This area covers many of the frequently asked questions that our franchisees ask when buying a Dumpster Today franchise. We also cover very important information on financing, licensing, and profitability. Invest in your Tomorrow, TODAY! If you have any questions, give us a call.
What is a Franchise?
A franchise, in its simplest definition, is a business opportunity that allows the franchisee (possibly you) to start a business by legally using someone else's (the franchisor's) existing business model, expertise, ideas, processes and success strategies in a specific territory or area.
What is a Franchisor?
A franchisor is a person or company that grants a license to a third party (possibly you) for the conducting of a business under the franchisor's marks using its existing business model, expertise, ideas, processes and success strategies.
What is a Franchisee?
A franchisee is a small business owner who operates a franchise. The franchisee has purchased the right to use an existing business’s trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business, in a specific territory or area.
How do Franchises work?
Generally, it involves the owner of a business (known as the franchisor) licensing to a third party (known as the franchisee) the right to operate a business or distribute goods and/or services using the franchisor's business name and systems (which varies depending on the franchisor) for an agreed period of time, in a specific territory or area.
What is a royalty fee?
Royalties are monthly payments from the franchisee to the franchisor for the use of the brand, the business model and ongoing support. Franchisors collect fees from all of the locations licensed to use their business model and brand, using those payments to create products, marketing campaigns, pay administrative employees, research and development in order to grow the brand and the systems.
How much are royalties?
Royalty costs for franchises can be anywhere from 4% to 12% of revenue depending on the type of business. Dumpster Todays franchise fee is indicated in the franchise agreement and is only 7%.
How much does a territory cost?
A single territory with a population up to 500,000 is only $45,000.00. Additional areas and/or larger populations can be purchased at the time usually for a discounted amount.
What do I get for my upfront franchise fee?
You get a 100% exclusive and protected territory with a population of 500,000 (est.) residents and 100,000 home owners (est.), the training and all the systems and processes required to succeed. But, it doesn’t stop there. You also get access to our experienced team with ongoing support and consultancy in the management, advertising options, and overall growth of your location(s) - along with access to all the equipment needed and designed by us.
Can I buy one location now and then buy another later?
Yes, but keep in mind territories are selling every day. If you think you might want to own more territory and be a larger franchisee you might want to do it up front and sign a Multi-Unit Development Agreement (MUDA)
Can I buy multiple territories?
Yes! You can own more than one territory. Dumpster Today has designed a system that is perfect for any size business. From small Mom & Pop style ownership to multiple franchises or even regional area franchise opportunities, Dumpster Today has streamlined the processes allowing for less employees, larger areas, and higher revenue while still maintaining a great work-life benefit.
When is the best time to buy a business?
Simple answer is NOW! There has never a better time to start earning and building wealth, and with rates at an all-time low right now could quite frankly be THE BEST TIME.
Can I sell my business if I want to?
Yes! You own your business, not the franchisor. You can sell your business at any time. In fact, franchises are often easier to sell than stand-alone businesses, because the Franchisor or another franchisee who is already familiar with the business and system might be willing to pay top dollar immediately for it.
Will my business be worth more because it’s a franchise?
Studies have shown that franchise owners tend to get higher prices for their franchise businesses when they sell.
Is it hard to sell a franchise?
Selling an operating franchise has a higher success rate than selling an independent business because most buyers place a high value on the support provided by the franchisors.
How much can I expect to make?
We can’t guarantee profit or success but you will likely start earning money your first month in business, often even your first week in business.
How much capital do I need to get started?
The average startup cost for a new territory with Dumpster Today is between $75,000 and $150,000. This covers franchise fee, down payments on equipment, training cost, down payment on a lease of new office space, and your first few months of advertising, payroll, etc.
Is financing available?
YES! Dumpster Today has several financing companies that will lend or lease the needed equipment. Dumpster Today is also SBA approved franchise. Many times an SBA loan is the way to go because the SBA will lend will lend for both the assets (truck, dumpster, computer, etc.) and sometimes operation and starting cost and/or fees as well.
Can I use my 401K to get started?
YES! In most cases you can borrow from your 401K to get your new franchise started. This is a great question for your CPA.
How long is training?
