factual

If the Franchisor owns outlets in an area subject to a Branding Cooperative, how do they participate in the 1-800-GOT-JUNK? cooperative?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

Any franchisor-owned outlets in an area subject to a branding cooperative will pay into and vote in the same manner as franchised outlets. You will not be required to contribute more than 5% of your Gross Revenue in the aggregate for all branding cooperatives to which you belong.

Source: Item 6 — Other Fees (FDD pages 11–17)

What This Means (2025 FDD)

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, if the franchisor owns outlets in an area subject to a branding cooperative, they will participate in the cooperative in the same manner as franchised outlets. This means that any franchisor-owned outlets will pay into the branding cooperative and have voting rights, just like the franchised locations.

This arrangement ensures that the franchisor's corporate-owned stores are aligned with the interests of the franchisees in the branding cooperative. By paying into the cooperative, the franchisor contributes financially to the local marketing efforts. By having voting rights, the franchisor gets a say in how the cooperative is run and how its funds are spent. This can help ensure that the cooperative's activities benefit all members, including both franchised and company-owned outlets.

It's worth noting that the branding cooperative fee can be up to 5% of gross revenue in aggregate, and it's only imposed if 1-800-GOT-JUNK? authorizes franchisees in a particular area to establish a branding cooperative and if 65% of the involved franchisees (calculated on a gross revenue basis) consent to paying the fees. Franchisees will not be required to contribute more than 5% of their Gross Revenue in the aggregate for all branding cooperatives to which they belong.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.