Layer8 Franchise Evaluation Suite  |  Franchise Opportunity Evaluation
College Hunks Hauling Junk & Moving
Junk Removal / Moving Services
Assessment Date: May 01, 2026
7.05
ADEQUATE
out of 10.00  |  8 domains  |  40 criteria
▶ Layer8 Recommendation: BUY
Total Investment
$157,000 – $293,000
Franchise Fee
$60,000
Royalty Structure
7.0% of revenue
FDD Currency: Current — 2024 FDD (14 months old). Data reflects current franchise system.   Source: Public Registry  ·  ● Provenance unverified
§ 2   Item 19 Financial Performance Status
Item 19 DISCLOSED   Full Disclosure (Revenue + Expenses + Profit)  |  Quality: ★★★★☆ (4/5)
Strong disclosure — full revenue and profit data available.
FY 2023  ·  98 units (68% of system)  ·  quartile breakdown included
Avg Unit Revenue
$1,240,000
Item 19 Disclosed
Profit Margin
12.0%
Avg profit: $148,800
Est. Payback
11.8 yrs
Based on disclosed data
§ 3   Executive Summary

College Hunks Hauling Junk & Moving scores 7.05/10 (ADEQUATE), indicating a solid franchise opportunity with generally positive fundamentals and specific areas that merit closer review before committing.

The strongest dimension is Market & Competitive Position (7.6/10), which represents the primary driver of investment confidence for this opportunity. The dimension with the most room for improvement is Exit & Transfer Provisions (6.4/10), which warrants careful review while not representing a material barrier to investment.

Investment thesis: The College Hunks Hauling Junk & Moving franchise discloses a 11.8-year estimated payback on a $157,000–$293,000 investment, backed by Item 19 financial data — providing a verifiable basis for investment modeling that many competing franchises do not offer.