New Franchise training consists of a minimum of 10 days. This is 5 days (1 week) at Dumpster Today’s Corp. Headquarters in Orlando, FL and 5 days (1 week) right in your new territory. But, it doesn’t stop there! Dumpster Today believes “When Your Green You Grow, and When Your Ripe, you Rot” so training is ongoing. Dumpster Today is consistently upgrading equipment and process along with working on RND (research and development) which greatly benefits franchisees. Dumpster Today also offers workshops and training at their yearly national conferences and phone support almost every day of the year.
How much do dumpsters cost?
Dumpsters can range from about $3,000 all the way up to $5,000 each. With Dumpster Today the costs stay near the low end because of our unique design, buying power and purchasing experience.
How much do trucks cost?
A traditional roll-off truck costs between $150,000-$185,000 but because Dumpster Today builds their Neighborhood Friendly truck right in their Orlando, FL corporate location and has fleet pricing, brand new trucks range from $65,000.00 to $85,000.00. This includes EVERYTHING in the roll-off truck you need to start earning money and becoming successful.
Are there any additional royalties or marketing fees?
Yes, Dumpster Today also has a marketing fee. These funds are used to help build and grow the brand.
How much liquid capital will I need to maintain to cover the franchise until it breaks even?
We recommend you have at least 3-6 months of expenditures available to ensure your success. This includes payroll, truck payments (if you have one), insurance payments, dumpster payments (if you have any), fuel, marketing, etc... Even though you might not need all of this because you will likely start earning money your first month, we still recommend it so you can experience great growth and really build your business in the first 3-6 months.
Can anyone drive the truck?
YES, well anyone with a license. Dumpster Today’s Neighborhood Friendly trucks do not require a CDL (Commercial Driver’s License) so anyone with a regular driver’s license can drive them and deliver dumpsters.
Do I need a special license to drive the trucks?
No! Dumpster Today’s Neighborhood Friendly trucks do not require a CDL (Commercial Driver’s License) so anyone with a regular driver’s license can drive them and deliver dumpsters.
How big will my territory be and how will I be protected?
Your territory size will be determined by several factors, including but not limited to the population of the areas where you will be opening, your comfort level with risk, and your financials.
Is my territory exclusive or protected?
Yes 100%! When you buy a Dumpster Today Territory you get an exclusive territory that no other Dumpster Today franchise can operate in. Territories are designed using zip codes so if you own that zip code then no one else can sell or deliver in it.
What are your transfer fees when I sell my franchise?
The fees should be indicated in your franchise agreement. Some franchises do not charge a transfer fee; others charge fees between $1,000 and $30,000.
Does Dumpster Today have any competitive advantages?
YES! Too many to list. If you are interested in learning about owning a Dumpster Today Franchise, please contact a Dumpster Today Franchise Sales Professional TODAY and start signing the front of the checks instead of the back.
How long does it take for a business to make money and become profitable?
Two to three years is the standard estimation for how long it takes a business to be profitable. That said, each startup has different initial costs and ways of measuring profit. A business could become profitable immediately and with Dumpster Today you will likely start earning revenue your first month.
What is a “Neighborhood Friendly Dumpster”?
A Neighborhood Friendly Dumpster is a dumpster that is lighter (so it doesn’t damage your driveway), cleaner, better looking and shorter (so it doesn’t block your sidewalk) than most roll-off dumpsters - with easy-open double doors. Traditional dumpsters are long, heavy, and have a single hard to open the door on the rear. Some cities and HOA’s will fine a contractor or a homeowner if the dumpster blocks or impedes the sidewalk. Single heavy doors can be hard to open by yourself.
What is a “Neighborhood Friendly Truck”?
Neighborhood friendly trucks are trucks that were designed to be smaller (so they can deliver in residential areas like cal de sac’s and alleys), lighter (so they don’t damage driveways), quieter (so they don’t disturb your neighbors) and easier to drive. Neighborhood friendly trucks also don’t require a CDL license to drive so anyone with a regular license can drive them.
What is a MUDA?
MUDA is an acronym for Multi-Unit Development Agreement. MUDA’s are used when a franchise owner knows they want to develop a larger city or own multiple cities. Some franchisees do this over a period of time and some elect to do it all at once.
