Does the 1-800-GOT-JUNK? Franchise Agreement specify any geographic limits related to the 'Franchised Location' in Section 4.1?
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 franchised location in Section 4.1. The agreement specifies that the territory granted to the franchisee is detailed on an attached schedule labeled "Territory." If applicable, subterritories granted to the franchisee are identified on attached schedules labeled "Subterritory 1A" through "Subterritory."
For territories or subterritories described using zip codes, the defined area is based on the zip codes in effect as of the effective date of the agreement. In case of any discrepancy between the zip codes and the map for a specific territory or subterritory, the map will take precedence. This means that the physical map outlining the territory is the definitive guide, not just the list of zip codes.
This level of detail is typical for franchise agreements, as it clearly defines the geographic area where the franchisee is authorized to operate. Prospective 1-800-GOT-JUNK? franchisees should carefully review the attached territory schedules and maps to fully understand the boundaries of their exclusive operating area. Understanding these boundaries is crucial for business planning, marketing, and avoiding potential conflicts with other franchisees.