What is the definition of 'Subterritory Activation Dates' according to Section 2.5 of the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the franchise agreement includes a schedule outlining the initial fees and due dates for each subterritory. The table provides the subterritory, the subterritory initial fee of $8,125, and a 'Territory Active Date'.
This 'Territory Active Date' specifies when the franchisee is expected to begin operations within each designated subterritory. It's important to note that the franchisor has the option to extend the Scheduled Opening Date by up to 60 days under Section 2.5 of the agreement. This extension clause provides 1-800-GOT-JUNK? with some flexibility in accommodating unforeseen delays or logistical challenges that may arise during the initial setup phase.
Prospective franchisees should carefully review these dates and understand the implications of potentially delayed activation. They should also clarify with 1-800-GOT-JUNK? the process for requesting or negotiating extensions if necessary, and what recourse they have if 1-800-GOT-JUNK? extends the date.