What is the initial franchise fee per subterritory for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee is $8,125 per subterritory. We require a minimum purchase of eight subterritories, for a total minimum initial franchise fee of $65,000. If your Franchised Business has twelve subterritories, the initial franchise fee will be $97,500. The initial franchise fee is payable to us in a lump sum when you sign the Franchise Agreement. We will only refund the entire initial franchise 4899-8658-3815.1
fee paid to date (without interest) if we do not approve your application. Except as described in this disclosure document, each portion of the initial franchise fee is fully earned upon receipt.
In the year ended December 31, 2024, we sold one franchise to an existing franchisee for an initial franchise fee of $56,875, which amount was deferred until the end of one year of operations to allow the franchisee time to develop the new market. Existing franchisees paid fees to expand their territories ranging from $2,000 to $25,000.
We reserve the right to charge higher or lower initial fees than those disclosed above for a particular territory. Some of the factors that may lead us to charge more are if a subterritory had been previously serviced and has a developed market, or if the demographics of the particular subterritory are such that it would be particularly suited for a 1-800-GOT-JUNK? franchise. Some of the factors that may lead us to charge less are if a subterritory has been difficult to develop in the past or as an incentive to encourage a franchisee to purchase additional subterritories.
If you are granted multiple subterritories within which to operate the Franchised Business, we may (in our sole discretion) allow you to pay the initial franchise fee with respect to some of the subterritories in equal monthly installments for a specified period. If we do, we may also allow you to operate or service customers in subterritories for which you are paying the initial fee in installments. However, we may not allow you to operate or service customers in any subterritories until you pay the initial fees for those subterritories in full.
Source: Item 5 — Initial Fees (FDD pages 10–11)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the initial franchise fee is $8,125 per subterritory. 1-800-GOT-JUNK? requires a minimum purchase of eight subterritories, which brings the minimum initial franchise fee to $65,000. If a franchisee purchases twelve subterritories, the initial franchise fee will total $97,500. This fee is payable in a lump sum when the Franchise Agreement is signed. The document notes that 1-800-GOT-JUNK? will only refund the entire initial franchise fee if they do not approve the application. Otherwise, the fee is fully earned upon receipt.
1-800-GOT-JUNK? reserves the right to adjust initial fees based on factors such as whether a subterritory has been previously serviced and has a developed market, or if the demographics of the subterritory are particularly suited for a 1-800-GOT-JUNK? franchise. Conversely, the fee may be reduced if a subterritory has been difficult to develop or as an incentive to purchase additional subterritories. This discretion allows 1-800-GOT-JUNK? to respond to market conditions and incentivize franchise growth.
For franchisees granted multiple subterritories, 1-800-GOT-JUNK? may allow the initial franchise fee for some subterritories to be paid in equal monthly installments over a specified period. Even with this installment option, 1-800-GOT-JUNK? may not allow franchisees to operate or service customers in any subterritories until the initial fees for those subterritories are paid in full. This policy protects 1-800-GOT-JUNK?'s interests by ensuring fees are paid before services are rendered in a given area.
Notably, 1-800-GOT-JUNK? may permit up to half of the initial franchise fee for multiple subterritories to 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. For instance, financing the initial franchise fee for 4 subterritories (out of 8 purchased) over 24 months would result in monthly installments of $1,354.17. Late payments, however, will incur interest at a rate of 24% per annum or the maximum rate permitted by law, if lower.