factual

What 'Other Fees' might a 1-800-GOT-JUNK? franchisee be required to pay, as outlined in section 3.9 of the Franchise Agreement?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

If other 1-800-GOT-JUNK? franchises are served by the same online pages or classified section, Franchisor shall have the right to require group listings therein, to make direct arrangements with the telephone company and to allocate an equitable part of the cost thereof to Franchisee.

10.5 Branding Cooperative. Franchisor may, but is not obliged to, establish one or more branding cooperatives of 1-800-GOT-JUNK? franchisees (each, a “Branding Cooperative”) operating within a particular geographic area, or using such other parameters as Franchisor may designate in its sole discretion, and which may comprise the entire System. If the Franchised Business is located in a geographic area where a Branding Cooperative is established or meets the parameters that Franchisor designates for any other Branding Cooperative, Franchisee shall join and fully participate, at its sole expense, in such Branding Cooperative established and designated by Franchisor. Each franchisee subject to a Branding Cooperative shall be required to comply with the terms of such Branding Cooperative, including, without limitation, the requirement to attend all meetings of the Branding Cooperative. Further, if approved by franchisees representing at least 65% of the total revenue base generated by the members of the Branding Cooperative (which revenue base and percentage shall be determined and calculated by Franchisor in its sole discretion), Franchisee shall contribute to the Branding Cooperative in such amounts, at such times, and in such manner as specified by Franchisor in its sole discretion; provided that Franchisee shall not be required to contribute more than 5% of its Gross Revenue in the aggregate for all Branding Cooperatives to which Franchisee belongs, and any amount contributed by Franchisee to any Branding Cooperative may

Source: Item 22 — Contracts (FDD page 24)

What This Means (2025 FDD)

According to the 2025 FDD, 1-800-GOT-JUNK? franchisees may incur several 'Other Fees' during the course of their franchise agreement. These fees can include contributions to Branding Cooperatives, if the franchisee's business is located in an area where such a cooperative is established.

Franchisees are obligated to join and participate in these Branding Cooperatives at their own expense, adhering to the cooperative's terms, including attending meetings. If approved by franchisees representing at least 65% of the Branding Cooperative's total revenue base, a franchisee must contribute to the cooperative. However, the total contribution for all Branding Cooperatives cannot exceed 5% of the franchisee's Gross Revenue.

Additionally, if other 1-800-GOT-JUNK? franchises share online pages or classified sections, 1-800-GOT-JUNK? has the right to arrange group listings with the telephone company and allocate an equitable portion of the cost to the franchisee. These fees are in addition to the initial franchise fee and ongoing royalty fees.

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.