Does the 1-800-GOT-JUNK? Franchise Agreement specify any geographic limits related to the 'Limitation on Grant / Territory' in Section 2.3?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
): 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. Scheduled Opening Date of Franchised Business (Section 2.5): , which Franchisor may extend by up to 60 days under Section 2.5. Term (Section 2.6): 5 years from the Scheduled Opening Date. Renewal Term (Article 19): Three renewal terms of 5 years each, commencing immediately following the last day of the Term or Renewal Term, as the case may be. Initial Fee (Section 3.1): Total: $, plus any taxes, as applicable, due as follows: Subterritory Territory Active Date Subterritory Initial Fee Date Due 1A $8,125 1B $8,125 1C $8,125 1D $8,125 1E $8,125 1F $8,125 1G $8,125 1H $8,125 Minimum Royalty (Section 3.5): “Minimum Royalty” means: (a) in respect of the calendar year in which the Scheduled Opening Date of the Franchised Business occurs, $1,200 dollars, pro-rated as necessary to account for operations for a partial calendar year only, for each Subterritory in the Territory;
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Based on the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the agreement outlines specific geographic limits related to the territory granted to a franchisee. According to Schedule B of the Franchise Agreement, the territory is defined by the area identified on an attached schedule labeled “Territory.” If applicable, subterritories are also granted and identified on attached schedules labeled “Subterritory 1A” through “Subterritory.”
For defining the territory or subterritory, the agreement uses zip codes, referencing those in effect as of the agreement's effective date. In case of any discrepancy between the zip codes and the map, the map will take precedence. This ensures clarity in defining the boundaries within which the 1-800-GOT-JUNK? franchisee is authorized to operate.
The Franchise Agreement also states that as long as the franchisee is in full compliance with the terms and conditions of the agreement, 1-800-GOT-JUNK? will not establish or operate, nor grant to anyone else, a franchise to establish or operate a 1-800-GOT-JUNK? business within the franchisee's designated territory. The territory will be divided into subterritories, which will be set out in Schedule B. Franchisees must pay an additional franchise fee for each subterritory, and they cannot begin offering services in any subterritory until the fee for that subterritory has been paid in full, unless they have prior written consent from 1-800-GOT-JUNK?.