§ 4   Domain Risk Register
Market & Competitive Position
7% 7.6  ADEQUATE
How competitive is the franchise category and where does this brand rank within it?
CriterionScore FindingImplication
Brand Recognition & Strength 8 Brand ranked #2 in category by system size and consumer awareness. Strong recognition reduces customer acquisition costs significantly.
Category Growth Trend 10 Category growing at approximately 7.8% annually. Strong category tailwinds provide favorable entry conditions.
Competitive Differentiation 6 Competitive differentiation assessed via brand position (#2) and proprietary model characteristics. Limited differentiation; competing on location convenience or price in a crowded field.
Market Saturation Risk 8 System size: 165 total units; saturation risk assessed against category penetration. Low saturation provides strong territory availability across most markets.
Recession Resistance 6 Recession resistance assessed based on category spending behavior in economic downturns. Some consumer spending sensitivity; maintain adequate operating reserves.
Market position is adequate. Brand rank #2 provides reasonable recognition, but the competitive landscape requires careful territory analysis. Category growth of 7.8% annually supports the long-term investment thesis.
FDD Quality & Transparency
15% 7.5  ADEQUATE
Quality and completeness of FDD disclosure — the most important signal of franchisor integrity. Item 19 is scored at double weight.
CriterionScore FindingImplication
Item 19 Financial Performance Disclosure 8 Item 19 present (FULL): $1,240,000 avg revenue, 12.0% margin. Disclosure quality: 4/5, 98 units sampled. Strong financial data provides a solid basis for investment underwriting.
FDD Completeness & Clarity 8 18 years franchising; Item 21 financials: audited. Long history + audited financials = high FDD credibility.
Litigation History (Items 3 & 4) 7 3 matter(s); minor severity. Auto-flags: REGULATORY. Weighted scoring applied. Flagged categories carry elevated weight — validate with Item 20 franchisee contacts before proceeding.
Franchisee Contact Transparency (Item 20) 7 Item 20 covers 165 total franchise units with contact information. Contact at least 10 current franchisees directly using Item 20 list.
Material Change Disclosure 7 System growing (+28 net units over 3 years); FDD stability signal. Stable/growing system — no material adverse changes indicated.
FDD quality is adequate with room for improvement. Review all 23 FDD items carefully with a qualified franchise attorney before making any commitment. Pay particular attention to Items 7, 19, and 20.
Unit Economics
25% 7.2  ADEQUATE
Financial viability of a single franchise unit — the core investment thesis. Highest-weighted domain.
CriterionScore FindingImplication
Average Unit Volume (AUV) 10 $1,240,000 avg revenue vs. $225,000 mid-point investment (ratio: 5.51×). Extraordinary revenue-to-investment ratio; exceptional capital efficiency.
Payback Period 8 Estimated payback: 11.8 years (based on disclosed Item 19 data). 8–12 year payback is competitive.
Profit Margin 6 12.0% average profit margin disclosed in Item 19. 10–15% margin is adequate with limited buffer for below-average performance.
Fee Structure Competitiveness 4 Royalty: 7.0% of gross revenue. High or undisclosed royalty structure requires detailed cost modeling.
Investment Range & Clarity 8 Investment range: $157,000 – $293,000 ($136,000 spread). Reasonable spread; request detailed Item 7 cost breakdown.
Unit economics are adequate but leave limited margin for error. A 11.8-year payback requires a long holding period — ensure your capital planning accounts for at least 2 years of operating losses before breakeven.
Franchisor Financial Health
15% 7.0  ADEQUATE
Financial stability and growth trajectory of the franchisor — are they a going concern with a growing system?
CriterionScore FindingImplication
Financial Statement Quality (Item 21) 9 Item 21: audited; franchisor profitable. Audited + profitable financials confirm franchisor as a stable going concern.
System Size & Growth Trajectory 9 System growing: +28 net units over 3 years (~5.7%/yr annualized). Strong growth signals healthy demand and franchisor execution.
Company-Owned vs Franchised Ratio 3 0 company-owned unit(s) (0.0% of system). No company-owned units means franchisor is untested in their own model.
Franchisor Support Infrastructure 6 1 week(s) initial training; franchisee satisfaction score: 7.4/10. Training meets minimum standards; ask franchisees specifically about post-opening support.
Ownership & Leadership Stability 8 18 years franchising history; ownership and leadership continuity relevant to long-term reliability. Long-tenured ownership provides system stability and deep category expertise.
Franchisor health is adequate. The growing system (+28 net units) warrants monitoring. Verify that support staffing has scaled proportionally with system size.
Candidate Fit Assessment
5% 7.0  ADEQUATE
How well does this opportunity match a typical buyer's profile — skills, capital, and lifestyle expectations?
CriterionScore FindingImplication
Owner Involvement Required 5 Semi-absentee model: no — owner-operator involvement required. Full-time owner required; factor daily operational demands into your decision.
Prior Experience Required 8 Prior industry experience not required; franchise training program provides foundational operational knowledge. Open candidate profile broadens buyer pool and reduces qualification barriers.
Capital Requirements Accessibility 7 Investment: $157,000–$293,000 (midpoint $225,000); SBA financing eligibility varies by location and credit profile. Accessible for qualified buyers with modest liquidity; SBA-eligible.
Lifestyle Compatibility 8 Lifestyle compatibility based on operational hours, owner involvement intensity, and schedule demands. Lifestyle-compatible operation; does not require nights, weekends, or 24/7 availability.
Scalability to Multi-Unit 7 28% of franchisees operate multiple units; area development options available. Multi-unit growth possible with franchisor approval; ask about area development terms.
Candidate fit is adequate for buyers with the right profile. The $157,000–$293,000 investment range and operational requirements limit the buyer universe somewhat; ensure honest self-assessment before proceeding.
Franchisee Satisfaction & Support
15% 6.8  ADEQUATE
How do current and former franchisees rate their experience? The most honest signal in any FDD evaluation.
CriterionScore FindingImplication
Franchisee Satisfaction Scores 7 Franchisee satisfaction index: 7.4/10 based on published survey and review data. Mixed satisfaction; interview current franchisees directly about specific concerns.
