Can the guarantee agreement for a 1-800-GOT-JUNK? franchise be modified or waived?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ACKNOWLEDGMENT: It is agreed that the foregoing state law addendum supersedes any inconsistent portion of the Franchise Agreement dated the _____ day of _________________, 20, and of the Franchise Disclosure Document, but only to the extent they are then valid requirements of an applicable and enforceable state law, and for only so long as the state law remains in effect.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, the guarantee agreement for a 1-800-GOT-JUNK? franchise cannot be waived in most cases. However, the Virginia Addendum to the Franchise Disclosure Document states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives. This provision supersedes any other term in any document executed in connection with the franchise, but only to the extent required by valid applicable state law and for as long as the state law remains in effect.
This means that while the standard guarantee agreement is generally binding, the specific laws of certain states, like Virginia, may provide franchisees with additional protections that cannot be waived through standard contractual clauses. These state-specific addenda are designed to ensure that franchisees retain their legal rights and recourse, particularly in cases of misrepresentation or fraud.
Prospective 1-800-GOT-JUNK? franchisees should carefully review any state-specific addenda included in their Franchise Disclosure Document and understand how these addenda modify the standard franchise agreement. It is also advisable to seek legal counsel to fully understand their rights and obligations under both the franchise agreement and applicable state laws. This is especially important in states with franchise-specific laws that offer additional protections to franchisees.