What is the minimum operational time required for a 1-800-GOT-JUNK? Franchised Business before a franchisee can request additional subterritories?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, a franchisee must operate their franchised business for at least 6 months before they are eligible to request additional subterritories. This requirement is in place to encourage franchisee success and ensure that franchisees have a solid operational foundation before expanding their territory.

In addition to the time-in-operation requirement, 1-800-GOT-JUNK? also stipulates other minimum standards that a franchisee must meet to gain approval for additional subterritories. These include submitting an annual financial statement and a current personal net worth statement to demonstrate financial ability. Franchisees must also have a minimum of 3 to 6 months of operating capital, beyond the additional franchise fees, based on their projections and living expenses. Furthermore, franchisees must be in good standing and in full compliance with all terms and conditions of their existing Franchise Agreement(s), including meeting minimum performance standards and adhering to truck lease or purchase agreements.

It is important to note that meeting these minimum standards does not guarantee approval for additional subterritories. 1-800-GOT-JUNK? retains the right to grant or refuse a franchised business or territory at its sole discretion, based on their assessment of each franchisee's business acumen. The franchisor may also require the franchisee to terminate their existing Franchise Agreement(s) and execute the then-current Franchise Agreement covering all subterritories, which may have materially different terms than the original agreement. The term of the new Franchise Agreement may coincide with the remainder of the shortest terms left under the prior Franchise Agreement(s), and the initial fees for such arrangements may be negotiated based on the existing facts and circumstances.