Does the 1-800-GOT-JUNK? Franchise Agreement include a section on 'National Account Customers'?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
e Secured Party: Brian Scudamore
EXHIBIT H National Account Service Agreement 4905-6245-1013.1 NATIONAL ACCOUNT SERVICE AGREEMENT The 1-800-GOT-JUNK? National Account Service Agreement is between 1-800-GOT-JUNK? LLC (“Franchisor”), 1-800-GOT-JUNK? Commercial Services (USA) LLC (“Commercial Services”), and the undersigned franchisee of the 1-800-GOT-JUNK? franchise system (“Franchisee”). WHEREAS: A. Franchisor and Franchisee have entered into a franchise agreement dated as of the date noted on the signature page hereto (the “Franchise Agreement”) whereby Franchisee has been granted the right to carry on a Franchised Business in the 1-800-GOT-JUNK? franchise system (the “System”). B. The existence of multiple franchisees in the System creates opportunities to enter into agreements with other entities that have multiple locations in more than one territory in the System (each, a “National Account”) for the benefit of participating franchisees by leveraging the national scope of the System. C. The establishment of National Accounts is best facilitated by the establishment of a program, upon the terms set out herein, whereby Franchisor will have the authority to negotiate and manage National Accounts on behalf of the System as a whole, whether acting as agent or as principal (the “Program”). Now therefore, Franchisor, Commercial Services and Franchisee agree as follows: 1. Interpretation. All capitalized terms not otherwise defined herein shall have the same meaning as under the Franchise Agreement. 2. Agency or General Contractor. Franchisor, Commercial Services, or an affiliate of either of them, may enter into National Account agreements as agent or as general contractor as follows: (a) Where Franchisor, Commercial Services or the affiliate enters into a National Account agreement as agent, it shall act as agent on behalf of Franchisee, and Franchisee hereby appoints Franchisor, Commercial Services or the affiliate, as the case may be, as its attorney-in-fact to do so. (b) Where Franchisor, Commercial Services or the affiliate enters into a National Account agreement as general contractor, it shall enter into such agreement as principal, and may subcontract the services to such National Account to Franchisee, provided that Franchisee services such National Account in accordance with the terms and conditions of the particular National Account agreement and is otherwise in compliance with the obligations of client expectations set by Franchisor from time to time. 3. National Account Terms. Franchisor, Commercial Services or an affiliate of either of them, may enter into National Account agreements upon any terms it determines, in good faith, to be commercially viable for the System, including, without limitation: (a) The provision of discounts off of regular retail pricing to the National Account, whether or not based upon volume. 4905-6245-1013.1 (b) The payment of commissions to the National Account or any party referring the National Account whether on a one-time or on an ongoing basis. (c) The establishment of fixed pricing or pricing models unique to the National Account.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Yes, according to the 2025 Franchise Disclosure Document, the 1-800-GOT-JUNK? Franchise Agreement addresses 'National Account Customers.' Exhibit H of the Franchise Agreement is the National Account Service Agreement. This agreement outlines the relationship between 1-800-GOT-JUNK? LLC (Franchisor), 1-800-GOT-JUNK? Commercial Services (USA) LLC (Commercial Services), and the franchisee. It details how the franchisor manages National Accounts, potentially acting as an agent or general contractor on behalf of franchisees.
The agreement states that the existence of multiple franchisees creates opportunities to enter into agreements with entities that have multiple locations in more than one territory, which are referred to as National Accounts. 1-800-GOT-JUNK? aims to facilitate these National Accounts through a program where the franchisor negotiates and manages these accounts for the benefit of participating franchisees.
Under the National Account Service Agreement, 1-800-GOT-JUNK? Commercial Services, or an affiliate, can act either as an agent or a general contractor. If acting as an agent, they represent the franchisee and have the authority to act on their behalf. If acting as a general contractor, they may subcontract services to the franchisee, provided the franchisee meets the terms of the National Account agreement and complies with client expectations set by the franchisor. Franchisees may be required to enter into the current form of the National Account Service Agreement to service National Account Customers within their territory and may decline to provide services to a National Account Customer.