Former Franchisee Attrition Rate 6 Annual franchisee attrition: 5.2% (industry average ~5–7%). Near-average attrition; ask franchisees why peers are choosing to exit.
Training Quality & Completeness 6 Initial training: 1 week(s). Ongoing support via field visits and franchisee advisory programs. Limited training requires strong self-sufficiency; plan for extended ramp-up.
Technology & Systems Support 8 Technology and systems: brand #2 in category; satisfaction 7.4/10 used as quality proxy. Strong technology platform — should not be a day-1 operational burden.
Marketing Support Effectiveness 7 Marketing fund effectiveness: #2 brand in category; national advertising fund allocation relevant to franchisee ROI. Adequate marketing; ask franchisees for specific lead-generation ROI data.
Franchisee satisfaction is mixed. The 7.4/10 satisfaction index and 5.2% attrition rate are near industry average. Conduct direct interviews with at least 10 current franchisees to understand specific support quality and any recurring concerns.
Territorial Rights & Protection
10% 6.6  ADEQUATE
Quality of territorial protection — can the franchisor open a competitor next door or sell online in your market?
CriterionScore FindingImplication
Territory Definition & Protection 7 Territory exclusivity and definition: adequate protection with some limitations to review. Review territory carve-outs carefully in the franchise agreement.
Territory Size & Population 7 Territory size and addressable population: adequate protection with some limitations to review. Review territory carve-outs carefully in the franchise agreement.
Online & Alternative Channel Rights 6 Online and alternative channel rights: adequate protection with some limitations to review. Review territory carve-outs carefully in the franchise agreement.
Right of First Refusal for Expansion 6 Right of first refusal for expansion: adequate protection with some limitations to review. Review territory carve-outs carefully in the franchise agreement.
Territory Encroachment History 7 Territory encroachment history: adequate protection with some limitations to review. Review territory carve-outs carefully in the franchise agreement.
Territorial rights are adequate but warrant careful legal review. Understand all carve-outs, alternative channel rights, and the specific enforcement mechanism before signing the franchise agreement.
Exit & Transfer Provisions
8% 6.4  ADEQUATE
How easily can a franchisee exit — transfer, sell, or close? Poor exit terms are a silent risk most buyers ignore.
CriterionScore FindingImplication
Transfer Rights & Fees 7 Transfer rights and fees: standard terms; review franchise agreement language carefully. Standard terms are acceptable; confirm transfer fees and cure period lengths.
Renewal Terms & Conditions 7 Renewal terms and conditions: standard terms; review franchise agreement language carefully. Standard terms are acceptable; confirm transfer fees and cure period lengths.
Termination Provisions 6 Termination provisions and cure periods: standard terms; review franchise agreement language carefully. Standard terms are acceptable; confirm transfer fees and cure period lengths.
Post-Term Non-Compete 6 Post-term non-compete scope: standard terms; review franchise agreement language carefully. Standard terms are acceptable; confirm transfer fees and cure period lengths.
Dispute Resolution 6 Dispute resolution process: standard terms; review franchise agreement language carefully. Standard terms are acceptable; confirm transfer fees and cure period lengths.
Exit provisions are standard. Confirm key terms including transfer fees, cure period lengths, and renewal conditions with a franchise attorney before signing. Standard terms are acceptable but should be fully understood.
§ 5   FDD Item Analysis
Item 5 — Fees
Fee ComponentAmountLayer8 Commentary
Initial Franchise Fee $60,000 ■ One-time fee due at signing; $60,000 is above the typical $35K–$55K category range
Ongoing Royalty 7.0% of revenue ⚠ Above category average — model total fee impact
Royalty Note 7% of gross revenue — above category average
Marketing Fee 2% national + 2% local = 4% total ■ 2% national + 2% local = 4% total
Item 7 — Estimated Initial Investment
Investment ComponentAmountLayer8 Commentary
Investment Range (Total) $157,000 – $293,000 ✅ Below category average — accessible entry point
Midpoint Investment $225,000 ■ Category average: $350,000 — use midpoint for base-case financial modeling
Range Spread $136,000 (87%) ✅ Narrow spread — good cost predictability
Item 19 — Financial Performance Representations
MetricDisclosed DataLayer8 Commentary
Average Unit Revenue$1,240,000✅ Franchisor-verified figure
Average Profit Margin12.0%■ Adequate margin
Average Profit$148,800■ Disclosed in Item 19
Item 20 — Franchisee Information
MetricDataLayer8 Commentary
Total System Units 165 (165 franchised, 0 co-owned) ■ System size indicates franchisor maturity and infrastructure investment
Net Unit Change (3yr) +28 ✅ Growing system — positive demand signal
Annual Attrition Rate 5.2% ■ Near industry average — monitor over time
Items 3 & 4 — Litigation & Bankruptcy  Categorized — weighted scoring applied
REGULATORY: Regulatory Action Identified
Government or regulatory action indicates compliance issues beyond ordinary business risk. Review the specific matter carefully.
Category Count Severity Weight Weighted Impact
Franchisee vs Franchisor 0 2.0× 0
Class Action 0 2.5× 0
Regulatory / Government 2 Minor 1.5× 3.0
   Two employment classification matters, both resolved — common in service businesses with hourly workforce
Third-Party Claims 1 Minor 1.0× 1.0
   One minor commercial dispute, resolved
Intellectual Property 0 1.0× 0
Bankruptcy HistoryNone✅ No bankruptcy history disclosed
Employment classification matters typical for labor-intensive service businesses — both resolved
§ 6   Red Flags
Items Requiring Attention Before Signing — 2 criterion/criteria scored below 5.0
The following items scored below 5.0 and represent material risks that should be investigated and resolved before making an investment decision. These are not necessarily deal-breakers, but they require specific answers from the franchisor and/or existing franchisees.
FH_03 Company-Owned vs Franchised Ratio 3/10
▸ 0 company-owned unit(s) (0.0% of system).
📌 Recommended action: No company-owned units means franchisor is untested in their own model.
UE_04 Fee Structure Competitiveness 4/10
▸ Royalty: 7.0% of gross revenue.
📌 Recommended action: High or undisclosed royalty structure requires detailed cost modeling.
§ 7   Questions to Ask the Franchisor

