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Mobiledumps
How much does Mobiledumps cost?
Initial Investment Range
$61,640 to $210,100
Franchise Fee
$30,100 to $30,500
We offer franchises for a mobile dumpster service that allows residential and commercial customers to schedule Mobiledumps, our proprietary dumpster, through our website and use of the business management system and using 'Mobiledumps' and related trademarks.
Enjoy our partial free risk analysis below
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Mobiledumps June 27, 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor, Mobiledumps Franchising, LLC (Mobiledumps), is in a precarious financial position. The 2024 audited financial statements reveal a net loss of over $314,000 on revenue of $347,000 and a negative members' equity of ($93,433). This indicates the company is spending far more than it earns and is technically insolvent. Such financial weakness, also flagged as a "Special Risk" by the franchisor, questions its ability to support you or even remain in business.
Potential Mitigations
- A franchise accountant must review the complete financial statements, including all notes, to assess the franchisor's viability and reliance on new franchise fees.
- Understanding the implications of a franchisor's potential insolvency on your investment requires detailed discussion with your franchise attorney.
- Your business advisor should help you develop contingency plans in case franchisor support diminishes or ceases due to these financial issues.
High Franchisee Turnover
Medium Risk
Explanation
Item 20 data from 2024 indicates two franchised outlets "Ceased Operations for Other Reasons" out of a system of approximately 29 units. This represents a notable annual churn rate of about 7%. Furthermore, a footnote in Exhibit F states that an unspecified number of additional franchisees closed in the first quarter of 2025. This pattern of closures may suggest underlying challenges with the business model or franchisee profitability that warrant further investigation.
Potential Mitigations
- It is critical to contact current and, especially, former franchisees listed in Exhibit F to discuss their experiences and reasons for leaving the system.
- An accountant can help you analyze the turnover data across all categories (cessations, transfers, terminations) to gauge the system's overall health.
- In discussions with the franchisor, asking direct questions about the circumstances surrounding these closures is an important due diligence step your attorney can guide.
Rapid System Growth
Medium Risk
Explanation
The franchise system has grown quickly, from zero to 29 franchised units in three years. While growth can be positive, when combined with the franchisor's significant operating losses and negative net worth disclosed in Item 21, it creates a risk. The franchisor's resources may be stretched thin, potentially compromising its ability to provide the necessary training, site support, and operational guidance to its expanding network of franchisees.
Potential Mitigations
- Inquiring with a diverse group of franchisees—both new and established—about the quality and responsiveness of franchisor support is a crucial step.
- Your business advisor can help you assess whether the franchisor's support staff and infrastructure, as described in Item 11, appear adequate for the system's size.
- Questioning the franchisor directly about their specific plans to scale support systems to match unit growth should be part of your due diligence.
New/Unproven Franchise System
High Risk
Explanation
Mobiledumps began franchising in late 2021 and has a limited operational history, which the FDD flags as a "Short Operating History" special risk. An unproven system carries inherent uncertainties regarding the long-term viability of the business model, brand recognition, and the effectiveness of its support structures. This risk is amplified by the franchisor's significant financial losses and negative net worth, which suggests the model is not yet proven to be profitable or sustainable.
Potential Mitigations
- Extensive due diligence is required; speaking with the earliest franchisees in the system to understand their experience is critical.
- A thorough review of the management team's prior industry and franchising experience, as detailed in Item 2, should be conducted with your business advisor.
- Your attorney might be able to negotiate more favorable terms, such as enhanced support commitments, to help offset the risks of a new system.
Possible Fad Business
Low Risk
Explanation
This specific risk was not identified in the FDD package. A fad business is one tied to a fleeting trend, which can be risky as consumer interest may decline before you can achieve a return on your investment. Long-term franchise agreements can outlast the popularity of a fad, potentially leaving you with an obsolete business.
Potential Mitigations
- Independent market research, with help from a business advisor, is essential to assess the long-term consumer demand for any franchise's products or services.
- It is wise to evaluate a business model’s resilience to economic shifts and its ability to adapt beyond current trends with your financial advisor.
- Reviewing the franchisor's history of innovation and product development in Item 11 can provide insight into their long-term vision.
Inexperienced Management
Medium Risk
Explanation
The executive team has mixed experience. The CEO has relevant prior experience as a franchisee in a similar industry (PODS), and the Chief Development Officer has franchise development experience with other brands. However, both have been in their roles for about a year. The Vice President of Operations has a more varied background with less direct experience in this sector. This newness of the team in their current roles could present leadership and operational challenges for a young system.
Potential Mitigations
- A business advisor can help you evaluate whether the management team's collective experience is sufficient to navigate the challenges of a young, growing franchise.
- Asking current franchisees about their direct experiences with the leadership team's support and strategic direction is crucial.
- Directly questioning the management team about their vision and strategy for achieving system profitability would be a prudent step in your due diligence.
Private Equity Ownership
Low Risk
Explanation
This specific risk was not identified in the FDD package. When a private equity firm owns a franchisor, there can be a risk that decisions are driven by short-term financial targets for investors rather than the long-term health of the brand and its franchisees. This might manifest as increased fees, reduced support, or pressure to use affiliated vendors.
Potential Mitigations
- If a franchisor is PE-owned, it's wise to research the firm's reputation and track record with other franchise systems they have managed.
- Your attorney should review the Franchise Agreement for any clauses that make it easier for the franchisor to be sold again without your consent.
- Speaking with franchisees who have been in the system before and after a PE acquisition can provide valuable insight.
Non-Disclosure of Parent Company
Low Risk
Explanation
This specific risk was not identified in the FDD package. The FTC Rule requires disclosure of parent companies in Item 1. If a franchisor is a subsidiary of another company, the parent's financial health can be critical, especially if the franchisor itself is new or financially weak. Failure to disclose a parent or provide its financial statements when required can hide significant risks.
Potential Mitigations
- Your attorney can help verify the franchisor's corporate structure and determine if a parent entity exists.
- If a parent company guarantee is offered, it's crucial for your accountant to review the parent's financial statements.
- Understanding the full corporate structure is key to assessing where the ultimate financial responsibility and control lies; a business advisor can assist.
Predecessor History Issues
Low Risk
Explanation
This specific risk was not identified in the FDD package, as Item 1 indicates no predecessors. When a franchisor has acquired a business from a predecessor, it's important to understand the predecessor's history. Past issues such as high franchisee turnover or litigation under the previous owner could indicate systemic problems that may persist under new ownership.
Potential Mitigations
- A thorough review of any predecessor information in Items 1, 3, and 4 should be conducted by your attorney.
- Independent research into a predecessor's business reputation can sometimes uncover issues not detailed in the FDD.
- If possible, speaking with franchisees who operated under the predecessor can provide invaluable historical context.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses a significant regulatory action. The franchisor entered into a Consent Order with the State of Washington for offering and selling an unregistered franchise and for making false statements to the state's regulatory division. While this is a single action, its nature is serious, indicating a past failure in legal compliance and disclosure integrity. This could be a red flag regarding the franchisor's internal processes and management oversight.
Potential Mitigations
- Your franchise attorney must carefully review the details of this consent order and explain its potential implications for you.
- It is advisable to ask the franchisor what specific steps they have taken to prevent such compliance failures from recurring.
- This event heightens the importance of verifying all information in the FDD and obtaining independent advice from legal and financial professionals.
Disclosure & Representation Risks
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
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Financial & Fee Risks
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.
Legal & Contract Risks
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.
Territory & Competition Risks
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.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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.
Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.
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