Smash My Trash Franchise Prices, Charges, Revenues, Income (2022 Evaluate)

Amanda Bullock / November 10,2022
  • Part I – Smash My Trash Franchise Prices
  • Part II – Smash My Trash’s Preliminary Franchise Payment, Royalty Payment, and Advertising Payment
  • Part III – Variety of Franchised and Firm-Owned Smash My Trash Shops
  • Part IV – Information Updates on the Smash My Trash Franchise
  • Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the Smash My Trash Franchise (Merchandise 19, 2022 FDD)
  • Part VI – Smash My Trash Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers)
  • Franchised
  • Firm-Owned
  • Half 1 – Franchisees Open Between 12-15 Months as of 12/31/2021
  • Half 2 – Franchisees Open 16 Months or Extra as of 12/31/2021
  • Half 3 – Franchisees Open Between 12-15 Months as of 12/31/2021 Operated Full Time by Proprietor of the Franchise
  • Half 4 – Franchisees Open Between 12-15 Months as of 12/31/2021 Operated Semi-Absentee by Proprietor of the Franchise
  • Half 5 – Franchisees Open 16+ Months as of 12/31/2021 Operated Full Time by Proprietor of the Franchise
  • Half 6 – Franchisees Open 16+ Months as of 12/31/2021 Operated Semi-Absentee by Proprietor of the Franchise
  • Half 7 – Franchisee Efficiency Primarily based on Whole Territories Owned (1 to three Territories)
  • Half 8 – Franchisee Efficiency Primarily based on Whole Territories Owned (4 to 7 Territories)
  • Half 9 – Franchisee Efficiency Primarily based on Whole Territories Owned (8+ Territories)
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    On this unique Franchise Chatter FDD Discuss publish, you’ll study the next:

    Part I – Estimated preliminary funding (franchise prices) for a Smash My Trash franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

    Part II – Preliminary franchise payment, royalty payment, and advertising and marketing payment for a Smash My Trash franchise, primarily based on Gadgets 5 and 6 of the corporate’s 2022 FDD

    Part III – Variety of franchised and company-owned Smash My Trash shops firstly of the 12 months and the top of the 12 months for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

    Part IV – Information updates on the Smash My Trash franchise alternative

    Part V – Presentation and evaluation of Smash My Trash’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with info on the:

    • 2021 common product sales, gas prices, upkeep/restore prices, payroll prices, adjusted EBITDA, and revenue margin for the 21 Smash My Trash franchisees open between 12-15 months as of 12/31/2021, and 28 Smash My Trash franchisees open 16+ months as of 12/31/2021 (individually acknowledged)
    • 2021 common product sales, gas prices, upkeep/restore prices, payroll prices, adjusted EBITDA, and revenue margin for the 15 Smash My Trash franchisees open between 12-15 months as of 12/31/2021 operated full time by proprietor of the franchise, and 6 Smash My Trash franchisees open between 12-15 months as of 12/31/2021 operated semi-absentee by proprietor of the franchise (individually acknowledged)
    • 2021 common product sales, gas prices, upkeep/restore prices, payroll prices, adjusted EBITDA, and revenue margin for the 23 Smash My Trash franchisees open 16+ months as of 12/31/2021 operated full time by proprietor of the franchise, and 5 Smash My Trash franchisees open 16+ months as of 12/31/2021 operated semi-absentee by proprietor of the franchise (individually acknowledged)
    • 2021 common product sales, gas prices, upkeep/restore prices, payroll prices, adjusted EBITDA, and revenue margin for the 28 Smash My Trash franchisees with 1-3 territories owned, 16 Smash My Trash franchisees with 4-7 territories owned, and 5 Smash My Trash franchisees with 8+ territories owned (individually acknowledged)

    Part VI – Key ratios, comparables, computations, and analyses for the Smash My Trash franchise alternative (unique content material for Platinum subscribers)

    Part I – Smash My Trash Franchise Prices

    • Preliminary Franchise Payment:  $49,500
    • Hire, Utilities, and Leasehold Enhancements:  $500 to $2,500
    • Market Introduction Program:  $2,500 to $7,500
    • Furnishings, Fixtures, and Tools:  $500 to $2,000
    • Pc Programs:  $400 to $1,500
    • Insurance coverage:  $2,000 to $4,500
    • Smash Vehicles:  at the moment $247,000 to $270,000 (excluding gross sales tax)
    • Licenses and Permits:  $500 to $1,000
    • Dues and Subscriptions:  $350 to $1,000
    • Skilled Charges (lawyer, accountant, and so forth.):  $2,500 to $5,000
    • Journey, Lodging, and Meals for Preliminary Coaching:  $2,000 to $3,000
    • Further Funds (for first 3 months):  $30,000 to $50,000
    • Whole Estimated Smash My Trash Franchise Prices:  $339,850 to $400,500

