What items, specifically, does 1-800-GOT-JUNK? require franchisees to purchase or lease from approved suppliers?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease certain items for your Franchised Business from us or our approved supplier(s) or under our specifications. All orders for Services and customer inquiries must be placed and processed using our designated Sales Center, and our designated customer relationship management system (the “CRM System”). We are the only approved supplier of the Sales Center and CRM System. Items you must purchase or lease from our approved suppliers include trucks, truck dump bodies, signage, uniforms, marketing materials, tools, equipment, credit and debit card processing services, communications equipment, computers and software.
Sometimes we will provide only specifications, and it will be up to you to find suppliers that meet our specifications. Some supplier relationships are mandatory but for some items we may recommend a supplier, but we will not require you to use that supplier. These specifications include model of truck, standards for gross tonnage, performance, type and appearance for your truck; insurance; memory, 4899-8658-3815.1
capacity and software capabilities of your computer; credit card processing software; and capabilities of your communications equipment. We require you to obtain insurance of the types and policies or coverages and the minimum policy limits or maximum deductibles or any policy as specified in the Operations Manual, and such requirements are apt to change from time-to-time during the term of your franchise. Unless we have specified otherwise, you may currently purchase or lease these items from sources you choose so long as they meet our specifications. We reserve the right, in the future, to serve as, to change, or to designate, an approved supplier for any of these items. Specifications and standards for these items are included in the Operations Manual, and may be updated or modified periodically by us.
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.
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, franchisees are required to purchase or lease certain items from 1-800-GOT-JUNK? or its approved suppliers. These include trucks, truck dump bodies, signage, uniforms, marketing materials, tools, equipment, credit and debit card processing services, communications equipment, computers, and software. All service orders and customer inquiries must be processed through 1-800-GOT-JUNK?'s designated Sales Center and CRM System, for which 1-800-GOT-JUNK? is the only approved supplier.
1-800-GOT-JUNK? may provide specifications for certain items, allowing franchisees to find suppliers that meet those specifications. These specifications can include the model of truck, standards for gross tonnage, performance, type and appearance for the truck, insurance, memory, capacity and software capabilities of the computer, credit card processing software, and capabilities of the communications equipment. Franchisees are also required to obtain specific types of insurance policies with minimum coverage limits as outlined in the Operations Manual, which may change over time.
Prospective 1-800-GOT-JUNK? franchisees should carefully review the Operations Manual for detailed specifications and standards for all required items. Understanding these requirements is crucial for budgeting and operational planning. Franchisees should also inquire about any potential changes to approved suppliers or specifications, as 1-800-GOT-JUNK? reserves the right to modify these at any time. Keeping abreast of these changes will ensure compliance and help avoid unexpected costs.
The FDD states that if you purchase your vehicles, the purchase and lease of items from approved suppliers or that meet their specifications represent approximately 70% to 90% of your total expenses in connection with the establishment of the Franchised Business, and approximately 50% to 60% of your total expenses in connection with the ongoing operation of the Franchised Business. If you lease your vehicles, the purchase and lease of items from approved suppliers or that meet their specifications represent approximately 10% to 30% of your total expenses in connection with the establishment of the Franchised Business, and approximately 40% to 50% of your total expenses in connection with the ongoing operation of the Franchised Business.