Can 1-800-GOT-JUNK? designate another entity to supply services to National Account Customers?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — Territory (FDD pages 33–36)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? has the exclusive right to designate another entity to supply services to National Account Customers. This means that 1-800-GOT-JUNK? is not obligated to use the franchisee to service these customers. This applies whether the services are needed inside or outside of the franchisee's territory. The designated entity can include the franchisee, other 1-800-GOT-JUNK? franchisees, or 1-800-GOT-JUNK?'s affiliates.
1-800-GOT-JUNK? may request that a franchisee provide services to a National Account Customer within their territory, and in return, 1-800-GOT-JUNK? will compensate the franchisee with an amount determined by 1-800-GOT-JUNK? at the time of the request. To provide services to National Account Customers, 1-800-GOT-JUNK? may require the franchisee to enter into a national account service agreement. If the franchisee does not accept 1-800-GOT-JUNK?'s request within one business day, 1-800-GOT-JUNK? can provide the services themselves, through an affiliate, a subcontractor, or another franchisee.
This policy regarding National Account Customers is subject to change, with details found in 1-800-GOT-JUNK?'s Operations Manual. For a prospective franchisee, this means that while you have a protected territory, 1-800-GOT-JUNK? retains significant control over National Account Customers. It is important to understand how these accounts are managed and how they might impact your potential revenue. It would be prudent to discuss with 1-800-GOT-JUNK? how often franchisees are asked to service national accounts, how the compensation is determined, and what recourse a franchisee has if they disagree with the compensation offered.