What is the maximum distance from the boundary of the Territory that alternative subterritories may be granted to a 1-800-GOT-JUNK? Franchisee?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting Franchisee’s obligation to perform due diligence prior to entering into this Agreement, in the event Franchisee is unable to operate in any one or more Subterritory due to government regulations, Franchisor may, but is not obliged to, grant one or more alternative Subterritories to Franchisee that are contiguous with or within fifty (50) miles of the boundary of the Territory.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, if a franchisee is unable to operate in one or more subterritories due to government regulations, 1-800-GOT-JUNK? may grant alternative subterritories. These alternative subterritories will be either contiguous with the original territory or within fifty (50) miles of the boundary of the original territory.
This provision offers a degree of flexibility for 1-800-GOT-JUNK? franchisees who encounter unexpected regulatory obstacles that prevent them from operating in specific subterritories they initially acquired. The allowance of alternative subterritories within a 50-mile radius provides an opportunity to continue business operations in a nearby area, potentially mitigating losses and maintaining revenue streams.
However, it's important to note that 1-800-GOT-JUNK? is not obligated to provide alternative subterritories. The decision to grant them is at the discretion of the franchisor. Additionally, the availability and suitability of alternative subterritories will depend on various factors, including local market conditions and the specific nature of the government regulations that impede operations in the original subterritory. A prospective franchisee should inquire about the process and criteria 1-800-GOT-JUNK? uses to determine whether to grant alternative subterritories.