
- Total: $183,800 to $294,000
Because the truck line is a deposit rather than a purchase price, the monthly truck payments that follow are an ongoing cost your projections must carry. Read the notes to the Item 7 table for the assumptions behind each range.
Ongoing Fees and How They Affect Your Loan
Royalty. The royalty is calculated on Gross Revenue, and the minimum royalty schedule described above sets a floor for each subterritory. Confirm the current royalty rate in Item 6 of the FDD and model both the percentage and the minimums.
Sales, Marketing and Technology Fee. The FDD sets this fee at 8% of Gross Revenue, calculated on the same basis and paid at the same time as the royalty. It funds the centralized call center, uniform order processing, customer relationship management software and system-wide marketing.
Branding cooperatives. Where the franchisor authorizes a regional branding cooperative and enough franchisees consent, the FDD caps your total contribution across cooperatives at 5% of Gross Revenue in aggregate. Those amounts may count toward local marketing obligations.
Payment processing and other fees. Item 6 also lists payment processing, reporting and other administrative fees. Include them in your budget even when they look small.
How lenders factor these costs in. Royalty and the 8% Sales, Marketing and Technology Fee both come off the top of Gross Revenue, before fuel, labor, disposal fees, insurance and truck payments. Lenders build projections from revenue down to cash flow available for debt service and then stress-test it, paying close attention to the first year, when minimum royalties, truck payments and payroll start before revenue is fully established.
Franchisor Requirements for New Owners
- Liquid capital: the franchisor’s corporate franchising materials say franchise partners need a minimum of $70,000 in liquid capital, and that financing options are available to help with the rest of the investment.
- Minimum territory: new franchisees must purchase at least eight subterritories.
- Sufficient capital: the franchise agreement requires the franchisee to maintain sufficient capital to operate the business throughout the term and any renewal term.
- Guarantees: owners of the franchisee entity generally sign a personal guarantee of the franchisee’s obligations; review the guarantee exhibit in the FDD.
- Territory availability: the franchisor notes that many territories have already been taken, so availability in your market may be limited.
The approval process. The franchisor describes a staged process: an introductory call and interview, market research and calls with existing franchise partners, preparation of a budget and forecast that includes a break-even point and a three-year cash flow projection, a financing review, a visit to headquarters, and finally a reservation agreement followed by the franchise agreement. That forecast is a natural starting point for your loan package.
Ways to Own a 1-800-GOT-JUNK? Franchise
A new territory. Where open territory exists, a new owner buys at least eight subterritories, leases or finances trucks and launches with the initial marketing program. This is start-up financing, underwritten on projections, equity and experience. Our franchise start-up financing page explains how we approach new units.
Buying an existing franchise. Because many territories are already owned, buying an operating business from a current franchisee is a frequent path into the system. The buyer acquires trucks, crews, customer relationships and the remaining franchise term, subject to the franchisor’s transfer approval and the $10,000 transfer fee. Lenders can underwrite actual revenue history. Our guide to buying a franchise resale covers the approval process, and our service business acquisition financing page explains how purchase loans are structured.
Adding subterritories. Existing owners may be able to acquire additional subterritories, subject to the franchisor’s conditions. That growth is usually financed with a combination of operating cash flow, an expansion loan and truck financing.
Financing Options for a 1-800-GOT-JUNK? Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, SBA 7(a) loans are generally available to eligible borrowers. A 7(a) loan can cover the franchise fee, initial marketing, insurance deposits, training costs and working capital in one loan, which matters for a business whose start-up costs are largely intangible.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. A junk removal business needs little real estate at launch, so 504 financing usually becomes relevant only later, if an established owner buys a yard or building for trucks and operations.
Conventional term loans. Experienced operators, especially those buying an existing franchise with solid revenue history or expanding an operating business, may qualify for a conventional business loan. Terms and collateral requirements vary by lender.
Truck and equipment financing. Trucks with dump bodies are the core operating assets, and they are often leased or financed separately from the main loan. Financing trucks on their own schedule keeps payments aligned with the vehicles’ useful life and lets you add trucks as demand grows. Read more about franchise equipment financing and leasing.
Working capital and lines of credit. Junk removal is often busier in spring and summer and around moving season, and quieter in some winter months depending on the market. A line of credit can cover payroll, fuel and disposal costs through slower periods and fund hiring ahead of the busy season. See our options for service business working capital and lines of credit.
Seller financing on resales. When buying an existing franchise, the seller may carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA program rules may restrict its terms.
SBA Loans for 1-800-GOT-JUNK? Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility, and SBA lenders generally require a brand to be listed before making an SBA-guaranteed loan to one of its franchisees. A listing clears the franchise relationship for SBA review; it does not approve any borrower.
Directory status. 1-800-GOT-JUNK? is listed on the SBA Franchise Directory under code S0005. The listing carries one note: the lender or Certified Development Company must ensure it obtains the correct lien position on all collateral as required by the SBA’s standard operating procedures.
