What is the failure to report fee for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: Other Fees]
Name of Fee Amount Due Date Remarks Failure to Report Fee 5% of the Royalty, the Sales, Marketing and Technology Fee and other amounts payable to us during the applicable semi-monthly period Upon demand Payable if you fail to submit a semi-monthly report as required by the Franchise Agreement
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, a franchisee will be charged a Failure to Report Fee if they fail to submit a semi-monthly report as required by the Franchise Agreement. This fee is 5% of the Royalty, the Sales, Marketing and Technology Fee, and any other amounts payable to 1-800-GOT-JUNK? during the applicable semi-monthly period. This fee is due upon demand.
For a prospective 1-800-GOT-JUNK? franchisee, this means that consistently submitting semi-monthly reports is crucial to avoid incurring this additional expense. The fee is calculated as a percentage of several key payments, so the exact amount can vary depending on the franchisee's revenue and other financial obligations during that period.
It's important to note that the Royalty fee is 8% of Gross Revenue, and the Sales, Marketing and Technology Fee is also 8% of Gross Revenue. Therefore, the Failure to Report Fee will be a percentage of these amounts, in addition to any other amounts payable to 1-800-GOT-JUNK?. Franchisees should ensure they understand the reporting requirements outlined in the Franchise Agreement to avoid this fee.