Can 1-800-GOT-JUNK? allow both the original franchisee and other franchisees to serve a customer that has become a National Account Customer?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Any customer that purchases local commercial services from you may at any time become or qualify to become a National Account Customer if the customer has offices, franchises, or stores, or is otherwise conducting business both inside and outside of the Territory, or otherwise meets the definition of a National Account Customer. In such cases, we may in our sole discretion (i) treat the local commercial customer as a National Account Customer, or (ii) allow you and the franchisee(s) for the customer’s other location(s) to each serve and bill the customer in your 4899-8658-3815.1
applicable territories, subject to any service and pricing policies that we establish to provide consistency for the customer (subject to applicable law).
Source: Item 12 — Territory (FDD pages 33–36)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, a customer that initially purchases local commercial services from a franchisee can later become a National Account Customer if they have multiple locations or conduct business both inside and outside the franchisee's territory. In such instances, 1-800-GOT-JUNK? has the discretion to either treat the customer as a National Account Customer or allow both the original franchisee and other franchisees in the customer's other locations to serve and bill the customer within their respective territories. This is contingent upon adhering to any service and pricing policies established by 1-800-GOT-JUNK? to ensure consistency for the customer, while also complying with applicable laws.
This policy has significant implications for franchisees. While it allows them to potentially retain business from customers who expand beyond their territory, it also means that 1-800-GOT-JUNK? can reclassify a local customer as a National Account, taking the business away from the original franchisee. The decision rests solely with 1-800-GOT-JUNK?, highlighting the importance of understanding the criteria for National Account Customers and the potential impact on a franchisee's customer base.
Franchisees should be aware of the service and pricing policies that 1-800-GOT-JUNK? establishes for National Account Customers, as these policies will govern how they serve and bill these customers if they are allowed to continue providing services. The FDD also mentions a national account service agreement in Exhibit H, which franchisees may be required to enter into. This agreement likely outlines the specific terms and conditions for serving National Account Customers and should be carefully reviewed. Prospective franchisees should inquire about the typical process and criteria 1-800-GOT-JUNK? uses to determine when a local customer becomes a National Account and how this impacts the franchisee's ongoing relationship with that customer.