What the note means in practice. In this business, much of the collateral is trucks, and those trucks are often leased or financed by someone other than the SBA lender. The note reminds lenders that they must secure the lien position SBA rules require on the collateral they rely on. Expect your lender to ask which trucks are owned, which are leased and who holds a lien on each, and plan the structure of truck financing and the SBA loan together rather than separately.
Loan size. The SBA 7(a) program maximum is currently $5 million, although program rules can change. The 2025 FDD investment range of $183,800 to $294,000 sits far below that ceiling, so the practical limit on a 1-800-GOT-JUNK? franchise loan is your cash flow, equity injection and collateral.
SBA application tips. Bring the FDD, the franchise agreement or reservation agreement, the franchisor’s budget and forecast work, a personal financial statement, tax returns, a resume showing management or sales experience and a monthly projection that reflects seasonality, truck count and hiring. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a 1-800-GOT-JUNK? Franchise Loan Request
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement. Owners usually provide personal guarantees, consistent with the guarantee the franchisor requires.
Net worth and liquidity. The franchisor’s $70,000 liquid capital minimum is a floor, not a target. Lenders want an equity injection plus reserves after closing, because the first months combine marketing spend, truck payments and payroll before revenue is established.
Management and sales experience. The franchisor’s model relies on owners who hire and lead crews, build relationships with property managers and real estate professionals and keep trucks productive. Experience managing teams, field operations or sales strengthens a request.
Business plan and projections. Strong projections show jobs per truck per day, average job size assumptions, labor cost per crew, fuel, disposal and recycling fees, insurance, truck payments, royalty, the 8% Sales, Marketing and Technology Fee and the minimum royalty for every subterritory. Show how and when each subterritory will be activated.
The FDD and franchise agreement. Lenders pay close attention to the term. A 5-year initial term is shorter than many loan terms, so they will review the 3 additional 5-year renewal terms and the conditions for renewal, which include signing the then-current franchise agreement. They will also review transfer terms, guarantees and Item 19, which includes historical Gross Revenue information compiled from franchisee data. Our article on franchise valuation explains how lenders weigh remaining term and performance history.
Facility and vehicles. Lenders review truck leases or loans, insurance coverage and any lease for a yard or storage space.
Historical financials for resales. For an existing franchise, expect to provide several years of profit and loss statements, revenue reports from the franchisor’s system and tax returns, along with a list of trucks and their condition.
Trucks, Insurance and Operating Costs
Trucks are the engine of this business. The FDD describes trucks fitted with an approved dump body, used solely for the franchised business, and the Item 7 deposit range reflects whether trucks are leased or purchased. As volume grows, owners add trucks on a schedule agreed with the franchisor.
Financing the fleet. Separate truck financing keeps vehicles off the main business loan, but each truck adds a fixed monthly payment. Lenders like to see a plan that adds trucks only when demand supports them and that sets aside reserves for maintenance, tires and downtime.
Insurance. The FDD estimates $10,000 to $30,000 for initial insurance. Commercial auto and workers’ compensation premiums can rise with each added truck and crew member, so budget for insurance growth alongside fleet growth.
Disposal and recycling. Dump and recycling fees are a direct cost of every job. Projections that track these fees by job type are more credible than a single percentage.
Multi-Unit Growth and Territory Expansion
In this system, growth usually means more subterritories, more trucks and more crews rather than separate storefronts. An owner may add subterritories, buy a neighboring franchise from a retiring owner or both.
Financing expansion. Once a business has operating history, lenders can underwrite its actual cash flow and fund additional trucks, territory and working capital. Some owners consolidate earlier start-up debt into a single facility as they grow. Our service business expansion financing page covers growth capital.
Approval conditions. The franchisor may set conditions before approving additional subterritories, so confirm them before committing to a loan.
Real-World Scenarios
A first-time owner launching eight subterritories. A former operations manager buys the minimum eight subterritories. An SBA 7(a) loan covers the franchise fee, initial marketing, insurance and working capital, while two trucks are leased separately. The lender reviews the franchisor’s budget and forecast and the subterritory activation schedule.
A buyer acquiring an existing franchise. A buyer purchases an operating franchise from an owner who is retiring. The lender underwrites the business’s revenue history, the trucks transfer with the business, the seller carries a small subordinate note and the franchisor approves the transfer.
An owner adding trucks. An established franchisee whose crews are fully booked finances two additional trucks and adds a line of credit to fund hiring before the busy season.
An owner using installments. A new franchisee taking twelve subterritories is allowed to pay the fee for some of them in installments. The lender counts those payments in debt service and sizes the loan accordingly.
