When is the insurance expense due for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 7. Estimated Initial Investment
YOUR ESTIMATED INITIAL INVESTMENT (for a franchisee with 8 to 12 subterritories, with 8 being the minimum-sized new territory we offer)
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.
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 insurance expenses are due 'As incurred' to the insurance provider. The estimated initial investment for insurance ranges from $10,000 to $30,000. Franchisees must maintain the types of insurance policies and coverage, including minimum policy limits, as specified in the Operations Manual throughout the franchise term. These coverage requirements are subject to change.
1-800-GOT-JUNK? requires franchisees to maintain continuous insurance coverage in the amounts they specify and to adhere to all insurance policies mandated by the law of the state in which the franchised business operates. Additionally, 1-800-GOT-JUNK? and its affiliates, agents, representatives, shareholders, directors, officers, and employees must be named as additional insureds on all insurance policies, with a waiver of subrogation against these additional insureds.
The minimum coverage requirements include 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), and Worker’s Compensation (as required by state law). There must also be a Primary and Noncontributory Endorsement and a Blanket Contractual Liability Endorsement. The franchisor may require other types of coverage as well.
Prospective franchisees should note that these insurance costs are estimates and can vary. It is crucial to consult with insurance providers to obtain accurate quotes and understand the specific insurance requirements for their location and business operations. Maintaining adequate insurance coverage is essential not only to meet the franchisor's requirements but also to protect the franchisee's business from potential liabilities and financial losses.