FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S0005 since 2017

1-800-GOT-JUNK?

Home Services · independent · est. —

1-800-GOT-JUNK? is a full-service junk-removal company that hauls away unwanted furniture, appliances, renovation debris, and general clutter from homes and businesses. Crews do the lifting and loading, then dispose of, donate, or recycle the items. A franchisee operates trucks and crews in a local territory, booking jobs and managing pickups.

1-800-GOT-JUNK? net unit count grew +3.5% from 20222024 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & strong

Distress

6
STABLE

Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: owners who leave mostly sell rather than fail.

Exit rate · latest year

0.0%

vs 9.2% across 42 home services systems

Cost to open

$184K–$294K

Item 7 total investment range

SBA loan defaults

11.4%

vs 14.8% avg across rated brands

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Weak
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2022–2024

+3.5%
141202214920231462024

Survival record

FDD Item 20 · outlet status by year

In fiscal 2024, 0 of 133 franchised outlets left the system — a 0.0% annualized exit rate, vs 9.2% across 42 home services systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202220232024
Outlets at start133141149
Opened871
Transfers4143
Terminations000
Non-renewals000
Reacquired by franchisor3730
Ceased — other reasons000
Outlets at end141149146
Net change+8+8-3

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 45 SBA-backed loans to 1-800-GOT-JUNK? franchisees since 1994. Of the 35 that have resolved, 11.4% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.

Charge-off rate

11.4%

4 of 35 resolved defaulted

Loss given default

36.2%

avg. charged-off $ ÷ approved $

Expected loss

4.1%

default rate × loss severity

Avg. loan · FY2020+

$721,976

what recent franchisees borrowed

Median time to default

49 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

4 vs 8

distinct banks — pulling back

Charge-off rate by loan approval year (%)

Loan performance by state

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO 1-800-GOT-JUNK? BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Who finances it

Bank of America, National Association

10.8% of this brand's loans

That lender charges off 13.1% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

69.7%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

Not enough resolved loans to split

Computed from 45 SBA 7(a)/504 loans to 1-800-GOT-JUNK? franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $65K franchise fee (Item 5) and a total investment of $184K–$294K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$184K–$294K

all-in investment range

Franchise fee (Item 5)

$65K

upfront, one-time

Royalty (Item 6)

8%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$80K

8% of sales, before profit

Over a 10-yr term

$800K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for 1-800-GOT-JUNK? with an independent CPA

Labor record

US Dept. of Labor enforcement · franchisee-level · FY2005–present

Federal investigators have concluded 2 wage cases against operators of this system, recovering $4K in back wages for 16 workers. These cases name franchisee-owned locations, not the franchisor itself.

Concluded cases

2

Back wages owed

$4K

Employees affected

16

Since 2020

0

Read this carefully. The employers in these cases are individual 1-800-GOT-JUNK? franchisees — separately owned businesses operating under the brand name — not 1-800-GOT-JUNK? itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2011.

Modeled risk

FDD Risk Score · modeled from the public record

Elevated

Modeled from the public record, this brand sits mid-pack: riskier than 70% of systems we score.

Risk percentile

70 / 100

Loan-corroborated

Modeled SBA charge-off

15.6%

Observed SBA charge-off

11.4%

Top drivers: Net unit growth (raises) · Share financed by high-loss lenders (lowers) · Single-lender dependence (raises) · Item 20 exit rate (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

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1-800-GOT-JUNK? franchise questions, answered from the filings

What percentage of 1-800-GOT-JUNK? franchises closed last year?

In 1-800-GOT-JUNK?'s latest FDD Item 20 (fiscal 2024), 0 of 133 franchised outlets left the system — an annualized exit rate of 0.0% — compared with 9.2% across 42 home services systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a 1-800-GOT-JUNK? franchise cost?

Per 1-800-GOT-JUNK?'s 2025 FDD, buying in requires an initial franchise fee of $65K (Item 5) and a total initial investment of $184K–$294K (Item 7).

What royalty does 1-800-GOT-JUNK? charge?

1-800-GOT-JUNK? charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2025 FDD.

Does 1-800-GOT-JUNK? disclose earnings (Item 19)?

Yes — 1-800-GOT-JUNK? makes a financial performance representation in Item 19 of its 2025 FDD. Read it closely: franchisors choose which units and which metrics to include.

How often do SBA loans for 1-800-GOT-JUNK? franchises default?

Across 45 SBA-backed loans to 1-800-GOT-JUNK? franchisees since 1994, 4 of the 35 that have resolved were charged off — a 11.4% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.

Is 1-800-GOT-JUNK? a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk