For 1-800-GOT-JUNK?, what is the consequence if the franchisee omits to do anything which causes the Franchised Business to be closed for business for five consecutive Business Days?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
rior to expiration of the Term or any Renewal Term and notwithstanding anything otherwise contained in this Agreement, Franchisor shall have the right to terminate this Agreement and the right and license granted hereby to Franchisee on account of one or more of the following defaults by Franchisee: (a) failure to pay any sum when due to Franchisor, any Affiliate or nominee of Franchisor, Franchisee’s landlord, any governmental authority, the lessor of any Vehicle, supplier of any item of Supplies or other inventory, equipment or products to the Franchised Business, or any other third party providing any goods or services to the Franchised Business, and Franchisee fails to cure such non-payment within fifteen (15) days after written notice of such default has be
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, if a franchisee does anything or fails to do something that results in the business being closed or not operating in full compliance with the agreement for five consecutive business days, or any five business days within a thirty-day period, without prior written consent from 1-800-GOT-JUNK?, the franchisor has the right to terminate the franchise agreement.
This means that 1-800-GOT-JUNK? can terminate the agreement without giving the franchisee an opportunity to correct the issue. This is a significant risk for franchisees, as any prolonged closure, even if due to unforeseen circumstances, could lead to the termination of their franchise agreement.
Franchisees should be aware of this clause and take all necessary precautions to ensure their business remains operational and in compliance with the agreement. Obtaining prior written consent from 1-800-GOT-JUNK? is crucial if any situation arises that may lead to a temporary closure of the business.