What is the purpose of the 'Term' section (2.6) in the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Term (Section 2.6): 5 years from the Scheduled Opening Date.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, Section 2.6 of the 1-800-GOT-JUNK? Franchise Agreement defines the term, or length, of the franchise agreement. The FDD states that the term is 5 years from the Scheduled Opening Date.
For a prospective franchisee, this means the franchise agreement with 1-800-GOT-JUNK? will last for 5 years, beginning on the date the franchise is scheduled to open. It is important to note that the Scheduled Opening Date may be extended by 1-800-GOT-JUNK? by up to 60 days under Section 2.5 of the agreement.
Understanding the term of the agreement is crucial for financial planning, as it dictates the period during which the franchisee can operate under the 1-800-GOT-JUNK? brand and utilize its system. Franchisees should inquire about renewal options and terms to understand their long-term prospects with the franchise.