To whom is the insurance payment made 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 the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the insurance payment is made to the insurance provider. This is part of the initial investment a franchisee must make to start their business. The estimated cost for insurance ranges from $10,000 to $30,000, and this payment is due as incurred.
Maintaining adequate insurance coverage is a crucial aspect of operating a 1-800-GOT-JUNK? franchise. The FDD specifies that franchisees must obtain and maintain various types of insurance policies, with the minimum policy limits subject to change as outlined in the Operations Manual. These coverages include comprehensive liability (not less than $2,000,000 per occurrence), business interruption, vehicle liability (not less than $1,000,000 or as required by the Franchisor), employer’s liability insurance (not less than $1,000,000 or as required by the Franchisor), umbrella coverage (not less than $2,000,000), and worker’s compensation as required by state law.
Furthermore, 1-800-GOT-JUNK? requires that franchisees name the company and its affiliates as additional insureds on all insurance policies and include a waiver of subrogation against these additional insureds. This requirement protects 1-800-GOT-JUNK? from potential liabilities related to the franchisee's operations. Franchisees must also adhere to all insurance requirements mandated by the laws of the state in which they operate their franchised business. This ensures compliance with local regulations and provides adequate protection for the business and its employees.