How is the fair market value of the 1-800-GOT-JUNK? Franchised Business assets determined if 1-800-GOT-JUNK? chooses to purchase them upon termination or expiration?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
We may purchase some or all of the assets of the Franchised Business at fair market value (determined by agreement or appraisal) if the franchise terminates or expires.
Source: Item 16 — Restrictions On What the Franchisee May Sell (FDD pages 38–42)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, if the franchise terminates or expires, 1-800-GOT-JUNK? has the option to purchase some or all of the assets of the franchised business. The price 1-800-GOT-JUNK? would pay is the fair market value of the assets.
The FDD states that the fair market value will be determined either by agreement between 1-800-GOT-JUNK? and the franchisee, or through an appraisal process if an agreement cannot be reached. This means that initially, the franchisee and 1-800-GOT-JUNK? will attempt to negotiate a mutually acceptable price for the assets.
If the franchisee and 1-800-GOT-JUNK? cannot agree on the fair market value, the FDD indicates that an appraisal will be used to determine the price. The FDD does not specify the details of the appraisal process, such as who selects the appraiser or how the costs are handled. It is important for a prospective franchisee to clarify these details with 1-800-GOT-JUNK? to fully understand the process for determining fair market value in the event of termination or expiration.