For 1-800-GOT-JUNK? franchisees in Maryland, what section of the Franchise Agreement is entirely deleted?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND
ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, FRANCHISE DISCLOSURE QUESTIONNAIRE AND CERTIFICATION, AND RELATED AGREEMENTS
This Addenda is an amendment to the Disclosure Document and Franchise Agreement.
The following modifications are made to the Disclosure Document and the Franchise Agreement:
Based upon the franchisor’s financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the Franchise Agreement and the outlet is opened. Items 5 and 7 of the Disclosure Document and Section 3.1 and Schedule B of the Franchise Agreement are amended accordingly. Item 17 of the Disclosure Document and any provision in the Franchise Agreement providing for termination upon your bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, there are no sections of the 1-800-GOT-JUNK? Franchise Agreement that are entirely deleted for franchisees in Maryland. However, the Maryland Addendum does modify certain sections of the agreement.
Specifically, due to the franchisor's financial condition, the Maryland Securities Commissioner requires a financial assurance. As a result, all initial fees and payments owed by 1-800-GOT-JUNK? franchisees in Maryland are deferred until the franchisor completes its pre-opening obligations and the outlet is opened. This is reflected in amendments to Items 5 and 7 of the Disclosure Document and Section 3.1 and Schedule B of the Franchise Agreement.
Additionally, Item 17 of the Disclosure Document, along with any provision in the Franchise Agreement that allows for termination upon the franchisee's bankruptcy, may not be enforceable under federal bankruptcy law. This means that standard clauses regarding termination due to bankruptcy might not apply to 1-800-GOT-JUNK? franchisees in Maryland, offering some protection to the franchisee in case of financial distress.