9. 1-800-Got Junk? is a junk removal franchise busi- ness headquartered in Vanco
ID: 1116049 • Letter: 9
Question
9. 1-800-Got Junk? is a junk removal franchise busi- ness headquartered in Vancouver, British Columbia, Canada. In late 2003, Got Junk entered a franchise agreement with Millenium Asset Recovery, Inc. The agreement stated that the franchisee, Millen- nium, would pay a percentage of its gross revenue to Got Junk on every junk removal job it performs. In 2007, Got Junk terminated Millennium's franchise on the grounds that Millennium deliberately had not reported certain jobs and the gross revenue derived from such jobs. Was Got Junk right in terminating the agreement? Why or why not? [1-800-Got Junk? LLO v. Superior Court (Millennium Asset Recovery, Inc.) Cal.App.4th, Second Dist., Div. Three. (2010).]Explanation / Answer
Got junk was not right in terminating the agreement sure to following reasons-
- Got Junk terminated the agreement without giving any opportunity millennium asset for paying due amount. This is the violation of WFIPA.
- Got Junk acted with discriminatory motive without giving any notice to them. Other party should be informed before terminating the contract.
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