Am I, as a 1-800-GOT-JUNK? franchisee, prohibited from soliciting customers located outside of my designated territory?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
You are prohibited from soliciting customers or providing services to premises located outside of your Territory, including through distribution channels such as the internet, telemarketing or other direct marketing.
You must operate the Franchised Business exclusively from the Franchised Location, and in full compliance with any applicable lease and the Franchise Agreement and Operations Manual. Your Franchised Location may be located anywhere within your Territory. We do not provide you with assistance in selecting or securing your Franchised Location, and we do not approve the Franchised Location. You may relocate the Franchised Location only after prior written notice to us, and at your sole cost and expense.
National Account Customers
We reserve the right to solicit or permit other franchisees or third parties designated by us to solicit customers located anywhere in your Territory in order to develop them as National Account Customers. “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, locations, or stores or who is otherwise conducting business both inside and outside of your Territory and for which we have arranged to provide the Services at multiple locations inside or outside of your Territory. National Account Customers may include 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 from us at multiple locations inside or outside of your Territory.
We have the sole and exclusive right to supply (in whole or in part) or designate any other entity (including you, other System franchisees or our affiliates) to supply the Services to National Account Customers, whether the Services are delivered to a location inside or outside of your Territory. We may, but are not required to, request that you provide the Services to a National Account Customer with premises located within your Territory in exchange for a payment to be made by us to you in an amount to be determined by us at the time of our request. We may require you to enter into our then current form of national account service agreement (the current form of which is attached as Exhibit H) in order to provide the Services to National Account Customers with premises located within your Territory. You will be deemed to have rejected our request to provide the Services to a National Account Customer if you have not accepted our request within one business day, in which case we may our self, through an affiliate, by a subcontractor or through another System franchisee provide the Services to the National Account Customer. Our 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.
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.
Source: Item 12 — Territory (FDD pages 33–36)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, franchisees are indeed restricted from soliciting customers or providing services outside their designated territory. This prohibition extends to all distribution channels, including online platforms, telemarketing, and other direct marketing methods. This means that as a 1-800-GOT-JUNK? franchisee, your marketing and service efforts must be confined within your assigned geographical boundaries.
This territorial restriction has significant implications for how you operate your 1-800-GOT-JUNK? franchise. You must ensure that your advertising and promotional campaigns are targeted specifically to your territory to avoid violating the Franchise Agreement. While this limitation might seem restrictive, it is designed to protect the market area of each franchisee within the 1-800-GOT-JUNK? system.
However, 1-800-GOT-JUNK? retains specific rights regarding National Account Customers. They reserve the right to solicit customers anywhere, including within your territory, to develop them as National Account Customers. These are customers with multiple locations inside and outside your territory for whom 1-800-GOT-JUNK? arranges services. 1-800-GOT-JUNK? has the exclusive right to supply services to these National Account Customers, although they may request you to provide the services within your territory, with payment to be determined by them. You can reject the request, but 1-800-GOT-JUNK? can then use another franchisee to service the customer. Also, a local commercial customer can become a National Account Customer if they expand outside your territory, at which point 1-800-GOT-JUNK? can treat them as such or allow you and other franchisees to serve the customer in your respective territories.