What is the significance of the effective date on the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE B
This is Schedule B to a Franchise Agreement between
1-800-GOT-JUNK?
LLC, a Delaware limited liability company and
FRANCHISED BUSINESS - PARTICULARS
Effective Date:
Franchised Location (Section 4.1):
Territory (Section 2.1(a)): The Territory granted to Franchisee under Section 2.1(a) of this Agreement is the area identified on the attached schedule labelled “Territory”.
Subterritories (if applicable) (Section 2.2): The Subterritories granted to Franchisee under Section 2.2 of this Agreement are the areas identified on the attached schedules labelled “Subterritory 1A” through to and including “Subterritory “__”.
Where zip codes are used to describe a Territory or Subterritory, the area represented shall be determined having reference to the zip codes in effect as of the Effective Date.
In the event of a discrepancy between the zip codes and the map for a particular Territory or Subterritory, the map shall govern.
Scheduled Opening Date of Franchised Business (Section 2.5): *, which Franchisor may extend by up to 60 days under Section 2.5.
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 1-800-GOT-JUNK? Franchise Disclosure Document, the effective date specified in Schedule B of the Franchise Agreement marks the commencement of the agreement between 1-800-GOT-JUNK? LLC and the franchisee. This date is significant because it determines when the terms and conditions of the agreement officially come into force.
The FDD states that where zip codes are used to describe a territory, the area represented will be determined with reference to the zip codes in effect as of the Effective Date. This means that the franchisee's exclusive territory is defined by the zip codes as they exist on the effective date, which is important for determining the scope of their operational area.
Furthermore, the Guarantee, Postponement, and Covenants Agreement is effective as of the Effective Date, indicating that the guarantor's obligations and responsibilities also begin on this date. The Franchise Agreement term is 5 years from the Scheduled Opening Date. The effective date is therefore a critical reference point for various aspects of the franchise relationship, including territory rights, agreement duration, and associated obligations.