When are liquidated damages for breach of standards due to 1-800-GOT-JUNK??
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Name of Fee Amount Due Date Remarks Liquidated Damages – Breach of Standards $25 - $5,000 depending upon the breach. Subject to increase; see Note 4. Upon demand Payable if we determine that you have contravened a standard set out in the Franchise Agreement or Operations Manual. Amount of damages depends upon the nature of the violation. See Section 17.9 of the Franchise Agreement.
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, liquidated damages for breach of standards are due upon demand. These damages, ranging from $25 to $5,000 depending on the specific breach, are payable if 1-800-GOT-JUNK? determines that a franchisee has violated a standard outlined in the Franchise Agreement or Operations Manual. The exact amount of damages will depend on the nature of the violation.
This means that if 1-800-GOT-JUNK? believes a franchisee has not met the required standards, they can demand payment of liquidated damages. The amount can vary significantly based on the severity and type of breach. It is important for prospective franchisees to carefully review the Franchise Agreement and Operations Manual to understand what constitutes a breach of standards and how these damages are assessed.
Furthermore, the FDD notes that these specified dollar amounts, including the liquidated damages for breach of standards, are subject to an annual inflation adjustment. This adjustment is based on the change in the Consumer Price Index, U.S. Average, all items, maintained by the U.S. Department of Labor. Therefore, the $25 to $5,000 range could increase over time due to inflation. Franchisees should factor in potential increases when considering the financial implications of potential breaches of standards.