Does a 1-800-GOT-JUNK? franchisee receive an exclusive territory?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Before signing the Franchise Agreement, we will determine your protected territory (“Territory”) by developing geographic areas with a population between 62,500 - 75,000 based on the most recently published data from the U.S. Census Bureau (or such other source as we may indicate to you). Your Territory will consist of a minimum of eight of these areas, and each one will be considered a “subterritory.”
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, the non-exclusivity extends only to our reserved rights with respect to national accounts as described below. Subject to our rights with respect to national accounts described below, so long as you are in full compliance with the terms and conditions of your Franchise Agreement, we will not establish, operate or grant to anyone else a franchise to establish or operate a 1-800-GOT-JUNK? business in your Territory. If you are in default under the Franchise Agreement, we may reduce the size of the Territory, remove any protection provided in the Territory (allowing us to franchise or operate other 1-800-GOT-JUNK? businesses in the Territory), or both.
We, for our self and for our affiliates, expressly reserve the right to:
(a) offer for sale or sell the Services or other similar services using some or all of the Marks from any location or by any means whatsoever outside of your Territory;
(b) offer for sale or sell the Services or other similar services using any trade names or trademarks other than the Marks from any location or by any means whatsoever either inside or outside of your Territory;
(c) operate, establish, or grant to someone else a license or franchise to operate or establish, one or more businesses which offer for sale or sell any services which are the same as or similar to the Services using some or all of the Marks or using any trade names or trademarks other than the Marks at or from any location whatsoever outside of your Territory;
(d) operate, establish, or grant to someone else a license or franchise to operate or establish, one or more businesses which offer for sale or sell any services which are the same as or similar to the Services using any trade names or trademarks other than the Marks at or from any location whatsoever either inside or outside your Territory, although we do not currently or plan to do so;
(e) distribute, offer for sale, sell or grant to someone else the right or franchise to distribute, offer for sale or sell any services which are the same as or similar to the Services using some or all of the Marks or using any trade names or trademarks other than the Marks at any location whatsoever either inside or outside of your Territory, by means of other channels of distribution other than the Franchised Business, including through retail outlets, or as part of or in combination with any retail establishments;
(f) distribute, offer for sale, sell or designate any entity to distribute, offer for sale or sell the Services to National Account Customers, either inside or outside of your Territory; and 4899-8658-3815.1
(g) purchase or be purchased by, or merge or combine with, competing businesses wherever located, including a chain of company-owned or franchised locations that compete directly with the Franchised Business.
You are prohibited from soliciting customers or providing services to premises located outside of your Territory, including through distribution channels such as the internet, telemarketing or other direct marketing.
You must operate the Franchised Business exclusively from the Franchised Location, and in full compliance with any applicable lease and the Franchise Agreement and Operations Manual. Your Franchised Location may be located anywhere within your Territory. We do not provide you with assistance in selecting or securing your Franchised Location, and we do not approve the Franchised Location. You may relocate the Franchised Location only after prior written notice to us, and at your sole cost and expense.
Source: Item 12 — Territory (FDD pages 33–36)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. The Territory is determined before signing the Franchise Agreement, using geographic areas with populations between 62,500 and 75,000 based on the most recent U.S. Census Bureau data. A Territory consists of a minimum of eight of these areas, each considered a "subterritory." While franchisees don't have exclusive rights within their territory, 1-800-GOT-JUNK? states that as long as the franchisee is compliant with the Franchise Agreement, the company will not establish or grant another franchise to operate a 1-800-GOT-JUNK? business in the franchisee's Territory. However, this protection can be removed if the franchisee defaults on the Franchise Agreement, allowing 1-800-GOT-JUNK? to franchise or operate other businesses in the Territory.
1-800-GOT-JUNK? retains several rights, including the ability to offer services outside the franchisee's Territory, offer similar services under different trademarks either inside or outside the Territory, and operate or franchise businesses offering similar services outside the Territory. They also reserve the right to distribute services through other channels of distribution, such as retail outlets, inside or outside the Territory. Furthermore, 1-800-GOT-JUNK? has the exclusive right to service National Account Customers, which are customers with multiple locations inside or outside the franchisee's Territory.
Franchisees are restricted from soliciting customers or providing services outside their designated Territory, including through online or direct marketing channels. The franchised business must operate exclusively from the Franchised Location within the Territory, and the franchisee is responsible for selecting and securing this location without assistance from 1-800-GOT-JUNK?. Relocation of the Franchised Location is permitted only with prior written notice and at the franchisee's expense. These stipulations regarding territory and customer solicitation are important for prospective franchisees to consider, as they define the boundaries within which they can operate and the potential for competition from both the franchisor and other franchisees.