Does the 1-800-GOT-JUNK? Franchise Agreement specify any geographic limits on the 'Grant of License' in Section 2.1?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE B
This is Schedule B to a Franchise Agreement between
1-800-GOT-JUNK?
LLC, a Delaware limited liability company and
FRANCHISED BUSINESS - PARTICULARS
Effective Date:
Franchised Location (Section 4.1):
Territory (Section 2.1(a)): The Territory granted to Franchisee under Section 2.1(a) of this Agreement is the area identified on the attached schedule labelled “Territory”.
Subterritories (if applicable) (Section 2.2): The Subterritories granted to Franchisee under Section 2.2 of this Agreement are the areas identified on the attached schedules labelled “Subterritory 1A” through to and including “Subterritory “__”.
Where zip codes are used to describe a Territory or Subterritory, the area represented shall be determined having reference to the zip codes in effect as of the Effective Date.
In the event of a discrepancy between the zip codes and the map for a particular Territory or Subterritory, the map shall govern.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Schedule B of the Franchise Agreement addresses the geographic limits of the license granted to the franchisee. Specifically, it states that the territory granted under Section 2.1(a) is the area identified on the attached schedule labeled 'Territory'.
Furthermore, if applicable, any subterritories granted under Section 2.2 are identified on attached schedules labeled 'Subterritory 1A' through 'Subterritory'. The document clarifies that where zip codes are used to define a territory or subterritory, the zip codes in effect as of the effective date of the agreement will be used for determining the area represented. In case of any discrepancy between zip codes and the map for a particular territory or subterritory, the map will take precedence.
This means that a prospective 1-800-GOT-JUNK? franchisee's exclusive operating area is explicitly defined by either a map or a list of zip codes, which are incorporated into the franchise agreement. It is important for the franchisee to carefully review these attachments to fully understand the geographic boundaries of their licensed territory and any subterritories, as these define where they are authorized to operate and provide services.