If a 1-800-GOT-JUNK? franchisee fails to pay a sum when due, how many days does the franchisee have to cure the non-payment after receiving written notice?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
failure to pay any sum when due to Franchisor, any Affiliate or nominee of Franchisor,
Franchisee’s landlord, any governmental authority, the lessor of any Vehicle, supplier of
any item of Supplies or other inventory, equipment or products to the Franchised Business,
or any other third party providing any goods or services to the Franchised Business, and
Franchisee fails to cure such non-payment within fifteen (15) days after written notice of
such default has been delivered to Franchisee; or
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, a franchisee has a 15-day cure period if they fail to pay any sum when due. This includes payments to 1-800-GOT-JUNK?, its affiliates, the franchisee's landlord, governmental authorities, vehicle lessors, suppliers, or any third party providing goods or services to the franchised business. The 15-day period begins after the franchisee receives written notice of the non-payment default.
It is important to note that this cure period applies specifically to non-payment defaults. Other types of defaults related to obligations within the Franchise Agreement have a longer cure period of 30 days. However, if a franchisee has received a notice of default on three or more occasions within a 12-month period, 1-800-GOT-JUNK? can terminate the agreement immediately upon written notice, without providing an opportunity to cure the current default.
This policy highlights the importance of maintaining timely payments to all relevant parties in the 1-800-GOT-JUNK? franchise system. Failure to do so can quickly lead to termination of the franchise agreement, especially in cases of repeated payment issues. Prospective franchisees should ensure they have sufficient financial resources and systems in place to manage payments effectively and avoid defaults.