How is the initial marketing expense for a 1-800-GOT-JUNK? franchise disbursed?
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. Initial Marketing Expense (Notes 2 and 12) $25,000 $25,000 Lump sum At signing of Franchise Agreement (then disbursed to 3rd Party Vendors) Computer Hardware and Software (Note 3) $1,500 $4,000 As arranged As incurred 3rd Party Vendors Miscellaneous Opening Costs (Note 4) $5,000 $15,000 As arranged As arranged 3rd Party Vendors Equipment (Vehicle Lease with dump body) Lease/purchase deposit (Note 5) $10,000 $30,000 Monthly Lease Monthly Dealer/Seller/ Lessor/Finance Company Real Estate/Rent (Note 6) $1,200 $5,000 As arranged As arranged Landlord/Lessor Local Marketing* – 3 months (Note 7) $3,600 $5,000 As arranged As incurred This money is spent and directed by the Franchisee on advertising in their local market. See Sections 10.1 and 10.2 of the Franchise Agreement. This expenditure is paid to third party authorized vendors.
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 marketing expense ranges from $25,000 to $25,000. This lump sum payment is due at the signing of the Franchise Agreement and is then disbursed to 3rd Party Vendors. 1-800-GOT-JUNK? will use this expense at its discretion to market and promote the Franchised Business prior to and/or during the first 6 months of operation.
In addition to the initial marketing expense, 1-800-GOT-JUNK? requires franchisees to spend a minimum of $3,600 per quarter on local advertising during their first year of operations, or 8% of their Gross Revenue, whichever is greater. This local marketing expenditure is paid to third party authorized vendors and is spent and directed by the Franchisee on advertising in their local market.
Prospective franchisees should note that marketing is a critical component of launching a 1-800-GOT-JUNK? franchise. While 1-800-GOT-JUNK? controls the initial $25,000 investment, franchisees have control over their local marketing strategies and expenditures. Understanding the specific marketing strategies 1-800-GOT-JUNK? employs with the initial marketing expense, and planning a local marketing strategy within the brand standards, will be important for a franchisee's success.