Can 1-800-GOT-JUNK? grant a franchise to someone else to operate a similar business outside my territory using trade names other than the 1-800-GOT-JUNK? marks?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) operate, establish, or grant to someone else a license or franchise to operate or establish, one or more businesses which offer for sale or sell any services which are the same as or similar to the Services using some or all of the Marks or using any trade names or trademarks other than the Marks at or from any location whatsoever outside of your Territory;
(d) operate, establish, or grant to someone else a license or franchise to operate or establish, one or more businesses which offer for sale or sell any services which are the same as or similar to the Services using any trade names or trademarks other than the Marks at or from any location whatsoever either inside or outside your Territory, although we do not currently or plan to do so;
Source: Item 12 — Territory (FDD pages 33–36)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? has the right to grant franchises to others to operate similar businesses outside of your designated territory, even if they use trade names or trademarks that are different from the 1-800-GOT-JUNK? marks.
Specifically, 1-800-GOT-JUNK? reserves the right to "operate, establish, or grant to someone else a license or franchise to operate or establish, one or more businesses which offer for sale or sell any services which are the same as or similar to the Services using any trade names or trademarks other than the Marks at or from any location whatsoever outside of your Territory." This means that while you may be protected from other 1-800-GOT-JUNK? franchises operating within your territory, 1-800-GOT-JUNK? can authorize other businesses with different branding to offer similar services outside your territory.
This is a standard practice in franchising, allowing franchisors to explore different branding or service models without directly competing with their existing franchisees under the same brand. However, it's important to understand that 1-800-GOT-JUNK? could potentially authorize a business that offers similar services in a neighboring territory under a different name, which could indirectly impact your business.
1-800-GOT-JUNK? also retains the right to sell its services or similar services using different trade names or trademarks, both inside and outside your territory. While the document states that 1-800-GOT-JUNK? does not currently or plan to do so, this right is reserved. This could allow 1-800-GOT-JUNK? to test new service offerings or brands in your area without it being considered a breach of your franchise agreement.