How to Finance a Junk King Franchise: Trucks and Territory Fees
By Anthony Cornella
A Junk King franchise loan looks very different from a restaurant or retail loan. There is no storefront to build and no kitchen to equip; most of the money goes to the territory fee, the first truck and enough working capital to carry the business while it builds a customer base. Because the franchise fee is priced by population, the size of your market directly sets how much you need to finance.
This article covers the franchisor’s published costs and requirements, how territory pricing and truck purchases shape the budget, what the brand’s SBA Franchise Directory listing means and how buyers combine SBA, conventional, vehicle and working capital financing.
US Professional Funding is not affiliated with, sponsored by or endorsed by Junk King; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Junk King Franchise Loan at a Glance
- Initial franchise fee: $54,000 to $78,000, calculated at $0.12 per person in the territory, according to the franchisor’s franchising site.
- Territory size: built from zip codes, with roughly 450,000 to 650,000 people per territory.
- Estimated initial investment: an average range of $93,000 to $180,000 depending on market size, per the franchisor’s investment page, which refers buyers to Item 7 of the FDD.
- Royalty: 8% of gross revenue, paid monthly.
- Customer Care Center fee: 5% of gross revenue, paid monthly, plus a monthly advertising fund fee.
- Financial requirements: $50,000 in liquid assets and a $150,000 net worth.
- Franchise term: 10 years, renewable for an additional 10 years.
- System size: the franchising site cites 100 franchises in 33 states and more than 400 trucks.
- Veteran incentive: 10% off the initial franchise fee for qualifying honorably discharged veterans.
- SBA Franchise Directory: listed as Junk King (code S0919), with no additional directory notes.
What Is Junk King?
Junk King was founded in 2005 by two friends working out of a two-car garage in San Carlos, California, and began franchising in 2010, according to the company. It provides junk removal and hauling for residential, business and local government customers across the United States and Canada, supported by a national call center and proprietary scheduling and job-tracking software.
The company says about 60% of a typical truckload is recyclable, reusable or repurposable. Franchisees resell or donate usable items, recycle scrap metal and take the remainder to disposal sites. The franchisor’s site describes four revenue streams and says its trucks are larger than those of its nearest competitors.
Why lenders view it the way they do. A junk removal franchise is a service business with low fixed overhead and modest startup costs, but most of its value sits in intangible assets: the territory rights, the brand and the customer pipeline. Hard collateral is mostly limited to trucks. That makes lenders lean on the borrower’s personal strength, the territory’s market potential and a realistic plan for building volume, rather than on equipment or real estate.
Junk King Franchise Costs
Initial franchise fee. Junk King prices its territories at $0.12 per person, which produces a franchise fee of $54,000 to $78,000 for a territory of roughly 450,000 to 650,000 people. The fee is paid as a lump sum at signing and is usually the largest single item a Junk King franchise loan has to cover.
Vehicles. Franchisees operate non-CDL trucks and start with one, adding more as volume grows and as operational support advises. The investment page budgets $15,000 to $20,000 for vehicles at opening. Each added truck brings its own down payment and monthly payment.
Facility. There is no retail storefront. The budget includes an office and warehouse lease, leasehold improvements, prepaid expenses and insurance, which together are small compared with the territory fee.
Opening costs and working capital. Travel and living expenses for training, inventory, supplies, fixtures and equipment, signage and pre-opening payroll round out the startup budget. Additional funds for the first 3 months are estimated at $15,000 to $50,000.
Total investment. The franchisor’s investment page gives an average range of $93,000 to $180,000 depending on market size and describes the figures as approximate. Its main categories are:
- Initial franchise fee: $54,000 to $78,000
- Vehicles: $15,000 to $20,000
- Additional funds for 3 months: $15,000 to $50,000
- Travel and living expenses while training
- Inventory, supplies, fixtures, furniture and equipment
- Signage
- Office and warehouse lease
- Leasehold improvements, prepaid expenses and insurance
- Pre-opening payroll
Use the Item 7 table in the current FDD for each line item’s exact range, because the lender will build its sources and uses from that table.
Ongoing Fees and How They Affect Your Loan
Royalty. Junk King charges a royalty of 8% of gross revenue, paid monthly.
Customer Care Center fee. A separate 5% of gross revenue, paid monthly, supports the national call center that books jobs for franchisees.
Advertising fund. Franchisees also pay a monthly advertising fund fee. The franchisor’s FAQ does not state the amount, so confirm it in Item 6 of the FDD along with any technology, transfer and renewal fees.
How lenders factor these costs in. Because the royalty and Customer Care Center fee are both tied to gross revenue, a meaningful share of every job is committed before fuel, disposal fees, labor, truck payments and insurance. Lenders build projections that subtract those fees first, then test whether the remaining cash flow covers debt service with a margin. Disposal and dump fees vary by market, so local cost research makes projections more credible.
Franchisor Requirements for New Owners
- Liquid assets: $50,000.
