1-800-GOT-JUNK Franchise Costs, Fees & FDD

Year Business Began: 1998

Franchising Since: 1999

Headquarters: Vancouver, B.C., Canada

Country of Origin: Canada

Estimated Number of Units: 175

Franchise Description: 1-800-GOT-JUNK? LLC is the franchisor. The franchisor offers franchises for the operation of retail junk removal businesses under the name “1-800-GOT-JUNK?” The system includes proprietary software, brand development, training, marketing programs and access to the exclusive service of the call center and online booking system, as well as the mark “1-800-GOT-JUNK?” and related marks.
Training Overview: The principal operator must attend initial training. The franchisor may also require any other director, officer, or shareholder of the franchise entity to attend initial training. All required attendees must successfully complete training to the franchisor’s satisfaction. The training covers all aspects of the business operating system, consisting of both in-class training and in-field training. All training takes place at 1-800-GOT-JUNK?’s principal offices in Vancouver, British Columbia (or another location to be determined) over the course of five business days. Each day of training will begin at approximately 8:00 AM and will end at 5:00 PM. In-field training shadowing an existing franchise is required before the commencement of the franchised business’ operations. It will generally take five business days. The Field Operations Manager assigned to the franchisee will be in the business to support them during the opening days of the franchise. Within 180 days of business launch, the franchisor will do a field visit to revisit training in the field of operation. Franchisees must attend, and must cause their principal operator, employees and representatives to attend, periodic refresher training, service training, management training and other training courses as required by the franchisor, at such times and locations as it may determine.

Territory Granted: Franchisees will receive a protected territory in which to operate the franchised business. Before signing the Franchise Agreement, the franchisor will determine the protected territory by developing geographic areas with base populations of 62,500 to 75,000 based on the most recently published data from the U.S. Census Bureau (or such other source as the franchisor may indicate to the franchisee). The territory will consist of a minimum of eight of these areas, and each one will be considered a “subterritory.” Franchisees will not receive an exclusive territory. However, the non-exclusivity extends only to the franchisor’s reserved rights with respect to national accounts. Subject to the franchisor’s rights with respect to national accounts (as described by the franchisor), so long as franchisees are in full compliance with the terms and conditions of their Franchise Agreement, the franchisor will not establish, operate or grant to anyone else a franchise to establish or operate a 1-800-GOT-JUNK? business in the territory.

Obligations and Restrictions: The franchisor requires that the franchised business be under the direct supervision at all times of a person who owns at least a minimum beneficial share ownership in the franchised business, as specified in the Franchise Agreement (the “principal operator”). The minimum share ownership requirement is generally 20% though the franchisor reserves the right to require a different amount in its discretion before the Franchise Agreement is signed. The principal operator must devote his or her full time, attention and effort to the franchised business. Franchisees must operate the franchised business and perform all services in accordance with the operating guidelines and quality standards the franchisor establishes. Franchisees may only sell the goods and services approved by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If requirements are met, franchisees can renew for three additional five-year terms.

Financial Assistance: The franchisor generally does not offer financing. However, the franchisor may, in its sole discretion, allow the franchisee to pay the initial franchise fee with respect to some of the subterritories in equal monthly installments without interest if payments are timely made. The franchisor does not guarantee any debts, leases or other obligations for franchisees. While not obligated to do so, the franchisor may, in its discretion, introduce franchisees to third party financing sources that may, if they meet their qualifications, supply financing options for items required as part of the initial investment.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$65,000	$97,500
Initial Marketing Expense	$25,000	$25,000
Computer Hardware and Software	$1,500	$4,000
Miscellaneous Opening Costs	$5,000	$15,000
Equipment (vehicle lease with dump box); Lease/Purchase Deposit	$10,000	$30,000
Real Estate/Rent	$1,200	$5,000
Local Marketing – 3 months	$3,600	$5,000
Insurance	$10,000	$30,000
Training Expenses	$3,500	$7,500
Additional Funds - 6 Months	$59,000	$75,000
ESTIMATED TOTAL*	$183,800	$294,000

*The estimated initial investment range is for a franchisee with 8 to 12 subterritories (8 is the minimum-sized new territory offered currently).

Other Fees

Type of Fee	Amount
Royalty	8% of gross revenue.
Minimum Royalty	Depending upon the franchisee’s year of operation, the minimum royalty will range from $1,200, pro-rated as necessary to account for operations for a partial calendar year in the first year of operation, to $4,000 per subterritory per calendar year. Payable only if the royalties actually paid by the franchisee in a year of operations for each subterritory is less than the total minimum royalty.
Sales and Marketing Center Fee	8% of gross revenue.
Branding Cooperative	Up to 5% of gross revenue in aggregate.
Optional Local Marketing Services and Assistance	To be agreed upon by the franchisee and the franchisor.
Additional Training and Retraining	Payment for additional training or retraining at the then-current training fee (currently up to $100 per person per day), plus the franchisor’s related out-of-pocket costs including all transportation, lodging and meal expenses incurred by the franchisor’s personnel.
Transfer Fee	$10,000
Renewal Fee	$7,500
Audit Expenses	Costs of examination or audit (approximately $3,000 to $7,500 but may be more), plus any deficiency in amounts that should have been paid to the franchisor.
Failure to Report Fee	5% of the royalty, the sales center and marketing fee and other amounts payable to the franchisor during the applicable semi-monthly period.
Interest on Late Payments	24% per year or the highest rate allowed by the state where the franchisee is located.
Reimbursement for Declined Transfers	Amounts payable that were declined plus all costs incurred by the franchisor in connection with such declination, including any reasonable administrative fee the franchisor may set periodically.
Annual Conference	$1,500 to $2,000 plus costs associated with attendance.
Management Assistance	Up to $750 per day plus out of pocket expenses.
Liquidated Damages – Breach of Standards	$25 - $2,000 depending upon the breach.
Liquidated Damages – Termination	Will vary under circumstances.
Indemnity	Depends upon the size of the loss for which the franchisee is required to indemnify the franchisor.
Proposed Supplier Evaluation	Varies, depending on proposed supplier and cost of products to be evaluated.
Payment Processor Application Fee	0.12% on the amount of each transaction processed, which the franchisor may increase to a maximum of 0.9% during the term of the Franchise Agreement. Applies to franchisees that have signed up for payment processing with the franchisor’s preferred vendor.
Payments for Future Products and Services	Products and services are charged at the then-current prices that the franchisor publishes to franchisees.

The above information has been compiled from the FDD of 1-800-GOT-JUNK?. Year of FDD: 2025.
Franchise Direct's Disclaimer