Nikonomics - The Economics of Small Business

191 - $1 Million Revenue, $250K Cash Flow: The Smash My Trash Franchise Model with Kevin Moyer

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Jun 23, 2025

Kevin Moyer transitioned from a lucrative tech career at Salesforce to become a franchise owner of Smash My Trash, combining work with tangible rewards. He shares the surprising challenges of franchise ownership, such as minimum royalties and personal guarantees. Operating mainly passively, Moyer reveals how he structured his business to generate significant cash flow while managing seasonal variations in California. He also discusses evaluating franchise opportunities and the complexities of hiring talent from the tech sector.

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ANECDOTE

Kevin's Tech to Trash Journey

Kevin Moyer transitioned from a $250K tech job to buying and running a Smash My Trash franchise.
He started with three territories and a truck, now owns five territories and employs four drivers, making it mostly passive.

INSIGHT

Desire for Direct Reward Control

Kevin wanted a tighter feedback loop between work and reward, which was missing in his tech jobs.
He craved direct control and immediate impact over his efforts' outcomes.

ADVICE

Beware Franchise Agreement Risks

Carefully review franchise agreements, especially clauses like minimum royalties and personal guarantees.
Understand these risks as they can cause high royalty fees and personal financial exposure.

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Join me, Nik (https://x.com/CoFoundersNik), as I interview Kevin Moyer (https://x.com/kevinjm). Kevin left the tech world, including a job at Salesforce where he was making up to $250K, seeking a tighter connection between his hard work and the reward.

He swung to the other end of the spectrum and became a franchise owner of Smash My Trash. Starting with three territories and one truck, he now operates five territories and has built the business to about $1 million in top-line revenue annually.

Despite the seasonal nature of his California location driven by agriculture, the business is now mostly passive, taking up only about an hour of his day. We discuss why he chose a franchise over starting a tech company or buying an existing business, the risks he didn't fully appreciate like minimum royalties and personal guarantees in the franchise agreement, and how he built a passive asset generating significant cash flow.

Questions This Episode Answers:

How did a tech founder transition from Silicon Valley to operating a trash franchise?

What specific unexpected risks should potential franchise owners be aware of, like minimum royalties?

How can a $1 million revenue business like Smash My Trash be structured to be mostly passive?

How do you evaluate the viability and potential pitfalls of a franchise territory?

What is the typical annual cash flow or SDE for a successful Smash My Trash franchise operating at $1M in revenue?

Enjoy the conversation!

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This week we covered:
00:00 From Tech to Trash: The Entrepreneurial Leap

10:07 Navigating the Franchise Landscape

20:14 The Financials of Smash My Trash

30:06 Lessons Learned and Future Plans