- Net worth: $150,000.
- Involvement: semi-absentee ownership is permitted, but owners must stay involved.
- Training: owners and any managers attend a week-long training program at corporate headquarters in the San Francisco area.
- Staffing: a new franchise typically starts with 2 to 3 employees.
The approval process. The franchisor describes six steps: an initial call, a franchise presentation, review of the FDD, discovery (individual calls with department heads, a meeting with the CEO and background and asset verification), validation calls with existing franchisees, and finally confirming the territory and signing the franchise agreement. Discovery typically takes four to six weeks, and the business typically opens 5 to 12 weeks after signing.
For financing, that timeline matters. Lenders want the territory defined and the franchise agreement in hand before closing, so start the loan conversation during discovery rather than after signing.
Ways to Own a Junk King
Open a new territory. Most owners buy an open territory and start with one truck. Financing covers the franchise fee, the first truck’s down payment, opening costs and working capital. Our franchise start-up financing page explains how we approach new-unit loans.
Buy an existing franchise. A resale includes an established territory, trucks, staff and a customer history, which gives a lender actual results to underwrite. The buyer needs the franchisor’s transfer approval. Read our article on buying a franchise resale and our page on service business acquisition financing.
Grow by adding trucks. The franchisor’s model is built around adding trucks within a territory. Its investment page notes that fixed monthly expenses stay largely stable as trucks are added, with the truck down payment and monthly payment as the main incremental costs.
Financing Options for a Junk King Franchise
SBA 7(a) loans. Because the brand is listed on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, trucks, opening costs and working capital together. For a business whose largest cost is an intangible territory fee, the 7(a) program is often a practical fit.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. A Junk King typically leases a small office and warehouse, so 504 financing generally fits only if an owner later buys a property for the business.
Conventional term loans. Buyers with strong credit and liquidity, or owners buying a resale with solid history, may use a conventional business loan. Conventional lenders often want more collateral when much of the purchase price is a franchise fee or goodwill.
Vehicle and equipment financing. Trucks can be financed separately with vehicle loans or leases, which keeps the main loan focused on the franchise fee and working capital. Loading equipment, dollies, protective gear and mobile devices can be financed too. See our franchise equipment financing and leasing options.
Working capital and lines of credit. A new territory needs time to build job volume, and fuel, disposal fees and payroll start immediately. A line of credit can bridge slower months and seasonal swings. Learn more about working capital for service businesses.
Seller financing on resales. In some resales, part of the price may be carried by the seller. Any seller note would need to be acceptable to the senior lender, is typically subordinate to it and may be limited by SBA program rules.
Other funding sources. The franchisor’s investment page lists self-funding, third-party lenders, SBA loans, retirement account rollovers and a line of credit as financing options. Each has different tax and risk implications, so review them with an accountant.
SBA Loans for Junk King Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for SBA eligibility. A listing does not approve any borrower; it clears the franchise relationship so the lender can focus on the buyer and the business plan. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
The directory listing. Junk King appears on the SBA Franchise Directory under code S0919 with no additional notes. In plain English, the lender does not have to work through brand-specific exceptions about lease riders, purchase options or other franchise documents before making an SBA-guaranteed loan, beyond its standard SBA review.
SBA application tips. Give the lender the current FDD, the franchise agreement with the territory map, a truck quote, a lease proposal for the office and warehouse and a first-year budget that follows the Item 7 table. Explain the source of your equity injection and show how you will fund personal living expenses during the ramp-up. Our SBA loan calculator can give a planning estimate of payments; it is not an offer or approval.
How Lenders Evaluate a Junk King Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. The franchisor’s $50,000 liquidity and $150,000 net worth minimums are relatively low, so lenders will look closely at reserves after closing. Owners who keep cash beyond the equity injection are better positioned to handle a slow start.
Industry and management experience. Junk removal experience is not required, but lenders value sales, operations, logistics or crew management backgrounds. If you plan a semi-absentee model, the lender will want to know who manages daily operations. Our article on financing a semi-absentee franchise covers what lenders expect.
Business plan and projections. Projections should show job volume ramping up over time, the 8% royalty and 5% Customer Care Center fee, the advertising fund fee, fuel, disposal costs, insurance, labor and truck payments. They should also show when a second truck makes sense.
The FDD and franchise agreement. Lenders review the 10-year term and renewal option, transfer rules, territory protections and any franchisor financing in Item 10. Our article on how lenders read a Franchise Disclosure Document explains which items matter most.
Facility lease. The office and warehouse lease is small, but lenders still check that its term and location support truck parking and storage.
Historical financials for resales. On an existing franchise, lenders want profit and loss statements, tax returns, truck titles and loan balances, and job reports to confirm revenue.
Trucks: The Core Equipment Decision
Trucks are the engine of a Junk King franchise and the main hard asset a lender can secure. The franchisor’s model uses non-CDL trucks, so drivers do not need a commercial driver’s license, which widens the hiring pool.
