According to the 1-800-GOT-JUNK? franchise agreement, where is the 'Effective Date' defined?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE B
This is Schedule B to a Franchise Agreement between
1-800-GOT-JUNK?
LLC, a Delaware limited liability company and
FRANCHISED BUSINESS - PARTICULARS
Effective Date:
Franchised Location (Section 4.1):
Territory (Section 2.1(a)): The Territory granted to Franchisee under Section 2.1(a) of this Agreement is the area identified on the attached schedule labelled “Territory”.
Subterritories (if applicable) (Section 2.2): The Subterritories granted to Franchisee under Section 2.2 of this Agreement are the areas identified on the attached schedules labelled “Subterritory 1A” through to and including “Subterritory “__”.
Where zip codes are used to describe a Territory or Subterritory, the area represented shall be determined having reference to the zip codes in effect as of the Effective Date.
In the event of a discrepancy between the zip codes and the map for a particular Territory or Subterritory, the map shall govern.
Scheduled Opening Date of Franchised Business (Section 2.5): *, which Franchisor may extend by up to 60 days under Section 2.5.
Term (Section 2.6): 5 years from the Scheduled Opening Date.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the 'Effective Date' of the franchise agreement is defined in Schedule B. Schedule B to the franchise agreement includes particulars such as the franchised business location, territory, subterritories, scheduled opening date, and the term of the agreement. The effective date specifies when the agreement officially takes effect.
Schedule B to the 1-800-GOT-JUNK? franchise agreement states that where zip codes are used to describe a territory or subterritory, the area represented will be determined based on the zip codes in effect as of the 'Effective Date'. In case of a discrepancy between the zip codes and the map for a particular territory or subterritory, the map will govern. This ensures clarity and precedence in defining the geographical boundaries of the franchise.
The 'Effective Date' is important because several key milestones and obligations are tied to it. For instance, the term of the franchise agreement is calculated from the scheduled opening date, which itself is linked to the 'Effective Date'. This date also serves as a reference point for determining the zip codes that define the franchisee's territory.
Prospective 1-800-GOT-JUNK? franchisees should pay close attention to the 'Effective Date' and ensure they understand its implications, as it marks the commencement of their rights and responsibilities under the franchise agreement. Reviewing Schedule B carefully and clarifying any uncertainties with 1-800-GOT-JUNK? is advisable to avoid potential misunderstandings or disputes later on.