Does 1-800-GOT-JUNK? generally offer financing to franchisees?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not generally offer financing. However, we may, in our sole discretion, allow the initial franchise fee with respect to some of the subterritories to be made in equal monthly installments without interest if payments are timely made. Installment arrangements will be described in Schedule B of the Franchise Agreement. Outstanding amounts may be pre-paid at any time without penalty. Late payments will incur interest from and after their respective due dates until paid in full at the rate of 24% per annum or at such other rate as we may specify in writing from time to time or the maximum rate permitted by law if lower. All owners of an entity franchisee must personally guarantee payment of initial franchise fees made through installment arrangements.
We may allow you to operate or service customers in subterritories for which you are paying the initial fee in installments, as long as payments are timely made. However, we reserve the right to not allow you to operate or service customers in any subterritories until you pay the initial fees for those subterritories in full.
Upon material default of installment payments we may, at our option and in our sole discretion, revise your Territory to remove any subterritories for which installment payments are in default, or terminate the Franchise Agreement. Your potential liabilities upon default also include acceleration of amounts due, and payment of collection costs. You are not required to waive defenses or other legal rights, and are not barred from asserting any defenses.
We do not intend to sell, assign, or discount to a third party all or any part of the financial arrangement.
We do not guarantee any debts, leases or other obligations for you. While not obligated to do so, we may, in our discretion, introduce you to third party financing sources that may, if you meet their qualifications, supply financing options for items required as part of the initial investment.
Source: Item 10 — Financing (FDD pages 24–33)
What This Means (2025 FDD)
According to the 2025 FDD, 1-800-GOT-JUNK? does not generally offer financing to franchisees. However, 1-800-GOT-JUNK? may, at its sole discretion, allow the initial franchise fee for some subterritories to be paid in equal monthly installments without interest, provided payments are made on time. The specifics of any installment arrangements will be detailed in Schedule B of the Franchise Agreement. Franchisees can prepay outstanding amounts at any time without incurring a penalty.
Late payments on these installments will incur interest from the due date until fully paid, at a rate of 24% per annum, or another rate specified in writing by 1-800-GOT-JUNK?, or the maximum rate permitted by law if lower. All owners of an entity franchisee must personally guarantee the payment of initial franchise fees made through installment arrangements.
1-800-GOT-JUNK? may allow franchisees to operate in subterritories for which they are paying the initial fee in installments, as long as payments are current. However, 1-800-GOT-JUNK? reserves the right to restrict operation in any subterritories until the initial fees are paid in full. Upon a material default in installment payments, 1-800-GOT-JUNK? may revise the territory to remove subterritories for which payments are in default or terminate the Franchise Agreement. Potential liabilities upon default include acceleration of amounts due and payment of collection costs. Franchisees are not required to waive defenses or other legal rights and are not barred from asserting any defenses. 1-800-GOT-JUNK? does not intend to sell, assign, or discount the financial arrangement to a third party and does not guarantee any debts, leases, or other obligations for franchisees. While not obligated, 1-800-GOT-JUNK? may introduce franchisees to third-party financing sources that may offer financing options for required items, subject to meeting their qualifications.