The following questions are tailored to College Hunks Hauling Junk & Moving's specific FDD profile, scoring, and category. Use these in your franchisor discovery call and in direct conversations with existing franchisees via Item 20 contacts.

Financial Questions
1
What percentage of franchisees achieve or exceed the $1,240,000 average unit revenue disclosed in Item 19?
Why this matters: Averages can be skewed by top performers. Understanding the distribution — what percentage hit average — gives a more realistic basis for financial planning.
2
What is the total monthly fee obligation — royalty, marketing, technology, and other fees — for a unit doing $200K, $400K, and $600K annually?
Why this matters: The 7.0% royalty is one component. Modeling the total fee stack across performance scenarios reveals the true impact on unit profitability.
3
What are the primary reasons franchisees have exited the system in the past 3 years, and what were the financial outcomes for those who left?
Why this matters: The 5.2% annual attrition rate is above the ~5% industry average. Understanding exit reasons reveals whether the economics are viable at the unit level.
4
What is the typical breakeven timeline for a new unit, and what cash reserve do you recommend franchisees maintain in Year 1?
Why this matters: Pre-breakeven cash requirements are often understated in Item 7. Understanding actual early-stage cash burn prevents working capital shortfalls in the critical first year.
Operations Questions
1
Beyond the 1-week initial training, what ongoing training, field support visits, and skill development is provided?
Why this matters: Limited initial training increases dependence on ongoing support. Understanding the full training roadmap reveals whether the franchisor has a comprehensive development program.
2
What technology platforms do franchisees use day-to-day — POS, scheduling, CRM, reporting — and what are the monthly technology costs?
Why this matters: Technology costs are frequently underrepresented in Item 7 investment estimates. For a $157,000–$293,000 investment, ongoing SaaS costs of $500–$1,500/month are significant.
3
How many dedicated franchise support staff are there, what is the franchisor-to-franchisee ratio, and what is the typical response time for operational issues?
Why this matters: With 165 units in the system, support staff ratios reveal whether the franchisor has invested proportionally in franchisee success infrastructure.
Support & Territory Questions
1
Can you provide examples of how territorial disputes have been resolved in the past, and what recourse does a franchisee have if encroachment occurs?
Why this matters: Even strong territorial definitions can be inadequately enforced. Understanding the dispute resolution track record reveals the franchisor's commitment to territorial integrity.
2
What is the transfer process if I want to sell my franchise in 5–10 years, what is the transfer fee, and does the franchisor have right of first refusal?
Why this matters: Your exit determines your realized return. The transfer fee, approval process, and ROFR terms set the terms of your eventual liquidity — often more important than entry terms for a $157,000–$293,000 investment.
3
How many disputes were filed between franchisees and the franchisor in the past 3 years, and how were they resolved?
Why this matters: Dispute frequency and resolution quality are leading indicators of the actual working relationship between franchisor and franchisee network — not the relationship described in marketing materials.
§ 8   Investment Scenario Analysis

Based on Item 19 disclosed data. Investment midpoint used: $225,000 ($157,000–$293,000 range). Profit calculated at 12.0% disclosed margin. Scenarios reflect unit revenue at different performance percentiles.

