What is the minimum royalty fee for each subterritory during the second calendar year of operation for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The Minimum Royalty is the following amount for each subterritory in your Territory: (i) $1,200 in the calendar year which the Franchised Business commences operations, pro-rated as necessary to account for operations for a partial calendar year only; (ii) $1,900 in the second calendar year of operations; (iii) $2,500 in the third calendar year of operations; (iv) $3,200 in the fourth calendar year of operations; (v) $4,000 in the fifth calendar year of operations; and (vi) in the event of a renewal, no less than the Minimum Royalty payable during the last calendar year of the term or previous renewal term (as the case may be) plus an increase of no less than 10% (except as otherwise specified in any renewal agreement). The Minimum Royalty must be achieved in each subterritory in your Territory, regardless of the performance in other subterritories.
3) At this time, we impose continuing fees in a uniform manner for all new franchisees. Franchisees that were awarded franchises in prior years, franchisees that have prototyped new formats, and franchisees in which we or our affiliates have an ownership interest, may pay different continuing fees than new franchisees.
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees must pay a minimum royalty fee. The minimum royalty due depends on the number of years the franchise has been in operation. The minimum royalty must be achieved in each subterritory, regardless of the performance in other subterritories.
During the first calendar year of operation, the minimum royalty is $1,200, but this amount is pro-rated to account for partial-year operations. In the second calendar year, the minimum royalty increases to $1,900. By the third, fourth, and fifth calendar years, the minimum royalty increases to $2,500, $3,200, and $4,000, respectively.
If a franchisee renews their agreement, the minimum royalty will increase by no less than 10% of the minimum royalty payable during the last calendar year of the original or previous renewal term. It's important to note that these specified dollar amounts are subject to an annual inflation adjustment based on the Consumer Price Index, U.S. Average, all items, maintained by the U.S. Department of Labor.