According to the 1-800-GOT-JUNK? National Account Service Agreement, what rights does the Franchisor reserve regarding the solicitation of National Accounts?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that:
(a)
Franchisor reserves the right to solicit or permit other franchisees or third parties designated by Franchisor to solicit customers located anywhere in the Territory in order to develop them as National Accounts;
(b)
Franchisor, Commercial Services, or an affiliate of either of them, may enter into National Account agreements for services to be provided within or outside of the Territory;
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 specific rights that 1-800-GOT-JUNK? reserves regarding the solicitation of National Accounts. 1-800-GOT-JUNK? retains the right to solicit customers, or allow other franchisees or third parties to solicit customers, within a franchisee's territory to develop them into National Accounts. This means that even within a franchisee's exclusive territory, 1-800-GOT-JUNK? can directly pursue and secure National Accounts.
Additionally, 1-800-GOT-JUNK?, Commercial Services, or their affiliates can enter into National Account agreements for services to be provided either within or outside the franchisee's territory. This implies that a franchisee may be required to service National Accounts even outside of their designated area, or conversely, that 1-800-GOT-JUNK? can assign National Accounts within the franchisee's territory to other franchisees or third parties.
This aspect of the agreement is crucial for prospective franchisees to understand. While franchisees are granted a specific territory, 1-800-GOT-JUNK? maintains control over National Accounts, which could significantly impact a franchisee's potential revenue and operational scope. Franchisees should clarify with 1-800-GOT-JUNK? how National Accounts are assigned, what percentage of revenue from National Accounts they can expect, and what recourse they have if National Accounts within their territory are assigned to others.