Are the insurance coverage requirements for a 1-800-GOT-JUNK? franchise subject to change?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain and maintain at all times during the term of your franchise the types of insurance policies or coverage and the minimum policy limits or maximum deductibles of any policy as specified in the Operations Manual (“Coverages”), which are apt to change from time-to-time. You must also maintain at all times all insurance policies as required by the law in which your Franchised Business is operated. You must name us and our affiliates, agents, representatives, shareholders, directors, officers and employees as additional insureds on all policies of insurance, and include a waiver of subrogation against these additional insureds. The following are our current minimum requirements for Coverages:
Type Coverage Comprehensive Liability Not less than $2,000,000 per occurrence Business Interruption As required by Franchisor Vehicle Liability Not less than $1,000,000 or as required by Franchisor Employer’s Liability Insurance As required by Franchisor; not less than $1,000,000 Umbrella Coverage Not less than $2,000,000 Worker’s Compensation As required by state law Primary and Noncontributory Endorsement
Blanket Contractual Liability Endorsement
Other As required by Franchisor
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the insurance coverage requirements for franchisees are subject to change during the term of the franchise agreement. 1-800-GOT-JUNK? requires franchisees to maintain specific types of insurance policies with minimum coverage limits, as detailed in the Operations Manual. These coverage requirements are not static and can be modified by 1-800-GOT-JUNK? over time.
1-800-GOT-JUNK? specifies current minimum insurance requirements, including Comprehensive Liability coverage of not less than $2,000,000 per occurrence, Vehicle Liability of not less than $1,000,000 (or as required by the Franchisor), Employer’s Liability Insurance of not less than $1,000,000 (or as required by the Franchisor), and Umbrella Coverage of not less than $2,000,000. Additionally, franchisees must carry Business Interruption insurance, Worker’s Compensation as required by state law, and other coverage types as mandated by 1-800-GOT-JUNK?.
This flexibility allows 1-800-GOT-JUNK? to adapt to changing legal and business environments, ensuring that franchisees maintain adequate protection against potential liabilities. For a prospective franchisee, this means that the initial insurance costs and coverage levels could increase over time, impacting their operating expenses. Franchisees must also name 1-800-GOT-JUNK? and its affiliates as additional insureds on all policies and include a waiver of subrogation against these additional insureds.
It is important for potential franchisees to factor in the possibility of increased insurance costs when evaluating the financial feasibility of a 1-800-GOT-JUNK? franchise. They should discuss with the franchisor the potential frequency and magnitude of changes to insurance requirements to better understand the long-term financial implications.