What is the method of payment for the initial marketing expense for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 7. Estimated Initial Investment
YOUR ESTIMATED INITIAL INVESTMENT (for a franchisee with 8 to 12 subterritories, with 8 being the minimum-sized new territory we offer)
Type of Expenditure Amount Method of Payment
When Due To Whom Payment Is to Be Made Low High Initial Franchise Fee (Notes 1 and 12) $65,000 $97,500 Lump sum At signing of Franchise Agreement. Initial Marketing Expense (Notes 2 and 12) $25,000 $25,000 Lump sum At signing of Franchise Agreement (then disbursed to 3rd Party Vendors) Computer Hardware and Software (Note 3) $1,500 $4,000 As arranged As incurred 3rd Party Vendors Miscellaneous Opening Costs (Note 4) $5,000 $15,000 As arranged As arranged 3rd Party Vendors Equipment (Vehicle Lease with dump body) Lease/purchase deposit (Note 5) $10,000 $30,000 Monthly Lease Monthly Dealer/Seller/ Lessor/Finance Company Real Estate/Rent (Note 6) $1,200 $5,000 As arranged As arranged Landlord/Lessor Local Marketing* – 3 months (Note 7) $3,600 $5,000 As arranged As incurred This money is spent and directed by the Franchisee on advertising in their local market. See Sections 10.1 and 10.2 of the Franchise Agreement. This expenditure is paid to third party authorized vendors. Insurance (Note 8) $10,000 $30,000 As arranged As incurred Insurance provider Training Expenses (Note 9) $3,500 $7,500 As required by vendors Before Opening Third-party hotel, restaurant and transportation vendors 4899-8658-3815.1
Type of Expenditure Amount Method of Payment
When Due To Whom Payment Is to Be Made Low High Additional Funds – 6 Months (Note 10) $59,000 $75,000 As required by vendors and employees As incurred Employees, Suppliers, Utilities TOTAL (Notes 11 and 12) $183,800 $294,000
Notes:
1) This estimate represents the initial franchise fee of $8,125 per subterritory, with the low estimate being a franchise with eight subterritories and the high estimate being a franchise with 12 subterritories. If your franchise is more than 12 subterritories, you will pay $8,125 for each additional subterritory.
2) The Initial Marketing Expense will be used by us at our discretion to market and promote the Franchised Business prior to and/or during the first 6 months of operation.
3) You must establish and maintain a high-speed Internet connection for use in connection with your Franchised Business, and establish and operate such software, computer, communications and other systems hardware and software that we prescribe.
Source: Item 7 — Estimated Initial Investment (FDD pages 17–21)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the initial marketing expense ranges from $25,000 to $25,000. This is paid as a lump sum at the signing of the Franchise Agreement. These funds are then disbursed to 3rd party vendors.
1-800-GOT-JUNK? uses this initial marketing expense at its discretion to market and promote the franchised business prior to and/or during the first 6 months of operation.
Prospective franchisees should note that this expense is in addition to the local marketing that the franchisee is required to spend. Franchisees must expend 8% of their Gross Revenue on local advertising, but in any event no less than $3,600 per quarter on local advertising during their first year of operations. This local marketing expenditure is paid to third party authorized vendors.