    Part II – Smash My Trash’s Preliminary Franchise Payment, Royalty Payment, and Advertising Payment

    • Preliminary Franchise Payment:  $49,500
    • Royalty:  8% of Gross Gross sales, topic to month-to-month minimums. Starting within the third month after you open for enterprise, there’s a minimal month-to-month Royalty Payment primarily based on the variety of Territories you buy. Ancillary Providers (Non-Smash) Income: 8% of Gross Revenue.
    • Model Fund Contribution:  1% of Gross Gross sales
    • Market Cooperative Contribution:  as decided by co-op. At the moment, none. Nevertheless, as soon as co-op is fashioned, not lower than 1% of Gross Gross sales.

    Part III – Variety of Franchised and Firm-Owned Smash My Trash Shops

    Franchised

    2019

     

    • Shops on the Begin of the 12 months:  0
    • Shops on the Finish of the 12 months:  2
    • Internet Change:  +2

    2020

    • Shops on the Begin of the 12 months:  2
    • Shops on the Finish of the 12 months:  67
    • Internet Change:  +65

    2021

    • Shops on the Begin of the 12 months:  67
    • Shops on the Finish of the 12 months:  113
    • Internet Change:  +46

    Firm-Owned

    2019

    • Shops on the Begin of the 12 months:  4
    • Shops on the Finish of the 12 months:  4
    • Internet Change:  0

    2020

    • Shops on the Begin of the 12 months:  4
    • Shops on the Finish of the 12 months:  0
    • Internet Change:  -4

    2021

     

    • Shops on the Begin of the 12 months:  0
    • Shops on the Finish of the 12 months:  2
    • Internet Change:  +2

    Part IV – Information Updates on the Smash My Trash Franchise

    Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the Smash My Trash Franchise (Merchandise 19, 2022 FDD)

    • As of December 31, 2021, there have been 56 Smash My Trash franchisees that had been open and working the kind of enterprise provided below the Disclosure Doc for at the least 12 months. A Smash My Trash franchisee opens for enterprise when it takes supply of its first Smash Truck.
    • As of December 31, 2021, 26 of these franchisees had been open between 12-15 months, and the remaining 30 franchisees had been open for 16 months or longer. There have been no company or affiliate-owned places working for the whole 2021 calendar 12 months.
    • The charts beneath embody historic monetary knowledge submitted to Smash My Trash by 50 of the 56 Smash My Trash franchisees described above.
    • This monetary knowledge has not been audited or in any other case inspected for accuracy past the figures offered to Smash My Trash by its franchisees. Smash My Trash has not inspected its franchisees’ receipts or different documentation supporting the figures they’ve offered to it.
    • Smash My Trash excluded 5 franchisees from the 12-15 month group. Of those 5 excluded franchisees, one underwent an possession switch to a brand new proprietor throughout 2021, and 4 didn’t observe Smash My Trash’s System Requirements, experiencing irregular worker turnover charges, failing to make the most of required programs, failing to report sure exercise, and failing to just accept nationwide account alternatives from Smash My Trash.
    • Smash My Trash excluded two franchisees from the 16+ month group. One of many excluded franchisees didn’t observe Smash My Trash’s System Requirements, failing to safe buyer agreements, and failing to route prospects pursuant to system necessities. The opposite excluded franchisee underwent an possession change throughout 2021 to a brand new proprietor.
    • Smash My Trash has reviewed the monetary statements submitted by the remaining 49 Smash My Trash franchisees described above to establish inconsistencies with the System Requirements or accounting irregularities. Smash My Trash made changes to the monetary knowledge to account for improper deductions and categorization of curiosity expense, taxes, depreciation, amortization, and proprietor distributions.
    • Changes had been made to scale back quantities allotted to enterprise bills like journey, meals and leisure, lodging, private auto bills, residence workplace bills in extra of affordable quantities, administration charges, and officer salaries.

    Half 1 – Franchisees Open Between 12-15 Months as of 12/31/2021

    • Rely:  21
    • Common Gross Gross sales:  $317,293 (100.0%)
    • Common Gas Prices:  $18,289 (5.8%)
    • Common Upkeep/Restore Prices:  $10,863 (3.4%)
    • Common Payroll Prices:  $143,228 (45.1%)
    • Common Adjusted EBITDA:  $58,772 (18.5%)
    • Common Revenue Margin:  -5.89%

