What is the condition for the 1-800-GOT-JUNK? Franchisor to grant additional subterritories?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor and Franchisee desire to add one or more additional Subterritories to the Territory, Franchisor may require, as a condition of granting such additional Subterritory, that Franchisee enter into an amending agreement, or at the election of Franchisor, Franchisor’s then current form of franchise agreement, in respect of such additional Subterritories, the term of which may coincide with the term of this Agreement.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, 1-800-GOT-JUNK? may require franchisees to enter into an amending agreement or the franchisor's current form of franchise agreement as a condition of granting additional subterritories. The term of the new agreement may coincide with the term of the original agreement.
This means that if a franchisee wants to expand their territory by adding more subterritories, 1-800-GOT-JUNK? has the right to modify the existing franchise agreement or require the franchisee to sign a new agreement. This gives 1-800-GOT-JUNK? flexibility to update the terms and conditions of the franchise relationship as the system evolves.
For a prospective franchisee, this condition highlights the importance of carefully reviewing the initial franchise agreement and understanding the potential implications of expanding into additional subterritories. The franchisee should be prepared to negotiate the terms of any amending agreement or new franchise agreement to ensure they are favorable and align with their business goals. It is also important to note that the new agreement's term can coincide with the original agreement.