What actions are required of the franchisee regarding 'National Account Customers' as described in Section 2.4 of the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may require Franchisee to enter into Franchisor’s then current form of National Account Service Agreement in order to provide the Services to National Account Customers with premises located within the Territory.
Franchisee may decline to provide the Services to a National Account Customer by providing a written notice to Franchisor within one (1) Business Day of receipt of a request by Franchisor to provide the Services to a National Account Customer, in which case Franchisor may itself, through an Affiliate, by a subcontractor or through another System franchisee provide the Services to the National Account Customer.
Franchisee will be deemed to have rejected Franchisor’s request to provide the Services to a National Account Customer if Franchisee has not accepted Franchisor’s request within one (1) Business Day, in which case Franchisor may itself, through an Affiliate, by a subcontractor or through another System franchisee provide the Services to the National Account Customer.
Franchisee acknowledges and agrees that Franchisor’s policies and procedures with respect to the provision of the Services to National Account Customers may change from time to time as detailed in the Operations Manual.
For the purposes of this Section 2.4 and this Agreement, “National Account Customers” means a customer, a group of customers or an entity acting on behalf of a customer group or customers (under common ownership or control) with offices, franchises or stores or who is otherwise conducting business both inside and outside of the Territory and for which the Franchisor has arranged to provide the Services at multiple locations inside or outside of the Territory.
National Account Customers may include, without 4908-1371-6037.2 Franchise Agreement 4/22 limitation, corporations, non-profit organizations, federal, state and local government entities and organizations and any other persons or entities that may have a need for purchasing the Services at multiple locations inside or outside of the Territory.
Franchisee acknowledges and agrees that any customer that purchases local commercial services from Franchisee may at any time become or qualify to become a
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Section 2.4 of the Franchise Agreement outlines the franchisee's responsibilities regarding National Account Customers. These customers are defined as those with multiple locations inside or outside the franchisee's territory for whom 1-800-GOT-JUNK? has arranged services. These can include corporations, non-profits, and government entities.
A key requirement is that 1-800-GOT-JUNK? may require the franchisee to enter into a National Account Service Agreement to serve these customers within their territory. However, the franchisee has the option to decline providing services to a National Account Customer, but they must provide written notice to 1-800-GOT-JUNK? within one business day of the request. If the franchisee declines or fails to respond within this timeframe, 1-800-GOT-JUNK? can provide the services themselves through an affiliate, subcontractor, or another franchisee.
The 1-800-GOT-JUNK? Franchise Agreement also states that the policies and procedures for serving National Account Customers can change over time, as detailed in the Operations Manual. Furthermore, any local commercial customer of the franchisee may become or qualify as a National Account Customer at any time. This means that a franchisee's existing customer base could transition into national accounts managed directly by 1-800-GOT-JUNK?, potentially impacting the franchisee's revenue and requiring them to adapt to new service protocols.