What is the 'Effective Date' field intended for on the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE B
This is Schedule B to a Franchise Agreement between
1-800-GOT-JUNK?
LLC, a Delaware limited liability company and
FRANCHISED BUSINESS - PARTICULARS
Effective Date:
Franchised Location (Section 4.1):
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.
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.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the 'Effective Date' in Schedule B of the 1-800-GOT-JUNK? Franchise Agreement specifies when the agreement officially takes effect. Schedule B to the Franchise Agreement includes fields for 'Effective Date', 'Franchised Location', 'Territory', 'Subterritories', 'Scheduled Opening Date of Franchised Business', and 'Term'.
The 'Effective Date' is important because it can determine other key timelines and obligations within the franchise agreement. For example, the definition of the territory or subterritories granted to the franchisee may reference zip codes in effect as of the 'Effective Date'. This means any changes to zip code boundaries after that date would not alter the defined territory.
Furthermore, the 'Term' of the 1-800-GOT-JUNK? franchise is defined as 5 years from the 'Scheduled Opening Date'. The 'Scheduled Opening Date' itself is also listed in Schedule B, highlighting how the 'Effective Date' works in conjunction with other dates to establish the franchisee's rights and responsibilities. The guarantor's obligations under the Guarantee Agreement are tied to the Effective Date of the Franchise Agreement.