What is the length of the initial franchise term for 1-800-GOT-JUNK?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Provision Section in Franchise Agreement Summary a. Length of the Franchise Term 2.6, Schedule B 5 years. b. Renewal or extension of the term 19, Schedule B 3 additional 5 year terms. We may in our discretion offer further renewal terms to qualified franchisees in accordance with our policy.
Source: Item 16 — Restrictions On What the Franchisee May Sell (FDD pages 38–42)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the initial length of the franchise term is 5 years, as detailed in Section 2.6 and Schedule B of the Franchise Agreement. This means that a new franchisee will operate under the franchise agreement for a period of 5 years before needing to consider renewal.
Following the initial term, 1-800-GOT-JUNK? offers the possibility of renewing the franchise agreement for up to three additional 5-year terms, as outlined in Section 19 and Schedule B. However, these renewals are not guaranteed. 1-800-GOT-JUNK? retains the discretion to offer further renewal terms to qualified franchisees based on their internal policies.
To be eligible for renewal, a franchisee must be in full compliance with the Franchise Agreement and must not have committed any stated defaults. Additionally, the franchisee must provide written notice of their intent to renew, meet 1-800-GOT-JUNK?'s then-current requirements for franchisees, sign the current form of the Franchise Agreement (which may contain materially different terms), pay a renewal fee, and upgrade their vehicles. These conditions ensure that franchisees remain aligned with 1-800-GOT-JUNK?'s standards and practices throughout the duration of their franchise operation.