factual

Does the Gross Revenue definition for a 1-800-GOT-JUNK? franchise include the sale of products?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

Gross Revenue is defined in the Franchise Agreement to mean “the entire amount of the sale price, whether for cash, credit, payment in kind (valued at fair market value) or otherwise, of all sales from or in connection with the operation of the Franchised Business (including, but not limited to, the sale of any Services or products from or in connection with the operation of the Franchised Business). No deductions shall be allowed from Gross Revenue except for the following: (a) sums collected by or on behalf of Franchisee for any duly constituted governmental authority on account of sales taxes, good and services taxes or other taxes imposed directly upon the sale of goods or services (or both) from the Franchised Business, provided that the amount of any such tax has in fact been paid or otherwise accounted for by Franchisee to the appropriate governmental authority; (b) the amount of any refund or credit given in respect of any services or products provided to a customer of the Franchised Business for which a refund of the whole or part of the purchase price is made or for which a credit is given as long as such refund or credit is given in 4899-8658-3815.1

accordance with Franchisor’s policies and procedures in relation to refunds set out in the Operations Manual; (c) amounts for uncollected or uncollectable credit accounts as long as such credit accounts are deemed uncollected or uncollectable in accordance with Franchisor’s policies and procedures in relation to uncollected or uncollectable credit accounts set out in the Operations Manual; and (d) amounts uncollected for a customer of the Franchised Business due to discount coupons that were approved for use in advance by Franchisor.

Source: Item 6 — Other Fees (FDD pages 11–17)

What This Means (2025 FDD)

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the definition of Gross Revenue includes revenue from the sale of products. Gross Revenue is used to calculate royalty fees and other payments to 1-800-GOT-JUNK?.

The Franchise Agreement defines Gross Revenue as the total income from all sales related to the Franchised Business. This includes cash, credit, or payment in kind, for all services or products. This means that any revenue generated from selling products or services through the 1-800-GOT-JUNK? franchise is subject to royalty and other fees.

There are a few exceptions to what is included in Gross Revenue. These exceptions include sales taxes collected for governmental authorities, refunds or credits given to customers, uncollected credit accounts, and amounts uncollected due to approved discount coupons. Business interruption insurance payments are included in the calculation of Gross Revenue.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.