What is the name of the fund that 1-800-GOT-JUNK? franchisees contribute to for centralized call center, uniform order processing, and marketing?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the value of a centralized call center, uniform order processing, customer relationship management software systems and uniform marketing and promotion to the goodwill and public image of the System, Franchisee shall contribute to Franchisor’s sales, marketing and technology fund (the “Sales, Marketing and Technology Fund”) an amount equal to 8% of its Gross Revenue (the “Sales, Marketing and Technology Fee”).
The Sales, Marketing and Technology Fee shall be calculated upon the same basis and paid to Franchisor at the same time as the Royalty is payable.
With respect to the administration and use of the Sales, Marketing and Technology Fund, Franchisee agrees and acknowledges as follows:
(a) Franchisor shall use and expend the Sales, Marketing and Technology Fund at its sole and absolute discretion to, among other things:
(i) cover costs associated with the procurement, development, operation, and maintenance and replacement of all hardware, software, and other items used in connection with all technology that supports the contact with the customer on all platforms, including but not limited to, the Sales Center, the Customer Relationship Management platform, Field Service Management platform, E- commerce platform, business intelligence platform, customer communications platform, infrastructure platform, and any other online booking engine, and any related current or new technology and/or systems, including, without limitation, all costs associated with staffing the Sales Center (including all salaries, compensation, benefits and administrative costs for Sales Center staff employed by Franchisor or its Affiliates) and overhead, operational and ongoing costs associated with maintaining the above platforms and systems;
(ii) cover costs associated with media purchases, retaining advertising, marketing, digital and public relations agencies (either through an Affiliate, or through an advertising or public relations agency formed by Franchisor or an Affiliate for such purpose), commissions, marketing analytics, market research and concept
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees contribute to the "Sales, Marketing and Technology Fund" to support centralized services. This fund is specifically used for a centralized call center, uniform order processing, customer relationship management software systems, and marketing and promotion activities.
Franchisees are required to contribute 8% of their Gross Revenue to this fund, referred to as the "Sales, Marketing and Technology Fee." This fee is calculated and paid at the same time as the royalty fees. The funds are intended to enhance the goodwill and public image of the 1-800-GOT-JUNK? system.
1-800-GOT-JUNK? has complete discretion over how the Sales, Marketing and Technology Fund is administered and spent. This includes covering costs related to technology, such as hardware and software for the Sales Center and Customer Relationship Management (CRM) platform, as well as staffing the Sales Center. The fund also covers media purchases, advertising, marketing, and public relations efforts.
While the fund aims to benefit all 1-800-GOT-JUNK? franchisees, there is no guarantee that any individual franchisee will directly or proportionally benefit from the fund's activities. 1-800-GOT-JUNK? can spend more or less than the total contributions in any given year and may also borrow funds to cover deficits or invest surplus funds for future use. Franchisees do not have proprietary rights to the fund and cannot direct its administration.