According to the 1-800-GOT-JUNK? National Account Service Agreement, can the Franchisor's affiliate enter into National Account agreements?
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 as agent or as general contractor as follows:
(a)
Where Franchisor, Commercial Services or the affiliate enters into a National Account agreement as agent, it shall act as agent on behalf of Franchisee, and Franchisee hereby appoints Franchisor, Commercial Services or the affiliate, as the case may be, as its attorney-in-fact to do so.
(b)
Where Franchisor, Commercial Services or the affiliate enters into a National Account agreement as general contractor, it shall enter into such agreement as principal, and may subcontract the services to such National Account to Franchisee, provided that Franchisee services such National Account in accordance with the terms and conditions of the particular National Account agreement and is otherwise in compliance with the obligations of client expectations set by Franchisor from time to time.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the National Account Service Agreement outlines the terms under which the franchisor, its commercial services division, or their affiliates can engage in National Account agreements. These agreements are designed to benefit franchisees by leveraging the national scope of the 1-800-GOT-JUNK? system, allowing them to service clients with multiple locations across different territories.
The 1-800-GOT-JUNK? agreement specifies that the franchisor, its Commercial Services division, or an affiliate can act either as an agent or as a general contractor when entering into National Account agreements. If acting as an agent, they represent the franchisee, essentially acting as the franchisee's attorney-in-fact. If acting as a general contractor, they enter the agreement as the principal and may subcontract the services to the franchisee, provided the franchisee meets the terms of the National Account agreement and complies with client expectations set by 1-800-GOT-JUNK?.
This arrangement allows 1-800-GOT-JUNK? to pursue large national contracts and distribute the work to franchisees, potentially increasing revenue for franchisees who participate. However, franchisees must adhere to the specific terms and service levels dictated by these National Account agreements, which may include discounts, commissions, specialized service requirements, and specific insurance levels. Franchisees should be aware that 1-800-GOT-JUNK? reserves the right to solicit customers within a franchisee's territory to develop them into National Accounts and may also enter into National Account agreements for services both within and outside the franchisee's territory.