Junk King
Formerly known as Yeung's Lotus Express
Bottom line
- Total investment $121K – $236K including a $55K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $554K/year (median $436K).
- Rated MODERATE with a risk score of 58/100. SBA loan default rate of 0.0% across 104 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Junk King unit return on the cash you put in?
Unlevered ROIC · per unit
61%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Junk King units return on equity?
Equity IRR · 5-yr
41.8%
5.73× MOIC
Year-1 DSCR
2.06×
EBITDA ÷ debt service
Equity required
$3.1M
on $11.6M purchase
Total debt
$8.5M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 58 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
65 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Junk King · FDD (2026) PDF