To whom is the equipment lease/purchase deposit paid for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Type of Expenditure Amount Method of Payment
When Due To Whom Payment Is to Be Made Low High Initial Franchise Fee (Notes 1 and 12) $65,000 $97,500 Lump sum At signing of Franchise Agreement. Initial Marketing Expense (Notes 2 and 12) $25,000 $25,000 Lump sum At signing of Franchise Agreement (then disbursed to 3rd Party Vendors) Computer Hardware and Software (Note 3) $1,500 $4,000 As arranged As incurred 3rd Party Vendors Miscellaneous Opening Costs (Note 4) $5,000 $15,000 As arranged As arranged 3rd Party Vendors Equipment (Vehicle Lease with dump body) Lease/purchase deposit (Note 5) $10,000 $30,000 Monthly Lease Monthly Dealer/Seller/ Lessor/Finance Company Real Estate/Rent (Note 6) $1,200 $5,000 As arranged As arranged Landlord/Lessor
Source: Item 7 — Estimated Initial Investment (FDD pages 17–21)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the equipment lease/purchase deposit, which ranges from $10,000 to $30,000, is paid monthly to the Dealer/Seller/Lessor/Finance Company. This deposit is part of the initial investment required to start a 1-800-GOT-JUNK? franchise.
The FDD notes that the total cost for a gasoline-powered truck is estimated at $77,750 and $82,700 for a diesel-powered truck, including an approved dump body at an estimated cost of $25,100. The low-end figure assumes the truck is leased or financed and does not include applicable taxes or shipping. The high-end figure assumes a 20% down payment on the purchase of a truck, plus ongoing monthly payments. Franchisees must obtain a truck equipped with a dump body from 1-800-GOT-JUNK?'s designated supplier.
1-800-GOT-JUNK? requires a minimum of two trucks, but franchisees with multiple subterritories may need more. While it is recommended to operate all vehicles as soon as possible, franchisees are only required to purchase or lease two trucks upon startup and additional trucks according to an agreed-upon schedule. These trucks must be used solely for the operation of the 1-800-GOT-JUNK? franchise.