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DumpStor

DumpStor Franchising, LLC
https://www.dumpstor.com
1-877-737-3867
42255 Mercure Circle, #120, Sterling, VA 20166
FDD Version:

How much does DumpStor cost?

Initial Investment Range

$114,335 to $519,350

Franchise Fee

$58,950 to $61,350

DumpStor Franchising, LLC d/b/a DumpStor offers franchisees the opportunity to operate a dumpster and job-site storage rental business utilizing a patent pending combined dumpster and storage container, enclosed containers, and open top containers.

Enjoy our partial free risk analysis below

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DumpStor March 28, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
1
4
5

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

The franchisor's audited financial statements for 2024 show profitability and positive equity. However, a significant risk factor is that 36% of its total revenue is derived from rebates on required purchases you must make from designated suppliers. This heavy reliance on supplier-related income, rather than royalties, could present a stability risk if that revenue stream is disrupted. Additionally, the Maryland state regulator has required financial assurances, signaling some concern over the franchisor's financial condition.

Potential Mitigations

  • Your accountant should analyze the franchisor's revenue sources to assess the sustainability of its business model.
  • Discuss the implications of the high reliance on supplier rebates with a business advisor to understand the potential impact on your costs.
  • An experienced franchise attorney can explain the practical effects of any state-mandated financial assurances like fee deferrals.
Citations: Item 8, Item 21, Exhibit A, Maryland Addendum (Exhibit J)

High Franchisee Turnover

Medium Risk

Explanation

In 2023, with a base of 10 franchised outlets, one was reacquired by the franchisor. In 2024, with a base of 16 outlets, one ceased operations for other reasons. While not alarmingly high in absolute numbers, any turnover in a small and young franchise system can be a sign of potential issues with franchisee success or satisfaction. You should investigate the specific reasons for these departures to better assess the health of the system.

Potential Mitigations

  • It is critical to contact former franchisees listed in Item 20 to understand their reasons for leaving the system; your attorney can help formulate questions.
  • A business advisor can help you analyze the turnover rate in the context of the system's age and the industry.
  • Ask the franchisor for a detailed explanation of the circumstances surrounding each reacquisition, closure, or transfer.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

The system has grown from zero franchised outlets at the start of 2022 to 16 by the end of 2024. For a new franchisor, this represents very rapid growth. Such expansion can sometimes strain a franchisor's ability to provide adequate and timely training, site selection assistance, and ongoing operational support to all franchisees. You should verify that the support infrastructure has kept pace with unit growth.

Potential Mitigations

  • A business advisor can help you assess whether the franchisor's support staff and systems are adequate for the current number of franchisees.
  • Question a wide range of existing franchisees about the current quality and responsiveness of the franchisor's support.
  • In discussions with the franchisor, ask about their specific plans for scaling support infrastructure to match continued growth.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

DumpStor Franchising, LLC (DumpStor) was formed in August 2021 and began offering franchises in October 2021. As a very new and developing franchise system, it lacks a long-term track record of supporting franchisees. This presents a higher level of risk regarding the long-term viability of the business model, the effectiveness of its support systems, and the ultimate success of its franchisees. An affiliate's longer operating history in the industry does not fully mitigate this franchising-specific risk.

Potential Mitigations

  • Conducting extensive due diligence by speaking with the earliest franchisees is crucial; a business advisor can help guide your research.
  • Your accountant should perform a thorough analysis of the franchisor's capitalization to assess its ability to fund its growth and support obligations.
  • Given the higher risk, you could have your attorney attempt to negotiate more favorable terms, such as enhanced support commitments or better protections.
Citations: Item 1, Item 2, Item 20

Possible Fad Business

Low Risk

Explanation

The franchised business is the operation of a dumpster and job-site storage rental service. This is a well-established sector tied to the construction, remodeling, and property maintenance industries. The business model does not appear to be based on a short-term fad or trend, suggesting a more stable market demand.

Potential Mitigations

  • Engage a business advisor to research the long-term demand for dumpster rental services in your specific local market.
  • You should still develop a business plan with your accountant that accounts for the cyclical nature of the construction industry.
  • Investigate the local competitive landscape with your business advisor to ensure there is sufficient market opportunity.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

The franchisor's executives have prior experience in the waste disposal industry through an affiliated company. However, their experience specifically in managing a franchise system is limited to the period since late 2021. While industry experience is valuable, a lack of a long track record in franchising can present risks related to the development of support systems, training programs, and managing franchisee relations. The franchisor's ability to effectively scale its support may be unproven.

Potential Mitigations

  • A business advisor can help you vet the management team's background, focusing on their specific experience in managing a franchise network.
  • Speaking with current franchisees about the quality of support and management's understanding of their needs is essential.
  • Directly ask the franchisor how they have addressed the learning curve of becoming a franchisor and what resources they use for franchise management expertise.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. Private equity ownership can be a concern if the firm's focus on short-term returns leads to decisions that are not in the long-term best interest of franchisees, such as cutting support or increasing fees. The documents indicate the franchisor is founder-led.

Potential Mitigations

  • Your attorney can help you verify the ownership structure disclosed in Item 1 through public records.
  • Always ask your business advisor to research the track record of any parent company or controlling entity of a franchisor.
Citations: Item 1

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. The franchisor discloses its key affiliates in Item 1, including the entity that owns the trademarks. The franchisor itself provides audited financial statements, and there is no indication of a parent company whose financials would be required for a complete risk assessment. The disclosures appear to be compliant.

Potential Mitigations

  • Have your accountant confirm that the provided financial statements are for the correct legal entity offering the franchise.
  • Your attorney should verify that all relevant affiliated entities and their roles are clearly disclosed in Item 1.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 does not list any predecessors, as the franchisor is a new legal entity that started franchising in 2021. Therefore, there is no risk of hidden negative history from a prior version of the company.

Potential Mitigations

  • Your attorney can confirm the franchisor's formation date and history to verify the information in Item 1.
  • Even without predecessors, consulting with a business advisor to research the industry track record of the key individuals in Item 2 remains a valuable step.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 3 states that there is no litigation that is required to be disclosed. This lack of significant legal disputes against the franchisor can be a positive indicator, suggesting a lower level of conflict with franchisees or regulators to date.

Potential Mitigations

  • An attorney can perform an independent public records search to confirm the absence of litigation not disclosed in Item 3.
  • You should still ask current franchisees about any informal disputes or disagreements they have had with the franchisor.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
3
6
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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3

Financial & Fee Risks

Total: 10
2
5
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
9
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
3
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
1
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
7
4
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
11
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.