According to the 1-800-GOT-JUNK? National Account Service Agreement, can the Franchisor pay commissions to parties referring National Accounts on an ongoing basis?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor, Commercial Services or an affiliate of either of them, may enter into National Account agreements upon any terms it determines, in good faith, to be commercially viable for the System, including, without limitation:
(a) The provision of discounts off of regular retail pricing to the National Account, whether or not based upon volume.
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(b) The payment of commissions to the National Account or any party referring the National Account whether on a one-time or on an ongoing basis.
(c) The establishment of fixed pricing or pricing models unique to the National Account.
(d) The provision of service levels or standards unique to the National Account, including the requirement to provide service within required time periods, the provision of regularly scheduled service, or the use of specialized equipment or vehicles.
(e) The provision of centralized billing for the National Account through Franchisor or its affiliate.
(f) The requirement for Franchisee to obtain and maintain insurance levels required by the National Account, including the addition of the National Account or Franchisor’s assignee as a named insured or additional insured on applicable insurance policies.
(g) The requirement that Franchisee comply with additional terms of service required by the National Account, including but not limited to employee training and investigation, reporting, and invoicing procedures.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the franchisor, Commercial Services, or an affiliate may enter into National Account agreements with various terms. These terms, determined in good faith, must be commercially viable for the 1-800-GOT-JUNK? system. This includes the payment of commissions to parties referring National Accounts.
Specifically, 1-800-GOT-JUNK? has the discretion to pay these referral commissions either as a one-time payment or on an ongoing basis. This flexibility allows 1-800-GOT-JUNK? to incentivize referrals in a way that best suits the particular National Account agreement and the referring party.
For a prospective franchisee, this means that 1-800-GOT-JUNK? can establish relationships with National Accounts through referral partners, and franchisees may benefit from these relationships. However, the franchisee should be aware that the franchisor has broad discretion in setting the terms of these National Account agreements, including commission structures.