factual

How much will a 1-800-GOT-JUNK? franchisee pay for each additional subterritory if their franchise is more than 12 subterritories?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

This estimate represents the initial franchise fee of $8,125 per subterritory, with the low estimate being a franchise with eight subterritories and the high estimate being a franchise with 12 subterritories. If your franchise is more than 12 subterritories, you will pay $8,125 for each additional subterritory.

Source: Item 7 — Estimated Initial Investment (FDD pages 17–21)

What This Means (2025 FDD)

According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the initial franchise fee is estimated to be between $65,000 and $97,500 for a franchise with 8 to 12 subterritories. The franchise agreement stipulates that if a franchisee purchases more than 12 subterritories, they must pay $8,125 for each additional subterritory.

This fee structure is important for prospective franchisees to consider, as it directly impacts the initial investment required to start the business. The cost of additional subterritories can quickly add up, so franchisees need to carefully evaluate the potential market demand and their ability to manage a larger territory.

For example, if a franchisee wanted to purchase 15 subterritories, they would pay the initial franchise fee for 12 subterritories (between $65,000 and $97,500) plus an additional $8,125 for each of the 3 extra subterritories, totaling $24,375. This brings the total initial franchise fee to between $89,375 and $121,875. Franchisees should factor in these costs when projecting their startup expenses and potential return on investment.

It is also worth noting that 1-800-GOT-JUNK? may, at its sole discretion, permit up to half of the initial franchise fee for multiple subterritories to be paid in equal monthly installments for up to 24 months, with no down payment (except the portion of the initial franchise fee not financed) and without interest if payments are made timely. This financing option could help reduce the upfront financial burden for franchisees looking to secure a larger territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.