Can 1-800-GOT-JUNK? terminate the franchise agreement with cause?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
f. Termination by 1-800-GOT- JUNK? with cause We may terminate by giving you written notice, in some cases after providing you written notice of default and a cure period. Cross-defaults may also result in termination. g. “Cause” defined – defaults which can be cured 17.1 Failure to cure a non-payment default within 15 days after written notice; or failure to cure non-compliance with any other obligation or lack of good standing with us within 30 days after written notice of default. h. “Cause” defined – defaults which cannot be cured 17.2; 17.3 Three or more curable defaults within a 12- month period; failure to commence operation by the scheduled opening date; if you cause the Franchised Business to be closed or not operating for five business days in any 30 consecutive day period without our prior consent; failure to assign within required timeframe after death or permanent disability; termination of or failure to remain in good standing under all vehicle leases; failure to comply with Security Agreement; you become insolvent or become bankrupt; you cease your corporate existence; unauthorized assignment; you lose possession without release of any items of personal property used in the Franchised Business; failure to satisfy judgment entered against you; you 4899-8658-3815.1
Provision Section in Franchise Agreement Summary are enjoined from operating the Franchised Business; foreclosure by a secured creditor upon the real or personal property used in the Franchised Business; unauthorized use or transfer of interest in the System; continual failure to offer for sale any approved Service or offering to sell services not approved; intentional falsification or misrepresentation of information provided to us; you engage in misleading advertising or operate in dishonest, illegal or unethical manner; if your license to operate is suspended or revoked; failure to rectify any order issued by a government or regulatory authority; your Principal Operator fails to complete initial training; conduct or offenses that harm goodwill of System; you repudiate the Franchise Agreement or cause a consequences where you cannot rectify any material term, condition, covenant, provision or obligation. i. Your obligations on termination/non-renewal 17.8; 18; 21.2 Discontinue operations; payment of all accounts by bank draft;
Source: Item 16 — Restrictions On What the Franchisee May Sell (FDD pages 38–42)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? can terminate the franchise agreement with cause. 1-800-GOT-JUNK? can do so by providing written notice to the franchisee. In some cases, this termination can occur after 1-800-GOT-JUNK? provides written notice of default and an opportunity to correct the issue. Cross-defaults, where a breach in one agreement triggers a default in another, may also lead to termination.
The FDD outlines specific defaults that can be cured by the franchisee. These include failure to correct a non-payment default within 15 days after written notice or failure to correct non-compliance with any other obligation or a lack of good standing within 30 days after written notice of default.
However, there are also defaults that cannot be cured. These include three or more curable defaults within a 12-month period, failure to commence operation by the scheduled opening date, causing the Franchised Business to be closed or not operating for five business days in any 30 consecutive day period without 1-800-GOT-JUNK?'s prior consent, failure to assign within the required timeframe after death or permanent disability, termination of or failure to remain in good standing under all vehicle leases, failure to comply with the Security Agreement, franchisee insolvency or bankruptcy, ceasing corporate existence, unauthorized assignment, losing possession without release of any items of personal property used in the Franchised Business, failure to satisfy a judgment entered against the franchisee, being enjoined from operating the Franchised Business, foreclosure by a secured creditor upon the real or personal property used in the Franchised Business, unauthorized use or transfer of interest in the System, continual failure to offer for sale any approved Service or offering to sell services not approved, intentional falsification or misrepresentation of information provided to 1-800-GOT-JUNK?, engaging in misleading advertising or operating in a dishonest, illegal, or unethical manner, suspension or revocation of the franchisee's license to operate, failure to rectify any order issued by a government or regulatory authority, the Principal Operator failing to complete initial training, conduct or offenses that harm the goodwill of the System, repudiating the Franchise Agreement, or causing a situation where the franchisee cannot rectify any material term, condition, covenant, provision, or obligation.