Does the 1-800-GOT-JUNK? General Security Agreement specify any requirements for the Debtor to provide financial statements to the Secured Party?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Such community property includes the income of the marital community and the assets of the marital community. I acknowledge that the Guarantee is a community obligation, and I consent to my spouse’s participation in the Guarantee. Except to the extent of my interest in the community property and as long as my statements herein remain accurate, I understand that my signature below does not make me personally liable under the Guarantee or give Franchisor the right to collect against my separate property. I agree and warrant to the Franchisor that during the time that the Guarantee of my spouse, that I will not convert any of our community property, or any of my spouse’s separate property, to my separate property and that any such conversions shall be void. [I have reviewed the financial statement that my spouse has provided to the Franchisor and acknowledge and confirm the accuracy of my spouse’s representations contained in said statement as to the community and separate nature of the assets and liabilities set forth therein.]
EXHIBIT G General Security Agreement
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the General Security Agreement for 1-800-GOT-JUNK? does not explicitly state any requirements for the Debtor (franchisee) to provide financial statements to the Secured Party (1-800-GOT-JUNK? LLC). However, Exhibit G references a General Security Agreement, and Exhibit F refers to a Guarantee Agreement, where a spouse may acknowledge reviewing a financial statement provided by their spouse to the Franchisor. This suggests financial information may be involved in related agreements.
While the General Security Agreement itself, as outlined in the provided excerpts, focuses on the security interest granted to 1-800-GOT-JUNK? LLC in the Debtor's assets (collateral) to secure obligations under the Franchise Agreement, it does not detail specific requirements for periodic financial reporting. The agreement covers aspects such as the obligations secured, the security interest in the Debtor's assets, and general terms like amendment and governing law.
Prospective 1-800-GOT-JUNK? franchisees should carefully review all agreements referenced in Item 22, including the Franchise Agreement, General Security Agreement, and any related guarantees, to fully understand their financial reporting obligations. It would be prudent to ask 1-800-GOT-JUNK? directly about any requirements to submit financial statements, either as part of the General Security Agreement or any other ongoing obligation related to the franchise agreement.