For 1-800-GOT-JUNK?, what is the minimum number of vehicles a franchisee must purchase or lease for use in the Franchised Business?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Purchase Money Security Interests held by the lessors or creditors pursuant to Vehicle Leases (as that term is defined in the Franchise Agreement): (i) encumbering no more than the minimum number of Vehicles required under the Franchise Agreement, and (ii) only encumbering the particular Vehicle, and no other property of Debtor.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, the General Security Agreement between 1-800-GOT-JUNK? and the franchisee specifies that Purchase Money Security Interests held by lessors or creditors can encumber no more than the minimum number of vehicles required under the Franchise Agreement. This implies that there is a minimum vehicle requirement outlined in the Franchise Agreement. However, the exact minimum number of vehicles is not explicitly stated in this excerpt.
While the excerpt does not provide a specific number, it does highlight the importance of adhering to the vehicle requirements set forth in the Franchise Agreement. The security interests are limited to the minimum number of vehicles and only encumber the specific vehicle, protecting other assets of the franchisee.
A prospective 1-800-GOT-JUNK? franchisee should carefully review the Franchise Agreement to determine the minimum number of vehicles required to operate the franchise. It would be prudent to discuss this requirement with the franchisor to fully understand the investment needed for vehicles and any flexibility in meeting this obligation.