What is the condition for the 1-800-GOT-JUNK? Franchisor to grant additional Subterritory?
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 a franchisee 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 acquiring additional subterritories, 1-800-GOT-JUNK? has the right to modify the existing franchise agreement or require the franchisee to sign a new agreement altogether. This could potentially change the terms of the franchise agreement, such as the fees, royalties, or other obligations of the franchisee.
For a prospective 1-800-GOT-JUNK? franchisee, this implies that future expansion through additional subterritories is not guaranteed under the original agreement. The franchisee may need to accept new terms and conditions to expand their business. It would be prudent to discuss the potential terms of such amending agreements with 1-800-GOT-JUNK? before signing the initial franchise agreement to understand the possible future obligations for expansion.