What is the maximum percentage of Gross Revenue that a 1-800-GOT-JUNK? franchisee will be required to contribute in aggregate for all branding cooperatives?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Name of Fee Amount Due Date Remarks Branding Cooperative Up to 5% of Gross Revenue in aggregate As determined by us Only imposed if we authorize franchisees in a particular area to establish a branding cooperative and 65% of the involved franchisees (calculated on a gross revenue basis) subject to the branding cooperative consent to paying fees. See Section 10.5 of the Franchise Agreement. This is paid as directed by the Franchisor. These amounts may be credited towards Local Marketing obligations. Any franchisor-owned outlets in an area subject to a branding cooperative will pay into and vote in the same manner as franchised outlets. You will not be required to contribute more than 5% of your Gross Revenue in the aggregate for all branding cooperatives to which you belong.
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, a franchisee may be required to contribute up to 5% of their Gross Revenue in aggregate for all branding cooperatives. This fee is only imposed if 1-800-GOT-JUNK? authorizes franchisees in a specific area to establish a branding cooperative, and if 65% of the involved franchisees (calculated on a gross revenue basis) consent to paying the fees.
This branding cooperative fee is paid as directed by 1-800-GOT-JUNK? and these amounts may be credited towards Local Marketing obligations. Any 1-800-GOT-JUNK?-owned outlets in an area subject to a branding cooperative will pay into and vote in the same manner as franchised outlets.
This means that a 1-800-GOT-JUNK? franchisee's contribution to branding cooperatives is capped at 5% of Gross Revenue in total. This fee is contingent on the formation of a cooperative in their area and the consent of a supermajority of franchisees within that cooperative. The funds are intended to support local branding efforts, and any company-owned locations in the area will also participate in the cooperative.