What is the amount of the Initial Marketing Expense that a 1-800-GOT-JUNK? franchisee must pay?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You will also pay an Initial Marketing Expense of $25,000 when you sign the Franchise Agreement. We will use this money to market and promote your Franchised Business prior to and during the first six months of operation. The timing, type and amount of marketing made with the Initial Marketing Expenses are at our sole discretion, but the monies will be spent in your local area (as we define it). The Initial Marketing Expense is non-refundable, unless we do not approve your application.
Source: Item 5 — Initial Fees (FDD pages 10–11)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, a new franchisee is required to pay an Initial Marketing Expense of $25,000. This expense is paid when the Franchise Agreement is signed.
1-800-GOT-JUNK? uses this $25,000 to market and promote the franchisee's business both before and during the first six months of operation. The specific marketing strategies, timing, and allocation of the funds are determined by 1-800-GOT-JUNK? at their discretion. However, the FDD specifies that the money will be spent in the franchisee's local area, as defined by 1-800-GOT-JUNK?.
The Initial Marketing Expense is non-refundable, unless 1-800-GOT-JUNK? does not approve the franchisee's application. This means that if the application is approved, the $25,000 is non-refundable under any circumstances, regardless of the franchisee's performance or satisfaction with the marketing efforts.