When is the initial portion of the 1-800-GOT-JUNK? transfer fee due?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: Other Fees]
Name of Fee Amount Due Date Remarks Transfer Fee $10,000 You are required to pay $2,500 upon announcing your intention to sell, and the balance upon transfer.
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, a franchisee who is transferring their franchise is required to pay a transfer fee of $10,000. The initial portion of this fee, amounting to $2,500, is due upon announcing the intention to sell the franchise. The remaining balance of the $10,000 transfer fee is due upon the completion of the transfer.
This means that a 1-800-GOT-JUNK? franchisee needs to have $2,500 available when they decide to sell their franchise, well before the actual sale takes place. This upfront payment may be non-refundable, so it is important to consider this cost when making the decision to sell. The remaining $7,500 will be due when the transfer is finalized.
Transfer fees are a common practice in franchising, intended to cover the franchisor's administrative costs associated with reviewing and approving the transfer of ownership. Franchisees should carefully consider these costs and factor them into their financial planning when considering selling their 1-800-GOT-JUNK? franchise.