Making the Purchase and Developing the Business A lot of franchises, once they get to a certain point, just stop evolving. They spoke very favorably about the company, its mission, and its leadership.Īnother thing that impressed him about The Junkluggers was that they are constantly evolving their business model. They let him know running a Junkluggers franchise was going to take a lot of work, but you also had the opportunity to be very successful. “Part of my work involved modeling out all the business’s financials, so I understand what the revenue generation and costs of a franchise look like.”Īll the franchisees that Siegel contacted were very supportive, yet honest. “I've read about 40 FDDs from various franchisors cover to cover, which is more than many franchise brokers,” he said. He reviewed The Junkluggers FDD (Franchise Disclosure Document) and when it came time to conducting due diligence, Siegel was very thorough- even making about 20 to 30 validation calls to franchisees. With the experience Siegel had gained while working for BRIX Holdings, a multi-brand franchise company that owns Red Mango Frozen Yogurt and Souper Salads, among others, he was very familiar with the franchise industry. Between the number of people moving in and out and businesses turning over, there's a steady demand for having furniture and equipment hauled away. The junk hauling business isn’t necessarily affected by a recession either. “I'm dealing with seniors who are downsizing before moving into assisted living facilities, companies that are moving their offices and trying to get rid of furniture and filing cabinets, or parents turning their kid’s room into a gym once they are out of the house.” They're about bringing you more stuff, not removing it,” he said. “I doubt that any major retailers are going to get into the junk-hauling business anytime soon. Plus, The Junkluggers business model fit Siegel’s vetting criteria. He explains their process: “When we pick things up, the first option is always, ‘how do we donate it?’ If a donation center doesn't want it, is it recyclable? If not, ‘is it up-cyclable?’ Meaning, ‘can we refurbish it and then re-sell it, donating a portion of the proceeds to a local charity?’ Our very last option is taking it to the landfill.” In a way, The Junkluggers was part of who he was. Siegel has always been mindful about finding ways to reuse things. Additionally, he was very excited about their focus on donating collected items to local charities that served the community. He found their eco-friendly concept and focus on landfill diversion very appealing. Then one day he was introduced by a franchise broker (Ted Hooten) to The Junkluggers, a furniture and junk removal franchise. I really enjoy running business processes.” “I would get up at 6AM on a Saturday and run through them on Excel. With his extensive background in business strategy, he knew to do thorough research, ask detailed questions and crunch the numbers. But I have rules when reviewing a business - I want it to be major retailer/e-commerce-proof, I want it to be recession-resistant, and have a positive impact on the community”, Siegel said. “I was looking for that shiny object, something that stood out, that diamond in the rough.
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