Can 1-800-GOT-JUNK? franchisees face competition from other franchisees?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 may face competition from other franchisees. While 1-800-GOT-JUNK? aims to provide a protected territory, it is explicitly stated that the territory is not exclusive. The defined territory consists of geographic areas with populations between 62,500 and 75,000, based on the most recently published data from the U.S. Census Bureau, with a minimum of eight such areas considered as subterritories.
Despite this territorial definition, 1-800-GOT-JUNK? reserves certain rights that could lead to competition within a franchisee's territory. Specifically, 1-800-GOT-JUNK? retains the right to solicit customers located anywhere in the franchisee's territory to develop them as National Account Customers, and may designate other franchisees to service these National Account Customers.
Furthermore, if a franchisee defaults under the Franchise Agreement, 1-800-GOT-JUNK? has the right to reduce the size of the territory or remove any protection, which would allow 1-800-GOT-JUNK? to franchise or operate other 1-800-GOT-JUNK? businesses in the territory. This lack of exclusivity and the potential for encroachment by National Accounts or other franchisees should be carefully considered by prospective franchisees.