factual

What is the effective date section on the 1-800-GOT-JUNK? Franchise Agreement?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

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. 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 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, Schedule B of the Franchise Agreement includes a section to specify the Effective Date. This date is important because several aspects of the franchise agreement are tied to it. For example, if zip codes are used to define the territory, the zip codes in effect as of the Effective Date will be used.

The Scheduled Opening Date of the franchised business is also listed in Schedule B, and 1-800-GOT-JUNK? may extend it by up to 60 days. The term of the franchise agreement is 5 years from the Scheduled Opening Date.

Additionally, the Franchise Agreement becomes effective only when both 1-800-GOT-JUNK? and the franchisee have signed it. The signatures acknowledge that the franchisee has received, read, and understood the agreement, including awareness of the business risks involved. The Guarantee, Postponement, and Covenants Agreement also has an effective date.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.