What is the minimum royalty fee for each subterritory during the third 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.
We retain discretion to reduce fees in individual cases in our discretion.
We also reserve the right to change the type and amount of fees that we require future franchisees to pay us.
4) Specified dollar amounts are subject to an inflation adjustment annually in proportion to the change in the Consumer Price Index, U.S. Average, all items, maintained by the U.S. Department of Labor (or any replacement index selected by us).
5) We may in the future require you to pay us and our affiliates for specific products and services that we provide or that we collect on behalf of third-party suppliers. These may be products and services that we currently require franchisees to purchase, or they may be newly required products or services pursuant to our reserved rights to modify the System. These required payments cannot be quantified as of the date of this disclosure document because they are currently unknown or unanticipated;
Source: Item 6 — Other Fees (FDD pages 11–17)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, franchisees must pay a minimum royalty fee. The minimum royalty fee for each subterritory during the third calendar year of operation is $2,500. This minimum royalty must be achieved in each subterritory, regardless of the performance in other subterritories.
The amount payable is the amount the Minimum Royalty exceeds the amount of Royalties actually paid by you in any year of operations in the specific Subterritory being measured. The minimum royalty is evaluated for each subterritory independent of the royalties paid with respect to other subterritories.
It's important to note that these specified dollar amounts are subject to an inflation adjustment annually in proportion to the change in the Consumer Price Index, U.S. Average, all items, maintained by the U.S. Department of Labor (or any replacement index selected by 1-800-GOT-JUNK?). Also, the minimum royalty will increase no less than 10% if the Franchise Agreement is renewed.