What are the deadlines associated with 'Subterritory Activation Dates' as described in Section 2.5 of the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
n. Scheduled Opening Date of Franchised Business (Section 2.5): , which Franchisor may extend by up to 60 days under Section 2.5. Term (Section 2.6): 5 years from the Scheduled Opening Date. Renewal Term (Article 19): Three renewal terms of 5 years each, commencing immediately following the last day of the Term or Renewal Term, as the case may be. Initial Fee (Section 3.1): Total: $, plus any taxes, as applicable, due as follows: Subterritory Territory Active Date Subterritory Initial Fee Date Due 1A $8,125 1B $8,125 1C $8,125 1D $8,125 1E $8,125 1F $8,125 1G $8,125 1H $8,125 Minimum Royalty (Section 3.5): “Minimum Royalty” means: (a) in respect of the calendar year in which the Scheduled Opening Date of the Franchised Business occurs, $1,200 dollars, pro-rated as necessary to account for operations for a partial calendar year only, for each Subterritory in the Territory;
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Schedule B outlines the 'Scheduled Opening Date of Franchised Business (Section 2.5): *,' which the Franchisor may extend by up to 60 days under Section 2.5.
Schedule B of the franchise agreement includes a section for 'Subterritories (if applicable) (Section 2.2).' This section specifies that the subterritories granted to the franchisee are identified on attached schedules labeled 'Subterritory 1A' through to and including 'Subterritory __'. The agreement also clarifies that where zip codes are used to describe a Territory or Subterritory, the area represented shall be determined having reference to the zip codes in effect as of the Effective Date. In the event of a discrepancy between the zip codes and the map for a particular Territory or Subterritory, the map shall govern.
Schedule B also lists the 'Term (Section 2.6): 5 years from the Scheduled Opening Date.' Additionally, the table on Schedule B-2 shows the 'Territory Active Date' for each subterritory, which is linked to the initial fee due for each subterritory. For example, subterritories 1A through 1H each have an initial fee of $8,125. However, the specific dates for these subterritory activation deadlines are not provided in this excerpt.