How is franchisee consent calculated for establishing a 1-800-GOT-JUNK? Branding Cooperative?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Name of Fee Amount Due Date Remarks Branding Cooperative Up to 5% of Gross Revenue in aggregate As determined by us Only imposed if we authorize franchisees in a particular area to establish a branding cooperative and 65% of the involved franchisees (calculated on a gross revenue basis) subject to the branding cooperative consent to paying fees. See Section 10.5 of the Franchise Agreement. This is paid as directed by the Franchisor. These amounts may be credited towards Local Marketing obligations. Any franchisor-owned outlets in an area subject to a branding cooperative will pay into and vote in the same manner as franchised outlets. You will not be required to contribute more than 5% of your Gross Revenue in the aggregate for all branding cooperatives to which you belong.
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the establishment of a branding cooperative requires the consent of a specific percentage of franchisees within a particular area. 1-800-GOT-JUNK? must first authorize franchisees in a defined area to form a branding cooperative. Following this authorization, the consent of at least 65% of the involved franchisees is required before the branding cooperative can be established and fees imposed. This consent is calculated based on the gross revenue of each franchisee.
If the required percentage is met, franchisees may be required to pay into the branding cooperative, with fees potentially reaching up to 5% of their gross revenue in aggregate. These fees are determined by 1-800-GOT-JUNK? and paid as directed by the franchisor. The funds collected may be credited towards the franchisee's local marketing obligations, providing a potential benefit by consolidating marketing efforts and resources.
It's important to note that any franchisor-owned outlets within the branding cooperative's area will also participate by paying into the cooperative and voting in the same manner as franchised outlets. This ensures that all stakeholders are equally represented in the decision-making process. Franchisees will not be required to contribute more than 5% of their Gross Revenue in the aggregate for all branding cooperatives to which they belong.