If a competent authority requires a different notice period, does the 1-800-GOT-JUNK? agreement automatically adjust?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
FRANCHISOR:
1-800-GOT-JUNK?
LLC
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the franchise agreement may be superseded by state law under certain conditions. Specifically, several state-specific addenda outline that modifications to the 1-800-GOT-JUNK? Franchise Disclosure Document and Franchise Agreement may occur to the extent required by valid applicable state law. This means that if a state law has requirements that are inconsistent with the franchise agreement, the state law will take precedence, but only to the extent of the inconsistency and only for as long as the state law remains in effect. These addenda are applicable in Minnesota, New York, Virginia, Rhode Island, and Wisconsin.
For a prospective 1-800-GOT-JUNK? franchisee, this is important because the terms of the franchise agreement could be altered or superseded by state laws, depending on the franchisee's location. This could include variations in termination clauses, notice periods, or other legal requirements. The franchisee needs to be aware of the specific state laws in their area that could affect the franchise agreement.
For example, the Wisconsin addendum notes that the Wisconsin Fair Dealership Law applies to most franchise agreements in the state and prohibits termination, cancellation, nonrenewal, or substantial change in the competitive circumstances of a dealership agreement without good cause. This law requires that 1-800-GOT-JUNK? provide 90 days' prior written notice of the proposed termination, and the dealer has 60 days to cure the deficiency. The 1-800-GOT-JUNK? Disclosure Document and Franchise Agreement are modified to state that the Wisconsin Fair Dealership Law supersedes any inconsistent provisions in the Franchise Agreement to the extent applicable.
It is important for potential franchisees to carefully review the state-specific addenda (Exhibit I) in conjunction with the Franchise Agreement to understand how local laws may impact their rights and obligations. They should also consult with legal counsel to ensure they are fully aware of the implications of these state-specific modifications.