factual

Does 1-800-GOT-JUNK? administer and maintain the Sales, Marketing and Technology Fund?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

In recognition of the value of a centralized call center, uniform order processing, customer relationship management software systems and uniform marketing and promotion to the goodwill and public image of the System, you must contribute to our sales, marketing and technology fund (the “Sales, Marketing and Technology Fund”) an amount not less than 8% of your Gross Revenue. We administer and maintain the Sales, Marketing and Technology Fund and use and expend the fund in our sole and absolute discretion to, among other things: (i) cover costs associated with the procurement, development, operation, and maintenance and replacement of all hardware, software, and other items used in connection with all technology that supports the contact with the customer on all platforms, including the Sales Center, the customer relationship management platform, field service management platform, E-commerce platform, business intelligence platform, customer communications platform, infrastructure platform, and any other online booking engine, and any related current or new technology and/or systems, including all costs associated with staffing the Sales Center (including all salaries, compensation, benefits and administrative costs for Sales Center staff employed by us or our affiliates) and overhead, operational and ongoing costs associated with maintaining the above platforms and systems; (ii) cover costs associated with media purchases, retaining advertising, marketing, digital and public relations agencies (either through an affiliate, or through an advertising or public relations agency formed by us or an affiliate for such purpose), commissions, marketing analytics, market research and concept research, website development and design, website search optimization, system development (including marketing technology platforms), loyalty programs, design and maintenance of coupon or gift card programs, social media management, brand strategy, brand development, creative and production costs, including, without limitation, the costs of creating promotions and artwork, as well as video and audio creative, marketing pilots, marketing innovations, printing costs, customer experience design, strategic partnerships, and other costs (including all salaries, compensation, benefits and administrative costs of staff employed by us or our affiliates for the purposes of marketing, promotion or related activities) relating to national, regional, or local advertising, marketing and promotional programs undertaken by us and all other overhead and ongoing costs associated therewith; (iii) cover costs associated with marketing to, acquiring, managing, billing and collecting from National Account Customers, as well as marketing to, acquiring, and managing local commercial services (including all salaries, compensation, benefits and administrative costs of staff employed by us or our affiliates for the purposes of marketing to, acquiring, managing, billing and collecting from National Account Customers, as well as marketing to, acquiring and managing local commercial services) and all other overhead and ongoing costs associated therewith;; and (iv) defray our and any one or more of our affiliates’ expenses in operating the Sales, Marketing and Technology Fund, including reasonable salaries, administrative costs and overhead (calculated on a fully allocated basis) as we or our affiliate(s) may incur in activities reasonably related to the administration or direction of the Sales, Marketing and Technology Fund and the expenditures from the Sales, Marketing and Technology Fund including the types of expenditures set out above. We may in our discretion retain one or more of our affiliates to assist with the administration of the Sales, Marketing and Technology Fund. 4899-8658-3815.1

We select the types of media used and the location of the advertising campaigns administered through the Sales, Marketing and Technology Fund. We use or may use the following media: digital, print, radio, television, telephone, directories, internet and direct mail. The marketing focus is generally on national coverage and marketing development, but may include regional and local efforts in our discretion; and will be handled in-house at 1-800-GOT-JUNK? or outsourced to O2E Brands or another Affiliate or to a national or regional professional advertising or public relations firm.

Source: Item 10 — Financing (FDD pages 24–33)

What This Means (2025 FDD)

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? does administer and maintain the Sales, Marketing and Technology Fund. Franchisees are required to contribute a minimum of 8% of their gross revenue to this fund. 1-800-GOT-JUNK? has the sole discretion in how the fund is used.

The funds are used for various purposes, including covering costs related to technology that supports customer contact across different platforms, such as the Sales Center and CRM. It also covers expenses related to media purchases, advertising agencies, marketing analytics, website development, and other marketing-related activities. The fund can also be used to cover the salaries, compensation, and benefits of staff involved in marketing and customer acquisition.

1-800-GOT-JUNK? may also use the fund to cover its own expenses and those of its affiliates in operating the Sales, Marketing and Technology Fund, including salaries, administrative costs, and overhead. The franchisor may also choose to retain affiliates to assist with the fund's administration. An in-house statement of operations for the fund will be prepared annually and made available to franchisees upon request, though the fund will not be audited.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.