Scenario Annual Revenue Estimated Profit Payback Period Est. Monthly Cash Flow
Conservative
25th percentile performance — 80% of average unit volume
$992,000 $119,040
12.0% margin
1.9 yrs $9,920
Base Case
Median performance — average unit volume as disclosed
$1,240,000 $148,800
12.0% margin
1.5 yrs $12,400
Optimistic
75th percentile performance — 120% of average unit volume
$1,488,000 $178,560
12.0% margin
1.3 yrs $14,880

⚠ Scenario analysis is illustrative only. Actual results vary by location, market, operator experience, and local competition. All figures are pre-debt service and pre-owner compensation. Consult a financial advisor and conduct independent market analysis before making any investment decision.

§ 9   Category Comparable Context

How College Hunks Hauling Junk & Moving compares to typical franchises in its category: Junk Removal / Moving Services. Category averages are based on published industry research and Layer8 benchmark data.

Metric College Hunks Hauling Junk & Moving Category Average Comparison
Total Investment (midpoint) $225,000 $350,000 ✅ Better
Royalty Structure 7.0% of revenue Category avg: 6.0% ⚠ Worse
Annual Franchisee Attrition 5.2% 6.0% ■ Similar
Item 19 Disclosure Yes — provided ~50% of franchisors provide it ✅ Better
Years Franchising 18 years Category typically 8–15 yrs ✅ Better — proven long track record
§ 10   External Ratings & Industry Recognition
Rating Source Grade / Score What It Measures Notes
FranchiseGrade B (7.1/10) FDD-based quantitative analysis Solid grade — strong AUV, higher royalty noted  franchisegrade.com ↗
FBR / FSI ★★★½ (3.8)
NPS +34
Franchisee survey & Net Promoter Score Good satisfaction — culture and brand strength cited
FRANdata SBA lender underwriting data Subscription required
Franchise Update #68 in annual rankings Lead generation & growth focus Ranked in annual list
Layer8 scoring is independent of these systems and uses a different methodology. Differences reflect our emphasis on FDD transparency quality, litigation categorization, and FDD currency. Where Layer8 scores differ materially from external grades, the specific drivers are noted in the domain analysis above.
§ 11   Beyond the FDD — What the Data Can't Tell You

The FDD provides the structural framework for evaluating a franchise opportunity. But experienced franchise consultants know that the most important signals come from outside the document:

Validation Calls with Current Franchisees
Item 20 lists every current and former franchisee with contact information. Speaking with 5–10 current owners — especially those in similar markets — reveals operational realities the FDD cannot capture: actual support quality, real unit economics, and whether the franchisor delivers on its promises.

Former Franchisee Conversations
Item 20 also lists terminated and non-renewed franchisees. These conversations are often the most revealing. Why did they leave? Was it performance, support, or systemic issues?

Discovery Day
Most franchisors offer a Discovery Day — a visit to headquarters to meet the leadership team. The quality of this experience is a meaningful signal of the franchisor's operational maturity and culture.

The Item 19 Reality Check
Even disclosed Item 19 data has limitations — it reflects system-wide averages, not your specific territory. Ask existing franchisees in comparable markets what their actual unit economics look like.

Layer8 scoring surfaces the structural signals from the FDD. Your franchise consultant interprets what those signals mean for your specific situation.

§ 12   Recommended Next Steps

Action items based on Layer8 recommendation: BUY for College Hunks Hauling Junk & Moving (7.05/10).

1
Request the current FDD directly from the franchisor
The current-year FDD supersedes any marketing materials or prior versions. Request it in writing and confirm the date of registration in your state.
2
Contact 5+ current franchisees from the Item 20 contact list
Ask specifically about Year 1 revenue vs. expectations, quality of franchisor support, and what they would do differently. Also contact 2–3 former franchisees listed in Item 20.
3
Engage a qualified franchise attorney for full FDD review
Budget $2,500–$5,000 for an attorney with franchise-specific experience. Have them review the franchise agreement for renewal terms, transfer restrictions, and termination clauses specifically.