    Half 2 – Franchisees Open 16 Months or Extra as of 12/31/2021

    • Rely:  28 (27 for Gas Prices)
    • Common Gross Gross sales:  $566,730 (100.0%)
    • Common Gas Prices:  $24,687 (4.4%)
    • Common Upkeep/Restore Prices:  $13,154 (2.3%)
    • Common Payroll Prices:  $170,768 (30.1%)
    • Common Adjusted EBITDA:  $196,989 (34.8%)
    • Common Revenue Margin:  30.43%

    Half 3 – Franchisees Open Between 12-15 Months as of 12/31/2021 Operated Full Time by Proprietor of the Franchise

    • Rely:  15
    • Common Gross Gross sales:  $332,037 (100.0%)
    • Common Gas Prices:  $19,694 (5.9%)
    • Common Upkeep/Restore Prices:  $11,473 (3.5%)
    • Common Payroll Prices:  $138,989 (41.9%)
    • Common Adjusted EBITDA:  $89,161 (26.9%)
    • Common Revenue Margin:  13.5%

    Half 4 – Franchisees Open Between 12-15 Months as of 12/31/2021 Operated Semi-Absentee by Proprietor of the Franchise

    • Rely:  6
    • Common Gross Gross sales:  $290,053 (100.0%)
    • Common Gas Prices:  $14,532 (5.0%)
    • Common Upkeep/Restore Prices:  $9,585 (3.3%)
    • Common Payroll Prices:  $149,664 (51.6%)
    • Common Adjusted EBITDA:  -$577 (-0.2%)
    • Common Revenue Margin:  -35.9%

    Half 5 – Franchisees Open 16+ Months as of 12/31/2021 Operated Full Time by Proprietor of the Franchise

    • Rely:  23 (22 for Gas Prices)
    • Common Gross Gross sales:  $536,970 (100.0%)
    • Common Gas Prices:  $22,836 (4.3%)
    • Common Upkeep/Restore Prices:  $12,367 (2.3%)
    • Common Payroll Prices:  $147,982 (27.6%)
    • Common Adjusted EBITDA:  $162,959 (30.3%)
    • Common Revenue Margin:  26.4%

    Half 6 – Franchisees Open 16+ Months as of 12/31/2021 Operated Semi-Absentee by Proprietor of the Franchise

    • Rely:  5
    • Common Gross Gross sales:  $703,628 (100.0%)
    • Common Gas Prices:  $32,831 (4.7%)
    • Common Upkeep/Restore Prices:  $16,774 (2.4%)
    • Common Payroll Prices:  $275,586 (39.2%)
    • Common Adjusted EBITDA:  $353,524 (50.2%)
    • Common Revenue Margin:  48.8%

    Half 7 – Franchisee Efficiency Primarily based on Whole Territories Owned (1 to three Territories)

    • Rely:  28 (27 for Gas Prices)
    • Common Gross Gross sales:  $390,132 (100.0%)
    • Common Gas Prices:  $18,982 (4.9%)
    • Common Upkeep/Restore Prices:  $10,160 (2.6%)
    • Common Payroll Prices:  $137,180 (35.2%)
    • Common Adjusted EBITDA:  $113,958 (29.2%)
    • Common Revenue Margin:  14.57%

    Half 8 – Franchisee Efficiency Primarily based on Whole Territories Owned (4 to 7 Territories)

    • Rely:  16
    • Common Gross Gross sales:  $448,866 (100.0%)
    • Common Gas Prices:  $21,335 (4.8%)
    • Common Upkeep/Restore Prices:  $12,282 (2.7%)
    • Common Payroll Prices:  $156,342 (34.8%)
    • Common Adjusted EBITDA:  $119,198 (26.6%)
    • Common Revenue Margin:  8.65%

    Half 9 – Franchisee Efficiency Primarily based on Whole Territories Owned (8+ Territories)

    • Rely:  5
    • Common Gross Gross sales:  $885,210 (100.0%)
    • Common Gas Prices:  $39,346 (4.4%)
    • Common Upkeep/Restore Prices:  $23,086 (2.6%)
    • Common Payroll Prices:  $289,361 (32.7%)
    • Common Adjusted EBITDA:  $330,381 (37.3%)
    • Common Revenue Margin:  36.42%
    • “Gross Gross sales,” as used within the tables above, contains all consideration, whether or not by money, credit score, in type or in any other case, that was derived immediately or not directly from the operation of the represented Smash My Trash enterprise.
    • The above tables don’t embody sure prices and bills you’ll incur within the classes of occupancy bills, depreciation and amortization, and franchise charges, Royalty Charges, Model Fund Contributions, or different charges listed in Merchandise 6 of the Disclosure Doc. Smash My Trash additionally doesn’t account for curiosity or principal funds on loans to the enterprise or earnings taxes owed by the enterprise or its house owners.
    • Some shops have bought this quantity. Your particular person outcomes might differ. There is no such thing as a assurance you’ll promote as a lot.
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