Can the 1-800-GOT-JUNK? franchisor terminate the agreement if the franchisee fails to pay for supplies provided to the Franchised Business?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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 on account of one or more of the following defaults by Franchisee:
(a) failure to pay any sum when due to Franchisor, any Affiliate or nominee of Franchisor, Franchisee’s landlord, any governmental authority, the lessor of any Vehicle, supplier of any item of Supplies or other inventory, equipment or products to the Franchised Business, or any other third party providing any goods or services to the Franchised Business, and Franchisee fails to cure such non-payment within fifteen (15) days after written notice of such default has been delivered to Franchisee; or
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? has the right to terminate the franchise agreement if the franchisee fails to pay for supplies. Specifically, this applies if the franchisee fails to pay any sum when due to the supplier of any item of supplies or other inventory to the franchised business.
However, 1-800-GOT-JUNK? will provide a written notice of such default to the franchisee. The franchisee then has fifteen (15) days after the delivery of the notice to cure the non-payment.
If the franchisee does not cure the non-payment within the 15-day period, 1-800-GOT-JUNK? has the right to terminate the agreement. This is a fairly standard clause in franchise agreements, as timely payment for supplies is crucial for maintaining the operational integrity of the 1-800-GOT-JUNK? system.