What is the definition of 'Subterritories' in the 1-800-GOT-JUNK? franchise agreement?

According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the Subterritories granted to the franchisee are defined within the franchise agreement. Specifically, Section 2.2 states that these subterritories are the areas identified on attached schedules labeled “Subterritory 1A” through to and including “Subterritory “__”. These subterritories are part of the overall territory granted to the franchisee. Zip codes are used to describe the territory or subterritory, with the zip codes in effect as of the effective date of the agreement being the point of reference. In case of discrepancies between zip codes and the map, the map will govern.

For a 1-800-GOT-JUNK? franchisee, understanding the delineation of subterritories is crucial as it defines the specific geographic areas within which they are authorized to operate. The franchisee needs to be aware of the boundaries of each subterritory, as outlined in the schedules, to avoid any overlap or conflict with other franchisees. The reference to zip codes and maps provides a clear method for determining these boundaries, ensuring that the franchisee can accurately identify their operational area.

Furthermore, the franchise agreement stipulates that the franchisee must pay an additional franchise fee for each subterritory, referred to as “Subterritory Initial Fees,” as detailed in Schedule B or as otherwise agreed upon in writing between 1-800-GOT-JUNK? and the franchisee. The franchisee cannot commence offering services in any subterritory until the Subterritory Initial Fee for that specific area has been fully paid. This condition highlights the financial commitment required for expanding operations within the granted territory and the importance of adhering to the payment terms outlined in the agreement.

If a franchisee wishes to add more subterritories to their territory, 1-800-GOT-JUNK? may require them to enter into an amending agreement or, at 1-800-GOT-JUNK?'s election, their then-current form of franchise agreement. This new agreement's term may coincide with the term of the original agreement. This clause allows 1-800-GOT-JUNK? to update the terms and conditions applicable to the additional subterritories, ensuring that the franchise agreement remains current and relevant. Franchisees should carefully consider the implications of such amendments, as they may include changes to fees, operational requirements, or other key aspects of the franchise relationship.