What is the minimum royalty due for each subterritory of a 1-800-GOT-JUNK? franchise during the fifth calendar year following the Scheduled Opening Date?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
nd (e) in respect of the fifth calendar year following the Scheduled Opening Date of the Franchised Business, $4,000 dollars for each Subterritory in the Territory; and (f) in the event of a renewal, except as specified in any renewal agreement, no less than the Minimum Royalty payable during the last calendar year of the term of this Agreement or the previous re
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees must pay a minimum royalty fee for each subterritory. The minimum royalty increases each year for the first five years of operation.
Specifically, in the fifth calendar year following the Scheduled Opening Date of the 1-800-GOT-JUNK? franchised business, the minimum royalty due is $4,000 for each subterritory within the territory. This means that if a franchisee has multiple subterritories, they will owe $4,000 for each one.
The FDD also specifies that whether any Minimum Royalty payment is due is evaluated for each Subterritory separately, and independent of any Royalties paid with respect to other Subterritories. This means that the performance of one subterritory does not affect the minimum royalty due on another subterritory.