For a 1-800-GOT-JUNK? franchise, what is the timeframe for curing a default related to non-payment to any third party providing goods to the Franchised Business?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
failure to pay any sum when due to Franchisor, any Affiliate or nominee of Franchisor,
Franchisee’s landlord, any governmental authority, the lessor of any Vehicle, supplier of
any item of Supplies or other inventory, equipment or products to the Franchised Business,
or any other third party providing any goods or services to the Franchised Business, and
Franchisee fails to cure such non-payment within fifteen (15) days after written notice of
such default has been delivered to Franchisee; or
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, a franchisee has fifteen (15) days to cure a default related to non-payment to any third party providing goods or services to the Franchised Business. This cure period begins after the franchisee receives written notice of the default from 1-800-GOT-JUNK?.
This means that if a 1-800-GOT-JUNK? franchisee fails to pay a supplier, landlord, or any other third party providing goods or services, 1-800-GOT-JUNK? can issue a written notice of default. The franchisee then has 15 days from the date of that notice to resolve the outstanding payment. Failure to cure the non-payment within this timeframe could result in 1-800-GOT-JUNK? terminating the franchise agreement.
It is important to note that this 15-day cure period specifically applies to non-payment defaults. Other types of defaults, such as failing to comply with other obligations in the franchise agreement or failing to conduct the business in a businesslike manner, have a longer cure period of thirty (30) days. Additionally, if a franchisee receives three or more default notices within a 12-month period, 1-800-GOT-JUNK? may terminate the agreement immediately without an opportunity to cure the current default.