Does 1-800-GOT-JUNK? negotiate purchase arrangements with suppliers for the benefit of its franchisees?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently negotiate purchase arrangements with some suppliers for the benefit of our franchisees. We may receive rebates, promotional allowances, discounts or other payments or benefits from designated suppliers as a result of the purchases made by 1-800-GOT-JUNK? franchisees. Currently, the amount of payments are determined at the discretion of the suppliers, and are made in sponsorship of our annual conference. In our fiscal year ended December 31, 2024, certain suppliers made payments to us in the amount of $130,692 for such sponsorships.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? currently negotiates purchase arrangements with some suppliers for the benefit of its franchisees. These arrangements may result in 1-800-GOT-JUNK? receiving rebates, promotional allowances, discounts, or other benefits from these suppliers based on franchisee purchases.
These payments are determined at the discretion of the suppliers and are currently used to sponsor 1-800-GOT-JUNK?'s annual conference. In the fiscal year ending December 31, 2024, 1-800-GOT-JUNK? received $130,692 from suppliers for these sponsorships.
It is important for prospective franchisees to understand that while 1-800-GOT-JUNK? negotiates some purchase arrangements, the benefits derived from these arrangements are not directly passed on to the franchisees in the form of reduced prices or direct payments. Instead, these benefits are used to fund the annual conference. Franchisees should consider the value of the annual conference and how it might indirectly benefit their business when evaluating the overall value of the franchise opportunity.