To whom is the initial franchise fee paid 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 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.)
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 directly to the franchisor. The initial franchise fee ranges from $65,000 to $97,500, depending on the number of subterritories included in the franchise agreement. The low end of this range covers a franchise with eight subterritories, while the high end covers a franchise with twelve subterritories. Each additional subterritory beyond twelve costs $8,125. This fee is due in a lump sum at the signing of the Franchise Agreement.
1-800-GOT-JUNK? may, at its sole discretion, allow a franchisee to finance up to half of the initial franchise fee for multiple subterritories. This financing can 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 on time. 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. Late payments will incur interest at a rate of 24% per annum or the maximum rate permitted by law.
It is important to note that the initial franchise fee is generally nonrefundable, except if 1-800-GOT-JUNK? does not approve the franchise application. In that specific case, the initial franchise fee and Initial Marketing Expense will be refunded without interest. Fees paid to third parties are subject to the refund policies negotiated with those parties. Prospective franchisees should carefully consider these payment terms and refund conditions before signing the franchise agreement.