According to the 1-800-GOT-JUNK? National Account Service Agreement, what is the meaning of 'commercially viable' in the context of National Account terms?
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.
4905-6245-1013.1 (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 the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the franchisor, Commercial Services, or their affiliates have the authority to enter into National Account agreements if they determine, acting in good faith, that the terms are 'commercially viable' for the 1-800-GOT-JUNK? system. This means 1-800-GOT-JUNK? has broad discretion to set the terms of National Account agreements as long as they believe those terms will benefit the franchise system as a whole.
Specifically, 'commercially viable' terms can include various financial and service-related arrangements. These may involve offering discounts off regular retail prices to National Accounts, regardless of volume. They can also include paying commissions to the National Account or any party referring the National Account, whether as a one-time payment or on an ongoing basis. Furthermore, 1-800-GOT-JUNK? can establish fixed pricing or unique pricing models tailored to the National Account.
In addition to pricing, 'commercially viable' can also refer to service-level agreements. This could mean providing service within specific timeframes, offering regularly scheduled service, or using specialized equipment or vehicles. It might also involve centralized billing through 1-800-GOT-JUNK? or its affiliates. Franchisees may also be required to maintain specific insurance levels and comply with additional service terms, such as employee training, investigations, and particular reporting or invoicing procedures required by the National Account.