exception

What is the exception to the territorial grant for the 1-800-GOT-JUNK? Franchisor and its affiliates?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

So long as Franchisee is in full compliance with the terms and conditions of this Agreement, Franchisor shall refrain from establishing or operating or granting to anyone else a franchise to establish or operate a 1-800-GOT-JUNK? business within the Territory. The Territory will be divided into subterritories, which will be set out in Schedule B (the “Subterritories”). Franchisee shall pay an additional franchise fee for each Subterritory (“Subterritory Initial Fees”), as set out in Schedule B or as Franchisor and Franchisee may otherwise agree in writing. Franchisee shall not, without Franchisor’s prior written consent, begin offering the Services in any Subterritory until the Subterritory Initial Fee for that Subterritory has been paid in full. If Franchisor and Franchisee desire to add one or more additional Subterritories to the Territory, Franchisor may require, as a condition of granting such additional Subterritory, that Franchisee enter into an amending agreement, or at the election of Franchisor, Franchisor’s then current form of franchise agreement, in respect of such additional Subterritories, the term of which may coincide with the term of this Agreement. Without limiting Franchisee’s obligation to perform due diligence prior to entering into this Agreement, in the event Franchisee is unable to operate in any one or more Subterritory due to government regulations, Franchisor

Source: Item 22 — Contracts (FDD page 24)

What This Means (2025 FDD)

According to the 2025 FDD, 1-800-GOT-JUNK? grants franchisees a territory where the franchisor will refrain from establishing or operating, or granting to anyone else a franchise to establish or operate, a 1-800-GOT-JUNK? business within that territory, so long as the franchisee is in full compliance with the terms and conditions of the Franchise Agreement. The territory will be divided into subterritories, which will be set out in Schedule B. Franchisees must pay an additional franchise fee for each subterritory. Franchisees must receive prior written consent and pay the subterritory initial fee in full before offering services in any subterritory.

If 1-800-GOT-JUNK? and the franchisee want to add one or more subterritories to the territory, 1-800-GOT-JUNK? may require the franchisee to enter into an amending agreement or 1-800-GOT-JUNK?'s then-current form of franchise agreement. This would be in respect of such additional subterritories, the term of which may coincide with the term of the original agreement.

If a franchisee is unable to operate in one or more subterritories due to government regulations, this does not limit the franchisee's obligation to perform due diligence prior to entering into the agreement. This means it is the franchisee's responsibility to investigate and understand any potential limitations on their ability to operate within the subterritories before signing the agreement.

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.