What phrase should a 1-800-GOT-JUNK? franchisee use to indicate trademark ownership?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall cause all shares of its capital stock, unit certificates or similar agreements or indications of ownership, to include the following legend, with necessary changes:
The Company and the securities evidenced by this certificate are subject to, and the disposition and transfer of such securities are restricted by, a franchise agreement dated as of [Effective Date], between the Company and 1-800-GOT-JUNK? LLC, a Delaware limited liability company, a copy of which may, at the request of any [shareholder] of the Company, be examined at the principal business office of the Company during normal business hours.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, 1-800-GOT-JUNK? franchisees who have shares of capital stock, unit certificates, or similar agreements must include a specific legend. This legend indicates that the company and its securities are subject to the terms and restrictions outlined in the franchise agreement.
The required phrase is: "The Company and the securities evidenced by this certificate are subject to, and the disposition and transfer of such securities are restricted by, a franchise agreement dated as of [Effective Date], between the Company and 1-800-GOT-JUNK? LLC, a Delaware limited liability company, a copy of which may, at the request of any [shareholder] of the Company, be examined at the principal business office of the Company during normal business hours."
This requirement ensures that all stakeholders are aware of the franchise agreement's terms and conditions, particularly those related to the transfer of ownership. It protects 1-800-GOT-JUNK?'s interests by maintaining control over who can become a franchisee and under what conditions. Prospective franchisees should understand this restriction as it affects their ability to sell or transfer their ownership in the franchise.