To whom is the initial franchise fee for 1-800-GOT-JUNK? paid?
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 Low High Initial Franchise Fee (Notes 1 and 12) $65,000 $97,500 Lump sum At signing of Franchise Agreement.
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.)
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.
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 paid to the franchisor, 1-800-GOT-JUNK?. This fee ranges from $65,000 to $97,500, depending on the number of subterritories included in the franchise agreement. The low end of the estimate covers a franchise with eight subterritories, while the high end covers a franchise with twelve subterritories. Each additional subterritory beyond twelve costs $8,125.
The initial franchise fee is due in a lump sum at the signing of the Franchise Agreement. This means that a prospective franchisee must have the full amount of the initial franchise fee available at the time of signing.
1-800-GOT-JUNK? may, at its 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. 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.
It is important for prospective franchisees to carefully consider the initial franchise fee and ensure they have sufficient capital to cover this expense, as well as other initial investment costs. Understanding the payment terms and any potential financing options offered by 1-800-GOT-JUNK? is also crucial for financial planning.