When is the renewal fee due for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: Other Fees]
Name of Fee Amount Due Date Remarks Transfer Fee $10,000 You are required to pay $2,500 upon announcing your intention to sell, and the balance upon transfer.
Renewal Fee $7,500 Within 3 months before expiration of current term. This fee is partly intended to defray legal and administrative costs incurred by us when you renew your franchise agreement. See Section 19 of the Franchise Agreement. Audit Expenses Costs of examination or audit (approximately $3,000 to $7,500 but may be more), plus any deficiency in amounts that should have been paid to us. Subject to increase; see Note 4. Upon demand. Payable if our examination reveals a material deficiency in any report delivered by you. See Section 8.5 of the Franchise Agreement. Failure to Report Fee 5% of the Royalty, the Sales, Marketing and Technology Fee and other amounts payable to us during the applicable semi-monthly period Upon demand Payable if you fail to submit a semi-monthly report as required by 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 renewal fee is $7,500 and is due within three months before the expiration of the current franchise term. This fee is intended to cover the legal and administrative costs that 1-800-GOT-JUNK? incurs when a franchisee renews their franchise agreement. Section 19 of the Franchise Agreement provides additional details regarding franchise renewal.
It is common practice in the franchise industry to charge a renewal fee, as the franchisor incurs costs to process the renewal and ensure the franchisee is still a good fit for the system. The renewal fee for 1-800-GOT-JUNK? is a fixed amount, which provides certainty for franchisees planning to renew their agreement.
Prospective franchisees should review Section 19 of the Franchise Agreement to fully understand the conditions and requirements for renewing their 1-800-GOT-JUNK? franchise. Franchisees should also factor this $7,500 renewal fee into their long-term financial projections to ensure they have sufficient capital when the renewal time approaches.