Can 1-800-GOT-JUNK? franchisees face competition from outlets that the franchisor owns?
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.
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
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 outlets that 1-800-GOT-JUNK? owns. While franchisees are granted a protected territory, it is not an exclusive one. This means that 1-800-GOT-JUNK? retains the right to operate its own outlets or use other distribution channels within a franchisee's territory.
This non-exclusivity is limited to 1-800-GOT-JUNK?'s rights concerning national accounts. As long as the franchisee is compliant with the Franchise Agreement, 1-800-GOT-JUNK? will not establish, operate, or grant another franchise within the franchisee's territory. However, if a franchisee defaults on the Franchise Agreement, 1-800-GOT-JUNK? has the right to reduce the territory size or remove any territorial protections, which would allow them to franchise or operate other 1-800-GOT-JUNK? businesses in that area.
1-800-GOT-JUNK? also reserves the right to sell services using their trademarks outside the franchisee's territory, sell similar services under different trademarks inside or outside the territory, and operate businesses offering similar services outside the territory. They can also distribute services through other channels, such as retail outlets, inside or outside the territory. Furthermore, 1-800-GOT-JUNK? can service National Account Customers, who have multiple locations both inside and outside the franchisee's territory. These rights allow 1-800-GOT-JUNK? to maintain flexibility in serving customers and expanding its brand, but it also means that franchisees may face competition from various sources, including the franchisor itself.