What systems are franchisees required to establish and operate for a 1-800-GOT-JUNK? franchise?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You must establish and maintain a high-speed Internet connection for use in connection with your Franchised Business, and establish and operate such software, computer, communications and other systems hardware and software that we prescribe. These amounts represent the estimated cost to purchase and establish this equipment. Item 11 describes the required computer hardware and software in greater detail.
4) This estimates your initial miscellaneous start-up expenses, including your initial truck-based marketing kit, Universal Business Listing ads, uniforms, truck equipment, deposits, business licenses and legal expenses. Your expenses may vary depending upon the nature of your existing operations, whether you currently own computers, communications and related equipment and whether you currently have an office. You will also have to pay for fuel and maintenance costs for your trucks. These figures are estimates and we cannot guarantee that you will not have additional expenses in starting your business.
5) Truck total cost is estimated at $77,750 per gasoline-powered truck and $82,700 per diesel- powered truck, which includes an approved dump body at an estimated cost of $25,100. The above low end figure assumes that the truck is leased or financed and does not include applicable taxes or shipping for the complete truck (chassis and dump body). The above high end figure assumes you put 20% down on the purchase of a truck, plus ongoing monthly payments. You must obtain a truck equipped with a dump body from our designated supplier. Truck cost is estimated and will vary depending upon market prices. You are encouraged to check with your local auto dealership. We require a minimum of two trucks but you may require more if you have multiple subterritories. If you have multiple subterritories, we recommend that you commence operating all vehicles as soon as reasonably possible; however, you are only required to purchase or lease two trucks upon startup, and purchase or lease further trucks according to a schedule after startup to which we agree. You are required to use only those trucks in the operation of the Franchised Business, and permitted to use the trucks only for the Franchised Business and for no other reason. 4899-8658-3815.1
6) You must secure a location from which you will operate your franchise at the commencement of operations. You must maintain sufficient space to operate computer, communications and related equipment and maintain records. We estimate that you will need a minimum of 300 to 400 sq. feet. The above estimate is based upon rental payments of $750 per month, with payment of first and last month’s rent and a damage deposit equal to one month’s rent at the beginning of the lease.
7) You are required to expend 8% of your Gross Revenue on local advertising, but in any event no less than $3,600 per quarter on local advertising during your first year of operations. A significant amount of working capital may be allocated to additional marketing during the start-up phase of the business.
Source: Item 7 — Estimated Initial Investment (FDD pages 17–21)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees must establish and maintain a high-speed internet connection and operate specific software, computer, communications, and other systems hardware as prescribed by 1-800-GOT-JUNK?. Item 11 of the FDD provides further details on the required computer hardware and software. Franchisees also need to secure and maintain an operating location with sufficient space (a minimum of 300 to 400 sq. feet is estimated) for computer, communications, and related equipment, as well as record keeping.
In addition to physical and digital infrastructure, 1-800-GOT-JUNK? franchisees are required to meet certain marketing and advertising obligations. Specifically, franchisees must spend 8% of their Gross Revenue on local advertising, with a minimum spend of $3,600 per quarter during the first year of operations. Franchisees are also obligated to obtain and maintain various insurance policies, including Comprehensive Liability (not less than $2,000,000 per occurrence), Business Interruption (as required by 1-800-GOT-JUNK?), Vehicle Liability (not less than $1,000,000 or as required by 1-800-GOT-JUNK?), Employer’s Liability Insurance (as required by 1-800-GOT-JUNK?, not less than $1,000,000), Umbrella Coverage (not less than $2,000,000), and Worker’s Compensation (as required by state law).
These insurance policies must name 1-800-GOT-JUNK? and its affiliates as additional insureds and include a waiver of subrogation. Furthermore, franchisees must adhere to the insurance requirements mandated by the laws of the state in which they operate their 1-800-GOT-JUNK? franchise. Franchisees are also required to use only approved trucks equipped with a dump body from 1-800-GOT-JUNK?'s designated supplier, and these trucks can only be used for the franchised business.