For a 1-800-GOT-JUNK? franchise, are all supplier relationships mandatory, or are some suppliers recommended?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease certain items for your Franchised Business from us or our approved supplier(s) or under our specifications. All orders for Services and customer inquiries must be placed and processed using our designated Sales Center, and our designated customer relationship management system (the “CRM System”). We are the only approved supplier of the Sales Center and CRM System. Items you must purchase or lease from our approved suppliers include trucks, truck dump bodies, signage, uniforms, marketing materials, tools, equipment, credit and debit card processing services, communications equipment, computers and software.
Sometimes we will provide only specifications, and it will be up to you to find suppliers that meet our specifications. Some supplier relationships are mandatory but for some items we may recommend a supplier, but we will not require you to use that supplier. These specifications include model of truck, standards for gross tonnage, performance, type and appearance for your truck; insurance; memory, 4899-8658-3815.1
capacity and software capabilities of your computer; credit card processing software; and capabilities of your communications equipment. We require you to obtain insurance of the types and policies or coverages and the minimum policy limits or maximum deductibles or any policy as specified in the Operations Manual, and such requirements are apt to change from time-to-time during the term of your franchise. Unless we have specified otherwise, you may currently purchase or lease these items from sources you choose so long as they meet our specifications. We reserve the right, in the future, to serve as, to change, or to designate, an approved supplier for any of these items. Specifications and standards for these items are included in the Operations Manual, and may be updated or modified periodically by us.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, franchisees must purchase or lease certain items from 1-800-GOT-JUNK?'s approved suppliers or under their specifications. These items include the Sales Center and CRM System, for which 1-800-GOT-JUNK? is the only approved supplier. Other items franchisees must purchase from approved suppliers include trucks, truck dump bodies, signage, uniforms, marketing materials, tools, equipment, credit and debit card processing services, communications equipment, computers, and software.
However, 1-800-GOT-JUNK? does not mandate all supplier relationships. For some items, 1-800-GOT-JUNK? may recommend a supplier but will not require franchisees to use that specific supplier. In these instances, 1-800-GOT-JUNK? provides specifications that franchisees must meet, such as the model of truck, standards for gross tonnage, performance, type and appearance for the truck, insurance, memory, capacity and software capabilities of the computer, credit card processing software, and capabilities of the communications equipment. Unless specified otherwise, franchisees can purchase or lease these items from sources of their choosing, as long as they meet 1-800-GOT-JUNK?'s standards.
It is important to note that 1-800-GOT-JUNK? reserves the right to change or designate an approved supplier for any of these items in the future. Specifications and standards for these items are included in the Operations Manual and may be updated or modified periodically by 1-800-GOT-JUNK?. Depending on whether a franchisee leases or purchases their vehicle(s), the purchase and lease of items from approved suppliers or that meet 1-800-GOT-JUNK?'s specifications can represent a significant portion of their total expenses, ranging from approximately 10% to 90% during the establishment phase and 40% to 60% during ongoing operations.