How are the new fees imposed by 1-800-GOT-JUNK? generally increased?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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; but in any event will be applicable for products and services that we reasonably deem are necessary or beneficial for the operation of the System, are valuable and desired by franchisees or customers, or are made necessary by future developments such as changes in technology, partnerships with new vendors or suppliers, or changes in customer preferences. Once imposed, these fees may increase from time to time during the term of the Franchise Agreement generally in proportion to our cost increases to provide the product or service.
Unless otherwise stated, all fees are uniformly imposed by and payable to 1-800-GOT-JUNK? and are non-refundable.
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, there are two primary ways that fees may increase. First, specified dollar amounts are subject to an annual inflation adjustment. This adjustment is tied to the Consumer Price Index (CPI), U.S. Average, for all items, which is maintained by the U.S. Department of Labor. This means that certain fees will increase each year in proportion to the change in the CPI, helping 1-800-GOT-JUNK? account for general economic inflation.
Second, 1-800-GOT-JUNK? may require franchisees to pay for specific products and services provided by them or their affiliates, or collected on behalf of third-party suppliers. These could be existing required purchases or newly required products/services resulting from modifications to the 1-800-GOT-JUNK? system. While the exact amounts of these payments are unknown or unanticipated as of the FDD date, they will be applicable for products and services that 1-800-GOT-JUNK? reasonably deems necessary or beneficial for the operation of the system, valuable and desired by franchisees or customers, or made necessary by future developments such as changes in technology, partnerships with new vendors or suppliers, or changes in customer preferences.
Once these new fees are imposed, 1-800-GOT-JUNK? states that they may increase from time to time during the term of the Franchise Agreement. These increases are generally in proportion to 1-800-GOT-JUNK?'s cost increases to provide the product or service. This means that if the cost for 1-800-GOT-JUNK? to provide a particular product or service goes up, the fee charged to franchisees for that product or service may also increase proportionally. This protects 1-800-GOT-JUNK? from absorbing cost increases and ensures that franchisees contribute to covering those increased costs.