Buy or lease. Buying builds equity in the vehicle and creates collateral; leasing can lower the upfront cash needed. Either way, each truck adds a fixed monthly payment that the business must cover in slow weeks.
Timing the second truck. Adding a truck too early stretches cash flow; adding it too late leaves jobs unbooked. Lenders are generally more comfortable financing an additional truck once the first is consistently busy and the books show it.
Multi-Unit Growth and Territory Expansion
Growth at Junk King generally comes from adding trucks within a territory or buying additional territories. Because each new territory carries a population-based franchise fee, a second territory is a meaningful financing decision.
Financing additional territories. Once your first territory has operating history, lenders can underwrite its cash flow alongside projections for the new one. Some owners finance additional trucks with vehicle loans and fund new territories with a separate SBA or conventional loan.
Real-World Scenarios
A career changer starting with one truck. A former operations manager buys a territory at the low end of the population range. An SBA 7(a) loan covers the franchise fee, opening costs and working capital, while the truck is financed separately.
A veteran using the fee discount. A qualifying veteran takes the 10% franchise fee discount, which lowers the loan amount and leaves more cash in reserve.
A semi-absentee owner with a manager. An owner keeps a full-time job and hires a manager. The lender asks for the manager’s background and a payroll budget, and wants evidence the owner will stay involved, as the franchisor requires.
A resale buyer adding trucks. A buyer acquires an established franchise with several trucks, finances the purchase using the business’s tax returns and adds a new truck a year later through equipment financing.
Common Mistakes to Avoid
- Choosing the largest territory without projections that support the higher fee
- Underestimating fuel, disposal fees and insurance in projections
- Forgetting that the 5% Customer Care Center fee is in addition to the royalty
- Adding a second truck before the first is consistently busy
- Leaving too little working capital for the ramp-up period
- Assuming semi-absentee ownership means no owner involvement
For more pitfalls that apply to service businesses, read the loan mistakes restoration and cleaning owners should avoid.
Next Steps to Finance Your Junk King Franchise
Step 1: Confirm the requirements. Make sure you have at least $50,000 in liquid assets and a $150,000 net worth, plus personal reserves.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Choose your territory. Review the population, zip codes and competition, and confirm the franchise fee.
Step 4: Price your trucks. Get quotes for buying or leasing the first truck.
Step 5: Build projections. Model job volume, fees, fuel, disposal, labor and truck payments over at least the first two years.
Step 6: Apply for your Junk King franchise loan. Submit tax returns, a personal financial statement, resume, business plan, franchise documents and truck quotes during discovery.
Step 7: Close and launch. Coordinate closing with the franchise agreement, training and truck delivery so you open with working capital in place.
Junk King Franchise Loan FAQs
How much does a Junk King franchise cost?
The franchisor’s investment page gives an average range of $93,000 to $180,000 depending on market size and refers buyers to Item 7 of the FDD for details.
What is the Junk King franchise fee?
The initial franchise fee is $54,000 to $78,000, calculated at $0.12 per person in a territory of roughly 450,000 to 650,000 people. Qualifying veterans receive 10% off.
What royalty does Junk King charge?
The royalty is 8% of gross revenue, paid monthly. Franchisees also pay a 5% Customer Care Center fee and a monthly advertising fund fee.
How much liquid capital do I need?
The franchisor lists $50,000 in liquid assets and a $150,000 net worth.
Can I get an SBA-backed Junk King franchise loan?
Yes, Junk King is listed on the SBA Franchise Directory under code S0919 with no additional notes, so it is eligible for SBA review. Each borrower must still qualify.
Can I finance the truck separately?
Yes. Trucks are often financed with vehicle loans or leases separate from the main franchise loan.
Do I need a commercial driver’s license?
No. The franchisor says franchisees use non-CDL trucks.
Can I run a Junk King semi-absentee?
The franchisor permits semi-absentee operation, but owners must stay involved, and owners and managers attend a week-long training program.
Can I buy an existing Junk King franchise?
Yes, with the franchisor’s approval of the transfer. A resale lets lenders underwrite actual revenue, trucks and customer history.
How long is the Junk King franchise term?
The term is 10 years, renewable for an additional 10 years.
Does Junk King offer financing?
The franchisor’s investment page lists outside options such as self-funding, third-party lenders, SBA loans, retirement account rollovers and a line of credit. Check Item 10 of the current FDD for any franchisor financing.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see what financial performance representations it includes, and ask existing franchisees about their experience during validation.
Final Thoughts
A Junk King franchise loan is mostly about financing a territory and a truck, then giving the business enough runway to build volume. Buyers who choose a territory their projections can support, plan truck purchases carefully and keep healthy reserves give lenders the confidence to say yes, for a first territory or the next one.
US Professional Funding helps franchise owners and buyers finance new territories, acquisitions, vehicles, working capital and refinancing. Learn more about our franchise financing and restoration, remediation and cleaning financing solutions.
