When is the initial franchise fee due for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is to Be Made |---|---|---|---|---| | Initial Franchise Fee (Notes 1 and 12) | $65,000 $97,500 | Lump sum | At signing of Franchise Agreement. |
Notes:
1) This estimate represents the initial franchise fee of $8,125 per subterritory, with the low estimate being a franchise with eight subterritories and the high estimate being a franchise with 12 subterritories. If your franchise is more than 12 subterritories, you will pay $8,125 for each additional subterritory.
- We will only refund the initial franchise fee and Initial Marketing Expense (without interest) if we do not approve your application. Otherwise, all fees payable to us are nonrefundable under any circumstances. Refundability of fees paid to third parties, however, will depend on your negotiation with each party. Neither 1-800-GOT-JUNK? nor its affiliate offers financing of all or part of the initial investment, except we may, at our sole discretion, permit up to half of the initial franchise fee for multiple subterritories to be paid in equal monthly installments for up to 24 months, with no down payment (except the portion of the initial franchise fee not financed must be paid at the time you sign the franchise agreement), and without interest if payments are made timely. The amount of your monthly payment will vary depending on the number of subterritory fees financed. For example, if you purchase 8 subterritories and finance the initial franchise fee for 4 subterritories for 24 months, your monthly installments would be $1,354.17 [4 x $8,125 = $32,500 ÷ 24 = $1,354.17]. Late payments will incur interest from and after their respective due dates until paid in full at the rate of 24% per annum or such other rate as we may specify in writing from time to time or the maximum rate permitted by law if lower. (See Item 5 for additional details regarding the initial franchise fee, and Item 10 for additional details regarding financing of subterritory initial fees.)
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 initial franchise fee is due at the signing of the Franchise Agreement. The initial franchise fee ranges from $65,000 to $97,500, depending on the number of subterritories purchased. The low estimate of $65,000 is for a franchise with eight subterritories, while the high estimate of $97,500 is for a franchise with 12 subterritories. For franchises with more than 12 subterritories, the franchisee will pay $8,125 for each additional subterritory. This fee is paid in a lump sum.
1-800-GOT-JUNK? offers limited financing options for the initial franchise fee. Specifically, for multiple subterritories, up to half of the initial franchise fee may 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 if payments are made timely. Late payments will incur interest from the due date until paid in full at a rate of 24% per annum, or the maximum rate permitted by law if lower.
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). It is important to note that the initial franchise fee and Initial Marketing Expense are only refundable if 1-800-GOT-JUNK? does not approve the franchise application. Otherwise, all fees payable to 1-800-GOT-JUNK? are nonrefundable under any circumstances.