What is the range of liquidated damages that 1-800-GOT-JUNK? can charge for a breach of standards?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Name of Fee Amount Due Date Remarks Liquidated Damages – Breach of Standards $25 - $5,000 depending upon the breach. Subject to increase; see Note 4. Upon demand Payable if we determine that you have contravened a standard set out in the Franchise Agreement or Operations Manual. Amount of damages depends upon the nature of the violation. See Section 17.9 of the Franchise Agreement.
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, the liquidated damages for a breach of standards range from $25 to $5,000, depending on the nature of the violation. These damages are payable if 1-800-GOT-JUNK? determines that a franchisee has contravened a standard set out in the Franchise Agreement or Operations Manual. This fee is subject to increase.
For a prospective 1-800-GOT-JUNK? franchisee, this means that failing to adhere to the standards outlined in the Franchise Agreement or Operations Manual could result in a financial penalty. The specific amount will depend on the severity and nature of the breach. It is important to carefully review and understand all standards to avoid potential violations and associated liquidated damages.
It's also important to note that the specified dollar amounts, including the liquidated damages for breach of standards, are subject to an annual inflation adjustment based on the Consumer Price Index, U.S. Average, as maintained by the U.S. Department of Labor. This means the actual amount a franchisee might have to pay could increase over time due to inflation.