What is the minimum royalty due for each subterritory of a 1-800-GOT-JUNK? franchise during the calendar year in which the Scheduled Opening Date occurs?

According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, a franchisee must pay a minimum royalty for each subterritory within their territory. For the calendar year in which the franchise's Scheduled Opening Date occurs, the minimum royalty is $1,200 per subterritory. This amount is pro-rated if the business operates for only part of the calendar year.

This minimum royalty ensures that 1-800-GOT-JUNK? receives a baseline payment from each subterritory, regardless of actual revenue. If a franchisee's royalty payments based on gross revenue do not meet this minimum threshold, the franchisee is responsible for paying the difference. This policy incentivizes franchisees to actively develop and generate revenue within each of their subterritories.

The minimum royalty increases in subsequent years. In the second calendar year following the Scheduled Opening Date, the minimum royalty is $1,900 per subterritory. It then rises to $2,500 in the third year, $3,200 in the fourth year, and $4,000 in the fifth year. This escalating structure reflects the expectation that the franchisee's business will grow and become more profitable over time.

It's important to note that the minimum royalty is evaluated for each subterritory independently. Royalties paid for one subterritory cannot be used to offset any shortfall in another subterritory. This requirement ensures that each subterritory contributes its fair share to the overall royalty stream for 1-800-GOT-JUNK?.