How is the Royalty fee paid by a 1-800-GOT-JUNK? franchisee?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |---|---|---|--- | Royalty | 8% of Gross Revenue. See Note 1. | Semi-monthly within three business days of the 15th day and the last day of each month | Paid by electronic transfer. | Minimum Royalty | Depending upon your year of operation, the Minimum Royalty will range from $1,200, pro-rated as necessary to account for operations for a partial calendar year in the first year of operation, to $4,000 for each Subterritory per calendar year. The amount payable is the amount the Minimum Royalty exceeds the amount of Royalties actually paid by you in any year of operations in the specific Subterritory being measured. See Note 2. | On or before March 31st each year | This is payable only if the Royalties actually paid by you in a year of operations for each Subterritory are less than the total Minimum Royalty. The Minimum Royalty is evaluated for each Subterritory independent of the Royalties paid with respect to other Subterritories. The Minimum Royalty will increase no less than 10% if the Franchise Agreement is renewed.
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 royalty fee is 8% of Gross Revenue and is paid semi-monthly via electronic transfer. Payments are due within three business days of the 15th day and the last day of each month. In addition to the standard royalty fee, 1-800-GOT-JUNK? franchisees must also pay a minimum royalty.
The minimum royalty varies depending on the year of operation, ranging from $1,200 in the first year (pro-rated for partial years) to $4,000 per subterritory per calendar year by the fifth year. This minimum royalty is evaluated for each subterritory independently. If the royalties actually paid are less than the minimum royalty for a subterritory, the franchisee must pay the difference on or before March 31st of each year.
It's important to note that these amounts are subject to change. The minimum royalty will increase by no less than 10% upon renewal of the Franchise Agreement. Also, 1-800-GOT-JUNK? retains the right to modify the type and amount of fees for future franchisees, and specified dollar amounts may be adjusted annually based on the Consumer Price Index.