What are a 1-800-GOT-JUNK? franchisee's obligations upon termination or non-renewal of the franchise agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Provision Section in Franchise Agreement Summary i. Your obligations on termination/non-renewal 17.8; 18; 21.2 Discontinue operations; payment of all accounts by bank draft; return all items belonging to Franchisor; transfer telephone numbers; immediately discontinue use of the Marks; comply with the non- competition provisions; within 60 days either sell the dump body truck boxes to another System franchisee or destroy them. We may purchase some or all of the assets of the Franchised Business at fair market value (determined by agreement or appraisal) if the franchise terminates or expires.
Source: Item 16 — Restrictions On What the Franchisee May Sell (FDD pages 38–42)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, franchisees have specific obligations upon termination or non-renewal of their franchise agreement. These obligations are detailed in Section 17.8, 18, and 21.2 of the franchise agreement.
Upon termination or non-renewal, a 1-800-GOT-JUNK? franchisee must immediately discontinue operations of the business. They are required to ensure all accounts are paid via bank draft. Additionally, the franchisee must return all items that belong to the franchisor and transfer all telephone numbers associated with the business. The franchisee is also obligated to immediately stop using 1-800-GOT-JUNK?'s marks and comply with the non-competition provisions outlined in the agreement.
Furthermore, within 60 days of termination or non-renewal, the franchisee must either sell the dump body truck boxes to another 1-800-GOT-JUNK? franchisee or destroy them. It is also noted that 1-800-GOT-JUNK? has the option to purchase some or all of the assets of the franchised business at fair market value, which will be determined either by mutual agreement or through an appraisal process if the franchise terminates or expires.