According to the 1-800-GOT-JUNK? franchise agreement, what is included in the definition of 'Related Parties'?

Based on the 2025 Franchise Disclosure Document, the 1-800-GOT-JUNK? franchise agreement defines "Affiliate" as any entity that directly or indirectly controls, is controlled by, or is under common control with the Franchisor. Control, in this context, means the power to vote 50% or more of the equity interests with ordinary voting power for the election of directors or to direct the management and policies of the entity, whether by contract or otherwise. This definition is important for prospective franchisees as it clarifies the scope of entities that are considered related to the franchisor and may have influence or involvement in the franchise system.

This definition is crucial for understanding potential conflicts of interest, the scope of liability, and the overall structure of the 1-800-GOT-JUNK? franchise network. For instance, the franchisor may retain one or more of its Affiliates to assist with the administration of the Sales, Marketing and Technology Fund. This means that decisions regarding the fund's management could be influenced by entities related to the franchisor, potentially impacting how marketing and technology resources are allocated within the franchise system.

Furthermore, the franchise agreement specifies that neither the Franchisor nor its Affiliates assume direct or indirect liability to the Franchisee regarding the Sales, Marketing and Technology Fund, the Sales Center, or the CRM System, except as expressly provided in the agreement. This limitation of liability is a significant consideration for franchisees, as it outlines the extent to which they can hold the franchisor or its related entities accountable for the performance or administration of these key components of the 1-800-GOT-JUNK? system. Understanding these relationships and limitations is essential for making informed decisions about investing in a 1-800-GOT-JUNK? franchise.