If a 1-800-GOT-JUNK? franchisee defaults on an obligation that cannot be cured within 30 days, what conditions must they meet to avoid termination?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
failure to comply with any other obligation of Franchisee contained in this Agreement or any other agreement between Franchisee and Franchisor or any Affiliate or nominee of Franchisor, or any other failure to be in good standing with Franchisor, including for failure to conduct the Franchised Business in a businesslike manner, and Franchisee fails to cure such default within thirty (30) days after written notice of the default has been delivered to 4908-1371-6037.2
Franchise Agreement
4/22
Franchisee; provided, however, that if the nature of such default is such that it cannot be cured within a thirty (30) day period, and Franchisee takes reasonable action to cure such default immediately upon receiving such notice and diligently continues to do so, then Franchisee shall have such additional period of time as is reasonably necessary to cure such default.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, if a franchisee fails to comply with any obligation outlined in the Franchise Agreement, or any other agreement with 1-800-GOT-JUNK?, and the default cannot be resolved within 30 days, the franchisee can avoid termination by meeting specific conditions.
Specifically, the franchisee must take reasonable action to begin curing the default immediately upon receiving notice and diligently continue to do so. If these actions are taken, the franchisee will be granted the additional time reasonably necessary to fully resolve the default.
This clause protects 1-800-GOT-JUNK? franchisees from immediate termination for complex issues that require more than 30 days to resolve, provided they demonstrate a commitment to rectifying the situation. It is important for prospective franchisees to understand the types of defaults that might occur and what constitutes 'reasonable action' in the eyes of 1-800-GOT-JUNK? to ensure compliance and avoid potential termination.