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Junk Hunters In Brief

  • Description

    Provides an efficient and environmentally friendly waste removal and recycling service for domestic and commercial customers

  • Business Type

    Commercial & Industrial

  • Investment Level

    £ 60,000

About Junk Hunters

Junk Hunters was set up in 2017. Company founder Harsha Rathnayake began trading as London Junk in 2008. With a single vehicle, he provided an efficient and environmentally friendly waste removal and recycling service for the domestic and commercial markets in the capital. The business now turns over in excess of £1m per annum and operates a fleet of vehicles.

For domestic customers, Junk Hunters can remove anything from a single item of furniture to the contents of a whole house. For commercial clients, Junk Hunters is geared up to dispose of waste packaging, office furniture and building materials, among other things.

Harsha, now managing director of Junk Hunters, says the company recycles 70 per cent of all items and materials collected, which can provide an additional income source for franchisees, and donates any usable items to various charities.

Recognising the opportunities for significant growth in the waste removal and recycling sector, Harsha decided to franchise the business in order to provide a UK-wide service. The company currently has three UK franchisees.

How does the Junk Hunters franchise model work?

Junk Hunters offers two different franchise opportunities.

The company’s ‘operator model’ allows franchisees to start their own home-based business, keeping overheads to a minimum while they establish themselves. Franchisees begin trading with a single vehicle and fulfil the necessary collection, recycling and disposal tasks. They are also responsible for all sales, marketing and administrative aspects of the business.

As the name suggests, Junk Hunters’ ‘management model’ involves franchisees managing staff to carry out the daily tasks of a waste removal and recycling business. Other key roles include sales and marketing, recruiting and training staff and administration duties.

Using multiple vehicles in many cases, management franchisees will operate from an office or similar suitable commercial premises.

The Junk Hunters management model franchise has a higher investment level than its operator model option, but potential returns can be significantly higher. Operator model franchisees can progress to the management model once their businesses are established.

Franchisees benefit from the company’s bespoke industry specific management system, which takes bookings centrally and schedules them with the relevant franchisee by accessing their individual diaries to ensure they are available to carry out the work.

In addition, customers have access to the Junk Hunters online booking system, which works in a similar way to the franchise’s central management system and allows customers to go online and book a pick up even when the central office is unmanned.

Customer billing is carried out centrally and most jobs are paid for at the time of collection. By doing this, Junk Hunters ensures that franchisees have no problems with credit control or cash flow.

All franchisees work in trading territories that are exclusive to them. According to Junk Hunters, most high street banks will consider lending franchisees approximately 50 per cent of the start-up costs. As already stated, NatWest will consider lending up to 70 per cent, allowing you to get up and running as a Junk Hunters franchisee for an initial personal investment of around £18,000.

No previous experience of running your own business is necessary to become a Junk Hunters franchisee. However, franchisees must be hard-working, be able to follow a proven system and be determined to run their own successful business.

 

What locations or territories is Junk Hunters looking to operate in?

The company has franchise opportunities available throughout the UK.

 

Where in the UK is the Junk Hunters franchise based?

The company’s UK headquarters is in Willesden, north London.

 

What training and support do Junk Hunters franchisees receive?

Training begins with an induction course at the company’s London offices and in the franchisee’s chosen territory. All aspects of running a business in the waste removal and recycling sector are covered, including how to set up a limited company, how the franchise system works, administering the business and sales and marketing techniques.

Also, as part of the initial training the prospective franchisee will work alongside an established Junk Hunters team on the road in order to gain first-hand experience of what the franchise entails.

Support is provided throughout the duration of the franchise agreement and is tailored to a franchisee’s requirements. It starts with a local advertising and launch PR campaign to raise the profile of a franchisee’s business in their territory.

As part of the franchise package, Junk Hunters will arrange a highly branded, purpose built vehicle, which can be acquired either on a lease basis or purchased outright; a comprehensive tool kit; branded workwear; a quantity of stationery and marketing materials; a web page; and an operations manual, which sets out in detail all the procedures necessary to run the business.

 

What are the Junk Hunters franchise’s terms of agreement and renewal?

The initial franchise agreement is for a five-year period and grants a franchisee access to all Junk Hunters’ systems and know-how and the right to operate using the company’s branding in an exclusive territory.

Franchisees also have an automatic right to renew the franchise agreement for a further two five-year terms, assuming there have been no material breaches of the agreement.

What ongoing fees does Junk Hunters charge its franchisees?

The company’s management service fee is 10 per cent of a franchisee’s gross turnover, while its marketing levy is currently one per cent of gross turnover.

 

What’s the earnings potential of the Junk Hunters franchise?

The company’s guide to potential earnings is based on a franchisee operating a single vehicle. It quotes:

• Year one net sales: £137,000. Gross profit: £72,000.

• Year three net sales: £339,000. Gross profit: £171,000.

• Year five net sale: £507,000. Gross profit: £278,000.

 

How in demand are the services provided by Junk Hunters?

As individuals going about their everyday lives and established commercial processes generate waste of all types, a business such as Junk Hunters, which offers a cost effective means of removal, disposal and recycling, is a valuable asset to most UK communities.

While steps are being taken to reduce the 202m tons of domestic and commercial waste produced in the UK every year, there were 936,000 reported incidents of fly tipping in 2015-16 that had to be dealt with by local authorities, which collectively spend £2.8bn annually on outsourced waste services.

Another area of the Junk Hunters business - recycling - is also becoming more popular. Domestic recycling rocketed 235 per cent between 2000 and 2010 and, according to the Department for Environment, Food & Rural Affairs, household waste recycling stood at 44.3 per cent in 2015. The target for household recycling for the UK as a whole has been set at 50 per cent by 2020.

 

How can I get started on setting up my own Junk Hunters business?

After contacting the company, you can book a place on a Junk Hunters discovery day, which takes place at its headquarters. Here you’ll meet the franchisor and be able to ask any questions you have about the business. You’ll also be provided with further information on the franchise opportunity on offer.

Your due diligence will continue by reviewing the franchise agreement and speaking to existing Junk Hunters franchisees about the business. Throughout the process, Junk Hunters will be assessing your suitability to join the franchise network.

A deposit to secure your territory will then be required and once finance has been agreed, you’ll sign the franchise agreement and agree a start date for initial training.

To find out more or to request further information on franchising with Junk Hunters, click the ‘Send Enquiry’ button now.

Interested in this franchise opportunity?

For additional information on Junk Hunters, simply send us an !

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