1-800-GOT-JUNK? LLC - 100th Franchise in 2004

100th Franchise in 2004

In July 2004 the firm celebrated the awarding of its 100th franchise. 1-800-GOT-JUNK? now served 46 metropolitan areas in the United States and Canada, with 90 percent of franchises located south of the border. Sales had increased more than 100 percent for the fourth consecutive year, with systemwide revenues hitting $38.6 million.

A franchise now cost $18,000 for an exclusive territory with a population of 125,000, plus another $6,000 for a marketing package. Additional territories were priced at $8,000 each. The firm continued to collect approximately 15 percent of gross revenues in royalties and to fund call center operations.

In May 2005 1-800-GOT-JUNK? announced that it would begin using MapPoint Location Server software on its Vancouver trucks as part of a Microsoft pilot project. Drivers would carry Web-enabled smart phones that could display work orders and maps, and the cell-phone locating capabilities of Sprint would pinpoint the closest truck to a pickup, which would reduce fuel costs and driving time.

The spring also saw the firm forge an alliance with Oakleaf Waste Management, which represented a network of 3,500 independent haulers. Oakleaf would refer business to 1-800-GOT-JUNK? in exchange for a 5 percent referral fee.

By the summer of 2005 the firm had awarded more than 150 franchises, including one that was set to open in Sydney, Australia. Systemwide revenues of $75 million were projected for the year.

A little more than 15 years after Brian Scudamore had started a summertime trash hauling service, 1-800-GOT-JUNK? LLC had grown into a 150-franchise chain with a presence in 48 of the top 50 markets in North America. The firm's high-tech approach to what had once been the province of small-time operators with rusty pickup trucks was one key to its success, as was a healthy dose of marketing flair. Under its young owner's continued guidance, the company's future appeared bright.

Key Dates:

1989:
Brian Scudamore founds The Rubbish Boys in Vancouver, British Columbia.
1994:
The firm, now with three trucks, opens an office in Vancouver.
1995:
A branch location opens in Victoria, British Columbia; development of JunkNet software begins.
1996:
Revenues top $1 million.
1997:
The first U.S. location opens in Seattle, Washington.
1998:
The company phone number and name is changed to 1-800-GOT-JUNK
1999:
A franchising program begins with a new location in Toronto.
2002:
The headquarters and call center are moved to a 9,000-square-foot space.
2005:
Locations top 150; the first overseas unit is added in Australia.