How many days prior to executing a Vehicle Lease must a 1-800-GOT-JUNK? franchisee deliver a copy of the proposed lease to the Franchisor?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Vehicle Lease shall only be entered into by Franchisee on the condition that Franchisor has approved the form of the Vehicle Lease prior to Franchisee executing any such document. Franchisor shall not unreasonably withhold its approval to the form of Vehicle Lease provided that Franchisee has delivered a complete copy of the proposed form of Vehicle Lease to Franchisor at least ten (10) days prior to executing the Vehicle Lease. Once Franchisor’s approval has been obtained in accordance with this Section 5.2, Franchisee shall provide to Franchisor a complete copy of all executed Vehicle Leases as soon as practicable after execution along with the associated serial numbers for each of the Vehicles.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, a franchisee must provide a complete copy of the proposed Vehicle Lease to 1-800-GOT-JUNK? at least ten days prior to executing the lease. This allows 1-800-GOT-JUNK? to review and approve the lease terms.
1-800-GOT-JUNK? will not unreasonably withhold approval of the Vehicle Lease, assuming the franchisee provides the complete lease document within the specified timeframe. After receiving approval and executing the Vehicle Lease, the franchisee must then provide 1-800-GOT-JUNK? with a complete copy of the executed lease, including the serial numbers for each vehicle, as soon as it is practical.
This requirement ensures that 1-800-GOT-JUNK? maintains some control over the vehicles used in the franchise operation, likely to ensure they meet brand standards and operational requirements. It also protects the franchisee by ensuring the lease terms are reasonable and approved by the franchisor.