Are the future required payments quantifiable as of the date of the 1-800-GOT-JUNK? disclosure document?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
We may in the future require you to pay us and our affiliates for specific products and services that we provide or that we collect on behalf of third-party suppliers. These may be products and services that we currently require franchisees to purchase, or they may be newly required products or services pursuant to our reserved rights to modify the System. These required payments cannot be quantified as of the date of this disclosure document because they are currently unknown or unanticipated; but in any event will be applicable for products and services that we reasonably deem are necessary or beneficial for the operation of the System, are valuable and desired by franchisees or customers, or are made necessary by future developments such as changes in technology, partnerships with new vendors or suppliers, or changes in customer preferences. Once imposed, these fees may increase from time to time during the term of the Franchise Agreement generally in proportion to our cost increases to provide the product or service.
Unless otherwise stated, all fees are uniformly imposed by and payable to 1-800-GOT-JUNK? and are non-refundable.
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, some future required payments are not quantifiable as of the disclosure date. While many fees are clearly defined with specific amounts, due dates, and remarks, certain future products and services that 1-800-GOT-JUNK? may require franchisees to purchase cannot be quantified in advance. These charges are based on then-current prices published to franchisees upon purchase or billing.
1-800-GOT-JUNK? reserves the right to designate themselves or their affiliates as the suppliers for any products and services. This means that franchisees may be obligated to purchase new, yet-to-be-determined products or services, making it difficult to project costs accurately. The lack of upfront quantification introduces a degree of uncertainty for prospective franchisees, as they cannot precisely forecast all potential expenses.
Furthermore, 1-800-GOT-JUNK? may in the future require franchisees to pay for specific products and services provided by them or collected on behalf of third-party suppliers. These required payments cannot be quantified as of the date of the disclosure document because they are currently unknown or unanticipated. However, these will be applicable for products and services that 1-800-GOT-JUNK? reasonably deems necessary or beneficial for the operation of the System, are valuable and desired by franchisees or customers, or are made necessary by future developments such as changes in technology, partnerships with new vendors or suppliers, or changes in customer preferences. Once imposed, these fees may increase from time to time during the term of the Franchise Agreement generally in proportion to 1-800-GOT-JUNK?'s cost increases to provide the product or service.
It is important to note that specified dollar amounts for various fees are subject to annual inflation adjustments based on the Consumer Price Index. This means that while the initial fee amounts are known, they may increase over time due to inflation. Prospective franchisees should factor in potential cost increases when evaluating the financial feasibility of the 1-800-GOT-JUNK? franchise.