What is the significance of the 'Effective Date' in relation to the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
N WITNESS WHEREOF Franchisor and Franchisee have executed this Agreement on the date or dates set forth below, with effect from the Effective Date shown in Schedule B. FRANCHISOR: 1-800-GOT-JUNK? LLC, a Delaware limited liability company FRANCHISEE: By: (authorized signatory) Name: Title: By: (authorized signatory) Name: Title: Dated: Dated: 4908-1371-6037.2 Franchise Agreement 4/22 ACKNOWLEDGEMENT AND EXECUTION BY FRANCHISEE FRANCHISEE ACKNOWLEDGES THAT PRIOR TO THE DATE OF EXECUTING THIS AGREEMENT OR PAYING ANY NON-REFUNDABLE CONSIDERATION FOR IT, FRANCHISEE HAS RECEIVED, READ AND UNDERSTOOD A COMPLETE COPY OF THIS AGREEMENT (WITH ALL BLANKS COMPLETED) IN CONSULTATION WITH PROFESSIONAL ADVISORS OF FRANCHISEE’S OWN CHOOSING AND, ACCORDINGLY, THAT FRANCHISEE IS AWARE OF ALL PROVISIONS OF THIS AGREEMENT AND IS AWARE OF THE BUSINESS RISKS INVOLVED IN ENTERING INTO THIS AGREEMENT AND ESTABLISHING AND OPERATING THE FRANCHISED BUSINESS CONTEMPLATED HEREBY. FRANCHISEE: By: Dated: 4908-1371-6037.2 A-1 Franchise Agreement 4/22 SCHEDULE A This is Schedule A to a Franchise Agreement between 1-800-GOT-JUNK? LLC, a Delaware limited liability company and
MARKS 1-800-GOT-JUNK? ® Registration Number: 2,316,369
Registration Number: 3,044,864 (1-800-GOT-JUNK? image bearing the green/blue color scheme) GOT JUNK? Registration Number: 3,925,091 JUST POINT, AND JUNK Registration Number: 5,179,105 DISAPPEARS 4908-1371-6037.2 B-1 Franchise Agreement 4/22 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.
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,' as shown in Schedule B of the Franchise Agreement, marks the point from which certain key aspects of the agreement are determined. The agreement becomes effective only after it is signed by both 1-800-GOT-JUNK? and the franchisee. This date is crucial for defining the territory based on zip codes and is used as a reference point for the 1-800-GOT-JUNK? National Account Service Agreement.
Specifically, the territory granted to the franchisee is determined with reference to the zip codes in effect as of the Effective Date. This means that any changes to zip codes after this date do not alter the defined territory unless otherwise specified. Also, the term of the franchise agreement is defined as five years from the Scheduled Opening Date, which is itself linked to the Effective Date.
Furthermore, the Effective Date is acknowledged in agreements such as the 1-800-GOT-JUNK? National Account Service Agreement, indicating that the terms of that agreement are effective from that date. The guarantor's agreement also references the effective date of the Franchise Agreement, tying the guarantor's obligations to the validity and term of the Franchise Agreement. Therefore, the 'Effective Date' is not merely a formality but a critical reference point for defining rights, obligations, and timelines within the franchise relationship.