What is the definition of 'Territory' in the 1-800-GOT-JUNK? franchise agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Territory (Section 2.1(a)): The Territory granted to Franchisee under Section 2.1(a) of this Agreement is the area identified on the attached schedule labelled “Territory”.
Subterritories (if applicable) (Section 2.2): The Subterritories granted to Franchisee under Section 2.2 of this Agreement are the areas identified on the attached schedules labelled “Subterritory 1A” through to and including “Subterritory “__”.
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.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the 'Territory' granted to a franchisee is defined in Schedule B of the franchise agreement. This area is specifically identified on an attached schedule labeled 'Territory'.
Schedule B also mentions 'Subterritories,' which are divisions within the larger Territory. These Subterritories are detailed on separate schedules labeled 'Subterritory 1A' through 'Subterritory __'. The agreement clarifies that if zip codes are used to define the Territory or Subterritories, the boundaries are based on the zip codes in effect as of the agreement's effective date. In case of any discrepancy between zip codes and a map, the map will take precedence.
This means a prospective 1-800-GOT-JUNK? franchisee needs to carefully review Schedule B and the attached Territory map to understand the exact geographic area they will be responsible for. They should also confirm the current zip codes included in their territory. Any ambiguity or discrepancies should be clarified with 1-800-GOT-JUNK? before signing the agreement to avoid potential conflicts or misunderstandings later on.