royalty information
Royalty Structure Update
March 22, 2023
Dear redbox+ Dumpsters Franchisee,
Over the past couple of years, BFG has implemented a number of initiatives and made numerous investments that reflect the company’s commitment to supporting redbox+ Dumpsters franchisees and the growth of the brand. From launching a new and improved website and identifying and rolling out a better business software to significantly bolstering the redbox+ Dumpsters support team, we’re now better positioned than ever to help owners achieve profitable growth and expand our brand nationwide.
On these and other projects, the redbox+ Dumpsters Advisory Council (RAC) has been a valuable voice of the network, sounding board, and partner in helping us develop solutions that best support our owners. The RAC recently raised another important topic with us that has generated a significant amount of discussion and thought – the idea of a revised royalty structure. This concept and their specific suggestions for elements of a new structure, combined with feedback from our Regional Business Coaches, the redbox+ Dumpsters leadership group, and others around the BFG organization have led us to today’s announcement of a revised royalty structure that we believe is one more key step toward helping franchisees succeed and the brand’s continued expansion.
Below is an overview of the plan that we embarked on that has led us to this decision:
- Purpose: Design a plan that would have a positive impact on all franchises
- Goals:
- Ensure that we have a strong, profitable business model for both redbox+ Dumpsters and franchisees for the long term
- Help drive growth in franchise locations
- Stretch franchisees’ expectations
- Create an environment that fosters trust, growth, and profitability for all franchises regardless of the size or maturity of the franchise
With these four goals in mind, we are introducing the revised redbox+ Dumpsters royalty structure below, which will deliver immediate royalty savings for a number of franchisees while having longer-term royalty savings for all franchisees.
This new structure eliminates a number of structures previously established and combines all but a handful of franchisees under one universal structure.
Additionally:
- The New Container 4-month Royalty Discount that is currently set to expire May 1, 2023, will be extended through March 31, 2024.
- The $4,000 transportation credit for new container purchases established in November 2022 will be extended until further notice. We will also provide at least 90 days' notice if and when this promotion is discontinued.
- redbox+ Dumpsters will also continue to waive the Minimum Container Royalty Requirement (which has been in place prior to and since BFG took ownership) until April 1, 2024.
The redbox+ Dumpsters team is also in the process of preparing a set of Core Values as well as a Safety Plan outline that franchisees can use in their operations. Be on the lookout for these new communications and tools in the near future.
On behalf of our entire redbox+ Dumpsters team, we would like to thank the members of the RAC for working with us on this new Royalty Structure as well as the extension of promotions. Your RAC members take on a major time commitment and responsibility to represent the brand and their fellow franchisees. We believe they have done an excellent job representing the interests of the entire network and we thank them for their leadership.
At redbox+ Dumpsters, we are committed to providing and supporting a successful franchise model and fostering a culture of growth and top performers and we believe our revised royalty structure and other incentives will go a long way toward achieving these goals.
Thank you for all you do every day to provide outstanding service to your customers and grow your local business as we work together to make redbox+ Dumpsters the premier roll-off dumpster rental provider in the country.
Sincerely,
Dean DiValerio
Director of Operations
redbox+ Dumpsters
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