What actions can 1-800-GOT-JUNK? take upon material default of installment payments?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon material default of installment payments we may, at our option and in our sole discretion, revise your Territory to remove any subterritories for which installment payments are in default, or terminate the Franchise Agreement. Your potential liabilities upon default also include acceleration of amounts due, and payment of collection costs. You are not required to waive defenses or other legal rights, and are not barred from asserting any defenses.
Source: Item 10 — Financing (FDD pages 24–33)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, if a franchisee materially defaults on installment payments for the initial franchise fee, 1-800-GOT-JUNK? has the option to take certain actions. These actions are at 1-800-GOT-JUNK?'s discretion.
Specifically, 1-800-GOT-JUNK? may revise the franchisee's territory by removing any subterritories for which installment payments are in default. Alternatively, 1-800-GOT-JUNK? can terminate the entire Franchise Agreement.
Furthermore, the franchisee's potential liabilities upon default include accelerating the amounts due, meaning the entire remaining balance becomes immediately payable. The franchisee may also be responsible for covering collection costs incurred by 1-800-GOT-JUNK? in its efforts to recover the defaulted payments. The FDD states that the franchisee is not required to waive defenses or other legal rights and is not barred from asserting any defenses.