What is the subject of Section 2 in 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 Franchise Disclosure Document, Section 2.1(a) of the 1-800-GOT-JUNK? Franchise Agreement defines the territory granted to the franchisee. This territory is specifically identified on an attached schedule labeled "Territory." Section 2.2 addresses subterritories, if applicable, and these are detailed on schedules labeled "Subterritory 1A" through "Subterritory "__". These sections are crucial for defining the franchisee's exclusive operational area.
For 1-800-GOT-JUNK? franchisees, understanding the territory and any subterritories is essential for business planning and market development. The agreement clarifies that where zip codes are used to describe the territory, the zip codes in effect as of the effective date of the agreement will be used. In case of any discrepancy between the zip codes and the map, the map will govern. This ensures clarity and precedence in defining the operational area.
Section 2.5 outlines the scheduled opening date of the franchised business, which may be extended by 1-800-GOT-JUNK? by up to 60 days. Section 2.6 specifies the term of the agreement as 5 years from the scheduled opening date. These sections define the timeline for establishing and operating the franchise. Prospective franchisees should pay close attention to these details to understand their rights and obligations regarding territory, opening date, and the duration of the franchise agreement.