Can the 1-800-GOT-JUNK? franchisor terminate the agreement if the franchisee does anything that causes the business to be closed for five business days in any thirty-day period?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
17.3 Right of Termination Without Prior Notice of Default. Prior to expiration of the Term or any Renewal Term and notwithstanding anything otherwise contained in this Agreement, Franchisor shall have the right to terminate this Agreement and the right and license granted hereby to Franchisee without prior notice to Franchisee upon the occurrence of any of the following default events which are deemed non-curable:
(a) Franchisee fails to commence operation of the Franchised Business on the Scheduled Opening Date;
(b) Franchisee does anything or omits to do anything which causes the Franchised Business to be closed for business or otherwise not operating in full compliance with this Agreement for five (5) consecutive Business Days or any five (5) Business Days in any thirty (30) consecutive day period, without the prior written consent of Franchisor;
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the franchisor can terminate the franchise agreement without prior notice if the franchisee does something that causes the business to be closed for five consecutive business days, or for any five business days within a thirty-day period. This is contingent on the franchisee not obtaining prior written consent from 1-800-GOT-JUNK?. This is considered a non-curable default.
This clause in the franchise agreement means that a 1-800-GOT-JUNK? franchisee must maintain consistent operations. Any event causing the business to close for the specified duration, without prior approval, constitutes grounds for immediate termination. This could include unforeseen circumstances such as equipment failure, staffing issues, or local emergencies.
It is important to note that the termination is at the discretion of 1-800-GOT-JUNK?. While the closure triggers the right to terminate, the franchisor may choose not to exercise that right. A prospective franchisee should clarify the circumstances under which 1-800-GOT-JUNK? would likely enforce this clause, and what types of events might warrant prior written consent to close the business. Franchisees should also confirm if there are any specific procedures to follow when requesting such consent to ensure compliance and avoid potential termination.