Junk KingFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Junk King franchise requires a total initial investment of $121K – $236K, including a $55K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $554K[2]. SBA 7(a) loans show a 6.5% charge-off rate across 66 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $121K – $236K
- 23rd pct Health & Fitn…
- Avg gross sales
- $554K
- 31st pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 172
- 87th pct Health & Fitn…
- SBA default
- 6.5%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.1x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $121K – $236K including a $55K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $554K/year (median $436K).
- Verdict F (Bottom Quintile) with a risk score of 80/100. SBA loan charge-off rate of 6.5% across 66 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- JUNK KING SPV LLC
- Parent company
- Neighborly Assetco LLC
- Incorporated in
- DE
- HQ
- 1010 North University Parks Drive, Waco, TX 76707
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $452K
- vs $462K prior year
Overview
About
Junk King franchisees operate residential and commercial junk removal services, managing customer scheduling, pickup logistics, and disposal operations. Day-to-day activities include leading crews to haul unwanted items, coordinating marketing efforts, managing customer relationships, and overseeing vehicle and equipment maintenance across their protected territory.
- CEO
- Michael Anthony Davis
- Headquarters
- TX
- Founded
- 2005
- FDD year
- 2026
- States available
- 36
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $50K | $104K |
| Equipment, build-out, other | $16K | $78K |
| Total initial investment | $121K | $236K |
Source: Junk King 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$155K
28.0% margin
Unlevered ROIC
61%
EBITDA / total invested capital
Payback
20 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $121K – $236K
- Better than avg vs category
- Liquid capital req'd
- $50K – $104K
- Below avg, review vs category
- Franchise fee
- $55K – $77K
- Below avg, review vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $159 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $554K
- Per unit, per year
- Median gross sales
- $436K
- Item 19 type
- gross_sales
- Sample size
- 166 units
- vs category median 11 · large
- Range (low → high)
- $81K→$2.8M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Junk King Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 172
- Opened
- 9
- Last reporting year
- Closed
- 6
- Turnover rate
- 3.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.8%
- Net unit change last year
- 3-yr CAGR
- +8.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 31
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 36 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 66
- Loan volume
- $15.0M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 6.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 93.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 28
- Defaults
- 2
Vintage analysis
Junk King charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Junk King's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 14-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Junk King presents HIGH RISK due to going concern status, litigation pattern involving fraud allegations, minimal unit growth, and lack of net income disclosure, making profitability claims unverifiable.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 80 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability at corporate level
- 02MINORSystem is shrinking: only 1.8% YoY growth with 172 units suggests stalled expansion and possible closures
- 03HIGHMultiple litigation cases with fraud/misrepresentation allegations and settlements indicate pattern of franchisor-franchisee disputes
- 04MEDNet Income not disclosed in Item 19 — prevents validation of $553,959 average revenue claim and true profitability
- 05MINORHigh initial investment ($121,200–$236,000) with 8% royalty creates breakeven pressure in declining system
- 06MINORHistory of franchisor territorial repurchases suggests franchisee underperformance or franchisor buyback strategy to recover units
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 16 hrs
- POS system
- JunkWare
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: JunkWare
Item 20 · call current owners
Franchisee Contacts
131 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Junk King · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Junk King franchise?
The total investment to open a Junk King franchise ranges from $121K – $236K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Junk King franchise owners earn?
According to Item 19 of the Junk King FDD, the average gross sales per unit is $554K. The median is $436K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Junk King's franchise failure rate?
Based on SBA 7(a) loan data, Junk King has a charge-off rate of 6.5% across 66 loans, meaning 6.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Junk King franchise locations are there?
As of their most recent FDD filing, Junk King has 172 total units in the United States, including 158 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is Junk King a good franchise to buy?
FranchiseVerdict rates Junk King as a F-grade franchise with a risk score of 80 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.