What is the high-end estimated initial franchise fee for a 1-800-GOT-JUNK? franchise with 12 subterritories?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 7. Estimated Initial Investment
YOUR ESTIMATED INITIAL INVESTMENT (for a franchisee with 8 to 12 subterritories, with 8 being the minimum-sized new territory we offer)
Type of Expenditure Amount Method of Payment
When Due To Whom Payment Is to Be Made Low High Initial Franchise Fee (Notes 1 and 12) $65,000 $97,500 Lump sum At signing of Franchise Agreement. Initial Marketing Expense (Notes 2 and 12) $25,000 $25,000 Lump sum At signing of Franchise Agreement (then disbursed to 3rd Party Vendors) Computer Hardware and Software (Note 3) $1,500 $4,000 As arranged As incurred 3rd Party Vendors Miscellaneous Opening Costs (Note 4) $5,000 $15,000 As arranged As arranged 3rd Party Vendors Equipment (Vehicle Lease with dump body) Lease/purchase deposit
Source: Item 7 — Estimated Initial Investment (FDD pages 17–21)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the estimated initial franchise fee for a franchise with 8 to 12 subterritories ranges from $65,000 to $97,500. The high-end estimate of $97,500 is specifically for a franchise with 12 subterritories. This fee is paid in a lump sum when signing the Franchise Agreement. Note 1 clarifies that the initial franchise fee is $8,125 per subterritory. Therefore, for 12 subterritories, the calculation is 12 multiplied by $8,125, which equals $97,500. If a franchisee purchases more than 12 subterritories, they will pay $8,125 for each additional subterritory.
It is important to note that this initial franchise fee is generally non-refundable. However, 1-800-GOT-JUNK? may, at its sole discretion, allow a franchisee to finance up to half of the initial franchise fee for multiple subterritories. This financing can be paid in equal monthly installments for up to 24 months, without a down payment (except for the portion of the initial franchise fee not financed) and without interest, provided payments are made on time.
For example, if a franchisee purchases 8 subterritories and finances the initial franchise fee for 4 subterritories over 24 months, the monthly installments would be $1,354.17 (calculated as 4 x $8,125 = $32,500 ÷ 24 = $1,354.17). Late payments will incur interest at a rate of 24% per annum or the maximum rate permitted by law, if lower. Prospective franchisees should carefully consider these financing options and the implications of late payments.
In addition to the initial franchise fee, new 1-800-GOT-JUNK? franchisees should also budget for other initial investment costs, such as the initial marketing expense ($25,000), computer hardware and software ($1,500 to $4,000), and miscellaneous opening costs ($5,000 to $15,000).