When is the failure to report fee payable for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the failure to report fee is payable upon demand. This fee is triggered if a franchisee fails to submit a semi-monthly report as required by the Franchise Agreement. The amount of the fee is 5% of the Royalty, the Sales, Marketing and Technology Fee, and other amounts payable to 1-800-GOT-JUNK? during the applicable semi-monthly period.
For a prospective 1-800-GOT-JUNK? franchisee, this means that consistently submitting semi-monthly reports on time is crucial to avoid incurring this additional fee. The fee is calculated as a percentage of several key payments, so it could represent a significant added expense if a report is missed.
Franchisees should ensure they understand the reporting requirements outlined in the Franchise Agreement and establish systems to meet those deadlines. Given that the fee is a percentage of royalties and other fees, its actual dollar amount will vary depending on the franchisee's revenue and other financial obligations during the semi-monthly period in question.