Common Mistakes to Avoid
- Treating the Item 7 truck deposit as the full cost of the fleet and forgetting the monthly payments that follow
- Buying more subterritories than the budget can activate on schedule
- Ignoring minimum royalties in subterritories that have not yet built revenue
- Underestimating insurance, fuel and disposal costs as trucks are added
- Structuring truck leases and the SBA loan separately without checking lien positions
- Borrowing for a long term without understanding the 5-year initial term and renewal conditions
- Starting the busy season without enough working capital to hire and train crews
For more pitfalls that apply to service businesses, read the restoration company loan mistakes that cost owners the most.
Next Steps to Finance Your 1-800-GOT-JUNK? Franchise
Step 1: Confirm territory availability. Talk with the franchisor about open territory in your market or existing franchises that may be for sale.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 17, 19 and 20, the franchise agreement and the guarantee with a franchise attorney and accountant.
Step 3: Build your budget and forecast. Use the franchisor’s process to prepare a three-year cash flow projection with a break-even point, truck schedule and subterritory activation plan.
Step 4: Talk with a financing specialist early. Learn how an SBA 7(a) or conventional loan and separate truck financing would fit together before you sign.
Step 5: Line up truck financing. Decide which trucks will be leased and which purchased, and coordinate lien positions with your main lender.
Step 6: Apply and coordinate approvals. Submit your loan request with the FDD, agreements, personal financial statement, tax returns and projections, and align closing with the franchisor’s commitment process.
Step 7: Close and launch. Fund your working capital reserve, complete training, take delivery of trucks and launch your initial marketing.
1-800-GOT-JUNK? Franchise Loan FAQs
How much does it cost to open a 1-800-GOT-JUNK? franchise?
According to the 2025 FDD, the estimated initial investment is $183,800 to $294,000 for a franchisee with 8 to 12 subterritories. The figure includes a truck deposit rather than the full cost of trucks, which are usually leased or financed.
What is the 1-800-GOT-JUNK? franchise fee?
The fee is $8,125 per subterritory with a minimum of eight subterritories, for a minimum fee of $65,000. Twelve subterritories cost $97,500.
What ongoing fees does a franchisee pay?
The FDD describes a royalty on Gross Revenue with a minimum royalty for each subterritory, a Sales, Marketing and Technology Fee of 8% of Gross Revenue and, where established, branding cooperative contributions capped at 5% of Gross Revenue. Confirm the current royalty rate in Item 6.
How much liquid capital do I need?
The franchisor’s corporate franchising materials call for a minimum of $70,000 in liquid capital. Lenders will also expect reserves beyond your equity injection.
Can I get an SBA loan for a 1-800-GOT-JUNK? franchise?
Yes, if you qualify. The brand is listed on the SBA Franchise Directory under code S0005, so eligible borrowers can apply for SBA 7(a) financing. The listing’s note requires the lender to obtain the correct lien position on all collateral.
Can I finance the trucks separately?
Yes. Trucks with dump bodies are often leased or financed on their own, and the Item 7 table includes only a lease or purchase deposit. Coordinate truck financing with your main lender so lien positions line up.
Does the franchisor offer financing?
The FDD says the franchisor may, at its discretion, allow the fee for some subterritories to be paid in monthly installments. Review Item 10 of the current FDD for any other financing disclosures; most owners arrange outside financing.
Can I buy an existing 1-800-GOT-JUNK? franchise?
Yes, subject to the franchisor’s transfer approval. The FDD lists a $10,000 transfer fee, with $2,500 due when the seller announces the intention to sell and the balance at transfer.
How long is the franchise term?
The initial term is 5 years from the Scheduled Opening Date, with 3 additional 5-year renewal terms available to franchisees who meet the renewal conditions.
Can a first-time owner get a 1-800-GOT-JUNK? franchise loan?
Yes, if the franchisor approves the candidate and the lender is comfortable with the plan. Management or sales experience, a realistic projection and adequate liquidity all strengthen the request.
Do I need real estate?
Very little at the start. The 2025 FDD budgets $1,200 to $5,000 for real estate and rent. Some established owners later lease or buy a yard for trucks.
What documents do I need to apply?
Typically the FDD, franchise or reservation agreement, personal financial statement, personal and business tax returns, a resume and a monthly projection. For a resale, add the business’s financial statements and a list of trucks.
Does the FDD include financial performance information?
Yes. Item 19 of the 2025 FDD includes historical Gross Revenue information compiled from franchisee data. Review it with your accountant, and rely on actual financials when buying an existing franchise.
Final Thoughts
A 1-800-GOT-JUNK? franchise loan is less about bricks and mortar and more about territory, trucks, people and launch capital. Buyers who understand the subterritory model, plan truck financing alongside the main loan, budget for minimum royalties and insurance, and use the brand’s SBA Franchise Directory listing wisely give themselves room to grow from the first truck to a full fleet.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing for established brands. Learn more about our franchise financing and restoration, remediation and cleaning business financing solutions.
