According to the 1-800-GOT-JUNK? National Account Service Agreement, what is the relationship between the Franchisor and Commercial Services?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
TIONAL ACCOUNT SERVICE AGREEMENT The 1-800-GOT-JUNK? National Account Service Agreement is between 1-800-GOT-JUNK? LLC (“Franchisor”), 1-800-GOT-JUNK? Commercial Services (USA) LLC (“Commercial Services”), and the undersigned franchisee of the 1-800-GOT-JUNK? franchise system (“Franchisee”). WHEREAS: A. Franchisor and Franchisee have entered into a franchise agreement dated as of the date noted on the signature page hereto (the “Franchise Agreement”) whereby Franchisee has been granted the right to carry on a Franchised Business in the 1-800-GOT-JUNK? franchise system (the “System”). B. The existence of multiple franchisees in the System creates opportunities to enter into agreements with other entities that have multiple locations in more than one territory in the System (each, a “National Account”) for the benefit of participating franchisees by leveraging the national scope of the System. C. The establishment of National Accounts is best facilitated by the establishment of a program, upon the terms set out herein, whereby Franchisor will have the authority to negotiate and manage National Accounts on behalf of the System as a whole, whether acting as agent or as principal (the “Program”). Now therefore, Franchisor, Commercial Services and Franchisee agree as follows: 1. Interpretation. All capitalized terms not otherwise defined herein shall have the same meaning as under the Franchise Agreement. 2. Agency or General Contractor. 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. 3. National Account Terms.
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 relationship between 1-800-GOT-JUNK? LLC (the Franchisor), 1-800-GOT-JUNK? Commercial Services (USA) LLC (“Commercial Services”), and the franchisee. This agreement details how national accounts, which are agreements with entities having multiple locations across different franchise territories, are managed for the benefit of franchisees. The aim is to leverage the national presence of the 1-800-GOT-JUNK? system.
1-800-GOT-JUNK? Commercial Services, along with the Franchisor or its affiliates, can enter into National Account agreements either as an agent or as a general contractor. When acting as an agent, 1-800-GOT-JUNK? Commercial Services represents the franchisee and has the authority to negotiate and manage national accounts on their behalf. Conversely, when acting as a general contractor, 1-800-GOT-JUNK? Commercial Services enters into agreements as the principal and may subcontract services to the franchisee.
In the latter scenario, the franchisee must adhere to the terms and conditions of the National Account agreement and meet the client expectations set by 1-800-GOT-JUNK?. This setup allows 1-800-GOT-JUNK? to manage large, multi-location accounts efficiently while ensuring that individual franchisees benefit from the business generated by these accounts, provided they comply with the established standards and contractual obligations.